dhughes' Blog: Foreclosures

From 2002 till 2006 builders went crazy building houses.  Now we have the lowest amount of new starts on new homes in 17 years. Builders were outpacing the buyers and now there is a glut of unsold, vacant new homes on the market.  Even though builders have cut back, so has the number of buyers in the market. For this recovery to begin we have to eliminate the amount of inventory currently being held by the builders in the Reno Sparks area.   First time home buyers are the key…   As renters start to realize the amount of rent they are shelling out they can make a monthly mortgage payment, they will now become first time home buyers.   The crazy thing is the new homes are selling for less than existing homes on the market, and this cannot last.… Read Full Post

The Global Insight National City house value report for the first quarter of this year says that the $251,500 median home price in Reno is 0.2 below what they consider absolute fair market value. Back in 2004 was the last time that home prices in Reno were considered to be at fair market value. In the spring of 2006 we were at the peak at 40% overvalued, and 2007 about 25% overvalued.

Bank owned properties are currently making up about 40% of the listings on the market in the Reno area and 66% of the homes going into escrow. Because of the number of short sales and foreclosures on the market I am seeing the median price continuing to go down for the next couple of months. Reno and Las Vegas were on this list in the bottom 50 of areas with the steepest…

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