How Will The Subprime Lending Crisis Affect Incline Village Real Estate?
Fortunately Incline Village will be largely unaffected by the recent subprime crisis. Generally speaking, resort destinations are less susceptible to national housing issues due to the desirability of the location, the number of retiree and second home owners, and ultimately, the price point of homes in the area. Incline Village meets that criteria, and therefore does not experience the more extreme real estate fluctuations that you hear about in the news.
The current median home price in Incline Village is $1,276,000(up from $1,100,000 a year ago), compared to the national median of $208,500. Home buyers purchasing in this price bracket tend to have higher credit scores and higher net worth. These buyers qualify for great mortgage options without the need for subprime loans. In fact, a cash purchase of an Incline Village home priced over $1 Million is not uncommon. Because of the lack of subprime loans in Incline Village, we will not experience any major repercussions from this crisis.
Although we won’t see bankrupt lenders and housing foreclosures locally, borrowers may notice a tightening of loan guidelines and credit standards over the next 12 months. Before loan requirements change, you should take advantage of the fixed rate programs which are currently approaching eighteen month lows. If you are considering a purchase or refinance, call Marc at 775.833.1014 for your personal consultation today. |
