Housing market creeping upward

Last month's report from Business Insider ranking Carson City No. 1 in the nation for best housing markets over the next five years, didn't particularly surprise Sandi Smith.

Smith, a Realtor with Coldwell Banker Best Sellers in Carson City and president of the Sierra Nevada Association of Realtors, said she believes the reason Carson City came out on top could be the same reason a house sells quickly - location, location, location.

"They probably picked us because of our community," Smith said. "We still have a small-town feel, and we are 20-30 minutes from that beautiful jewel Lake Tahoe. We have Reno as our neighbor if we want more shopping and restaurants, and Sacramento, San Francisco and the coast are only two to four hours away."

Business Insider, using data provided by Fiserv Case Shiller Indexes, said projected annualized growth of 11.9 percent can be expected between 2011 and 2016.

Reno tied for eighth on the list with Bremerton-Silverton, Wash., with a projected 9.3 percent growth.

Mayor Bob Crowell was pleased with the announcement.

"This is excellent news. It shows that Carson City is on the map, and that while times are difficult, the energy level that's coming from a lot of different people and organizations here is being noticed and working," Crowell said.

Smith said she already is starting to see the turnaround in Carson City.

"We've been through a really tough time, but properties are selling, interest rates are at an all-time low, we have a good inventory, and there are some good prices out there. There is also a lot of negotiating going on. Everybody is working together to put deals together," she said.

Smith said she is very hopeful about the future of the housing market.

"We're probably through the worst of it. I can feel there's an energy of people wanting to be optimistic, and there are some great opportunities out there now to buy and sell," she said.

Phil Reith, manager/broker for Re/Max Realty Affiliates in Carson City, said the city first crept onto the housing market radar a year ago when Bloomberg Businessweek reported that Carson City would be fifth in the nation to experience rebounding housing market prices.

But they also said that with Carson City's high unemployment rate, the recovery would depend on job creation.

"I wish I could say we'd hit bottom, because we've been free-falling for a number of years. I'd say it has been the worst housing climate since the Depression," Reith said.

In 2009, housing inventories peaked, he said. Today there are 426 homes and condos for sale ranging from $33,400 to nearly $2.8 million, according to the Northern Nevada Multiple Listing Service. That figure reflects a small drop.

"The market is getting healthier, but it's still a buyer's market. The new report is probably a bit optimistic, but I'm hopeful," Reith said.

Smith said she would like to see property values return to a reasonable growth rate.

"There are still some distressed properties on the market, but it looks like we're heading in a good healthy direction. When it was moving the other way, it was insanity. We want to get back to a stable rate, growing 2-4 percent, not 25 percent," Smith said.