High-stakes bidding wars. All-cash offers. Limited supply. After two years of scorching growth in the U.S. housing market, will there be a cool-down and possibly a fall in sales and prices in 2022, along with a return to some normalcy?
Um, not exactly, several housing experts tell USA TODAY.
"Home sales are likely to be slightly lower in 2022 from the anticipated rise in mortgage rates. Home prices, meanwhile, will continue to rise due to the ongoing housing shortage even as demand is clipped a bit," said Lawrence Yun, chief economist with the National Association of Realtors (NAR), who oversees NAR's research group.
"After seeing such hyper-growth," said Andreis Bergeron, head of brokerage operations at Awning.com, a real estate tech company,"I don't think we will see a correction, maybe a slowdown."
Ryan McLaughlin, the CEO of the Northern Virginia Association of Realtors (NVAR), also does not expect a drop in prices. "I don't see any sort of crash in the near future. No way."
The Fed is holding the Federal Funds Rate steady at 0 to .25%.
The Fed's decision today doesn't directly affect mortgage rates, but the federal funds rate can influence other interest rates that affect borrowing costs.
What does this mean for home owners and home buyers?
Mortgage rates are still historically low, so home owners and home buyers could take advantage by:
- Buying a new home
- Refinancing to get a lower rate or eliminate mortgage insurance
- Financing home renovations
- Funding major expenses (like college tuition)
- Consolidating debt*
Interested in learning more about the federal funds rate and the impact it can have on inflation, credit, and employment? Check out this quick explanation for more details.
Don't hesitate to reach out to me for a conversation about home financing - get in touch with me today!
are at historically low levels. Yet development in southern Nevada is booming.
So it’s natural for us to be concerned about our water. Will we have enough here in
Mesquite? The answer is probably “Yes.” But we’re talking about water. It’s complicated.
Here’s what we know, according to the Virgin Valley Water District (VVWD):
• Mesquite relies on groundwater, not the Colorado River or its reservoir lakes.
Therefore our water supply is not affected by the widely-reported declines at Lake
Mead and Lake Powell.
• Mesquite’s residential water comes from a deep, high-production aquifer, identi
fied as Nevada Basin 222. The capacity of this aquifer has remained constant even
with the rapid development of recent decades.
• The aquifer is recharged by mountain snow pack in nearby Utah and Arizona. Pre
cipitation in the mountains has remained consistent over the years.
• The VVWD has state-permitted rights to 12,271 acre-feet of groundwater per year.
But since 2008, our water use has been steady at about 6,500 to 7,000 acre feet. Thus
the VVWD is currently using only about 60 percent of its permitted ground water.
• More important, water resources appear to be keeping up with growth. The aqui
fer’s water level is measured year-round by VVWD, both through its water pro
duction wells and also by 16 monitor wells. The water level and production po
tential of the aquifer have remained consistent.
• Finally, in addition to groundwater, the VVWD owns substantial surface water
rights from the Virgin River and mountain springs. So while those extensive sourc
es are not used now, they are available for the future.
So far, so good. But there are still lots of basics we don’t know:
We don’t really know how much water our valley is sitting on. The subsurface
geology and its effects on water movement are not well-understood. In addition, the
Virgin River contributes to subsurface water, but how much is unknown. This means
we don’t really know the maximum amount of water that could be taken sustainably
every year. And in turn, that means we can only guess how much growth can be
supported in the out-year decades. The VVWD’s Master Water Plan calculates that
Basin 222 groundwater will suffice until 2034. After that, river and spring water
will be needed. With total combined water resources on-line, plus conservation and
innovation, new demand might be supported late into the century, according to the
independently prepared Water Plan. But we need to know more.
What can be done to better understand Mesquite’s water potential?
1. This year, the VVWD is supporting a new review of existing data to update our
understanding of Basin 222 water.
2. The VVWD has also commissioned development of a computer model to use data
from its own wells and other information to better monitor the status and capacity
of groundwater sources. This work stems from updated tools developed by the U.S.
Geological Survey.
3. The state water engineer is also pleading for some $6 million to perform a 10-year
statewide, all-basins assessment of water resources in Nevada. The legislature has
so far failed to provide for such a study.
The bottom line?
In a presentation to the Mesquite City Council on September 28, Nevada Water
Resources Deputy Administrator Micheline Fairbank said Basin 222 is “sustainable
and stable,” with “no need for concern” for the near- and mid-term. Conservation is
still key. And so is knowledge development. In the world of water, the “unknowns”
still outweigh the “knowns.” We need to know more about the basics to predict
availability, and to use water ever more effectively.
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- Water supply for Mesquite appears well-assured for the coming decades, even including rapid development.
- Mesquite draws its water from a stable aquafer, not from rivers or lakes where decline of water has been in the news.
- We use only about 60 percent of our allotted share of aquafer water, and our water conservation efforts are top-of-the-line. We rank close to Tucson Arizona which does very well conserving water. We still have not used our surface water allocations from the Virgin River and the Rights to Spring Water up on the Mountain.
Senior Right Holders usually prevail in court, in case Vegas comes for our water.
Want a deeper look at the federal funds rate and its relationship to inflation, employment, and credit? Check out this overview.
What does this mean for home owners and home buyers? It could be a great time to leverage low rates by:
- Buying a new home
- Refinancing to get a lower rate or eliminate mortgage insurance
- Financing home renovations
- Funding major expenses (like college tuition)
- Consolidating debt*
I'm always available for a conversation about home financing - reach out to me today!
The median sale price of a single-family home sold in Southern Nevada in January matched an all-time high at $345,000, according to a report today from Las Vegas Realtors. The mark is a 13.1% increase from January 2020. More important, it equals the record-setting median price of the past two months. “The local housing market continues to perform better during this pandemic than most of us expected". There are 2,315 single-family homes listed for sale without any sort of offer, which is down 52.8% from one year ago. There are 847 condos and townhomes listed without offers, a 40.3% drop from one year ago. A total of 3,262 properties were sold in January. “This presents a great opportunity for sellers, who’ve never seen a better time to sell their home for top dollar,” The above statistics are from teh Las Vegas Valley and they mimic Mesquite quite well. Call me for a market anaylsis of what your home will sell for!!