Zillow Advice: Rent vs. Buy - Reno: Rising Inventory and Falling Prices Make It A Bad Time To Buy

Thanks for the update! I ...

Thu, 18 Jun 2009 17:32:00 GMT

Thanks for the update! I appreciate it.

Hi Sunny,Here's a Reno update ...

Thu, 18 Jun 2009 16:07:00 GMT

Hi Sunny,

Here's a Reno update from Madeline Zook, one of Reno's premier REAs:

"The currently real estate market is extremely mixed, with homes below $200,000 seeing brisk activity, usually 10-15 multiple offers, and selling for more than asking price. So called "move-up" homes in the $200,000 to $800,000 range sit, moving the median sales price down overall. It is our opinion at this time that the market will not reach bottom before 2010, and any turn around in the market is probably 4-5 years out.

REO properties and so called pre-foreclosure or "short sales" continue the trend started last September and now overwhelmingly dominate the market. As of this writing, there were 3250 homes for sale listed on multiple listing service (down 78 from April), and 60% of them were bank owned or soon to be. 71% of all homes sold in May were either bank owned or pre-foreclosure sales. With brisk sales for the last 3 months, the quantity of REO (bank owned) single family homes has decreased significantly by 190 homes since last month to 843 as of this writing. REO condos have decreased by 37 units since March, and are now numbered at 185. Not only do REO properties depress sales prices for resale homes, but they also "remove" the opportunity for the seller to "move up" in the market, as there is no family selling one house to buy another."

http://www.sierranvrealestate.com/index.htm

CA just to impose 3 ...

Thu, 18 Jun 2009 15:10:00 GMT

CA just to impose 3 months moratorium

Most banks welcome the moratoriums. As one journalist put it in, 'How Banks are Gaming the Real Estate Market:'

To put it simply: banks are limiting supply in order to keep inflating the bubble. Keeping properties off the market makes sense for two reasons: it allows banks to engage in another round of brazen ripoffs by selling at least some of their properties at artificially high prices to a new wave of sucker investors (many of which are first-time home buyers). But more importantly, it allows the banks to avoid recording a loss on their balance sheets, making them look more profitable then they really are

In CA's case, however, most of the banks will not be held to the most recent moratorium. There is a loophole that states this will only be imposed if banks do not have their own loan mod program in place, which of course, as impotent as they may be, almost all the big banks in CA already have these programs in place. That said, CA lenders are still doing everything possible to delay foreclosures.

You said that the decent ...

Thu, 18 Jun 2009 14:55:00 GMT

You said that the decent starter houses were sort of drying up in Reno except for the junk. Has there been much movement in the the prices of the move up middle or are they just kind of sitting in the same price range?

The casino take is well down.Reno ...

Thu, 18 Jun 2009 14:45:00 GMT

The casino take is well down.

Reno got hit hard by the opening of the CA Indian casinos starting about 7 years ago and has done a pretty good job of diversifying its economy since then, (thanks to an influx of Californians.)

LV got hit harder.

As far as cat houses go -- what a dismal scene fortunately located in the rural counties only. Prostitution is illegal in Reno and Carson City.

Reno remains a great town for families and the majority of the people here only go in the casinos for the buffets, which are great and cheap.

Ah yes the casinos. As long ...

Thu, 18 Jun 2009 04:22:00 GMT

Ah yes the casinos. As long as people have 401k money left and can draw it out for "emergencies" casinos will have money. How is Wynn doing on the Forbes list?

Note:The $400.00 and other ...

Thu, 18 Jun 2009 02:38:00 GMT

Note:

The $400.00 and other rules are in DRAFT at this time.

this in no way changes anything, ...

Thu, 18 Jun 2009 01:57:00 GMT

this in no way changes anything, it merely delays Nevada's problems. Both parties split the cost of mediation, up to $400; well that is a pretty cheap extension on the $0 rent option that many home owners are utilizing;

California, Nevada and other states keep passing these programs, which will simply increase the ultimate dollar loss that banks and fannie/freddie/fha (ie taxpayers) ultimately bear.

Are we japanese yet?

"I'm divorced... "Nevada.. ...

Thu, 18 Jun 2009 01:35:00 GMT

"I'm divorced... "

Nevada.. the best Cat Houses in the nation.
You can always wash your sorrows at the ranch!

CA just to impose 3 ...

Thu, 18 Jun 2009 01:24:00 GMT

CA just to impose 3 months moratorium, which is not make my sister happy, since she looking for the property and there ai'nt many in my area, regular sales as same as foreclosure sales.