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March 8, 2008
Solid foundation: Elko is surviving the nationwide housing slump
By MARIANNE KOBAK - EDFP Business Editor
Saturday, March 8, 2008 12:14 AM PST
ELKO - Nationally the real estate market may be going down the tubes, but here in Elko County it's strong.
According to the Elko County Association of Realtors, “the average sales price of a home in Elko County, over the last six months, is down just 4.6 percent over the prior six-month period,” said Jim Winer of Coldwell Banker Q-Team Realty. “When comparing other housing markets in Nevada and across the nation that are down some 20 percent and in some cases over 40 percent ... Elko's housing market is quite strong.”
“There's never been a better time to buy a house in Elko,” Winer said.
He said his office has had buyers “waiting on the sidelines” because they hear on the national level real estate numbers are in decline and they think those numbers apply to the local market.
“There has always been an adage in real estate that all real estate is local,” he said.
Prices in Las Vegas, California and elsewhere around the nation do not dictate pricing in Elko County, he said.
“Elko's never followed national trends,” Winer said. “We have had some slowdown in Elko, but not like Vegas.”
He said the average sale price for a home in Elko County is $212,673 and in the previous six months it was $223,132.
Winer said the market is “close” for sellers and buyers, but it's leaning toward buyers.
He said people should talk to local Realtors to get the facts on the local market.
Andy Morris, Elko's branch manager for Eagle Home Mortgage, agreed Elko's real estate market was strong.
“I think it's a real healthy market,” he said. “At times it's been a buyer's market and at times it's been a seller's, but I think it's about equal right now.”
Morris and Winer don't think prices in Elko will decrease drastically and if people are considering a purchase, now is a good time to buy since interest rates are near a historic low.
The current interest rates are about 61/4 percent.
Despite the strong real estate market, both men said there is a lack of affordable housing - homes offered for less than $200,000.
“I think the homes (available) in the area are the higher end,” Morris said. “We're lacking in the under $200,000. If there's a weakness that's it.”
Winer said development costs - fees and price of construction materials - have made it almost impossible to build affordable “traditional” housing. Traditional housing is a three-bedroom, two-bath, stick-built house with garage on 8,000 square feet of property.
Winer said economically booming China and India are buying more steel and lumber than ever before and disasters, such as Hurricane Katrina, have lessened the supply of construction materials.
“People have had to turn to alternative housing to get the cost down,” said Winer. “They shrink the size of their lot and the size of their house, so we're seeing more patio homes and town homes.”
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