Chance Gates' Blog

Logo of the National Association of Realtors. (Photo credit: Wikipedia)

Information about NAR is available at www.realtor.org.

Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9.  The data reflects contracts but not closings.

The index is now at the highest level since April 2010 when it reached 111.3.

Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing.  “First quarter sales closings were the highest first quarter sales in five years.  The latest contract signing activity suggests the second quarter will be equally good,” he said.

“The housing market has clearly turned the corner.  Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.

The PHSI in the Northeast slipped 0.8 percent to 78.2 in March but is 21.1 percent above March 2011.  In the Midwest the index declined 0.9 percent to 93.3 but is 16.9 percent higher than a year ago.  Pending home sales in the South rose 5.9 percent to an index of 114.1 in March and are 10.6 percent above March 2011.  In the West the index increased 8.7 percent in March to 108.0 and is 9.0 percent above a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales.  In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.

NOTE: Existing-home sales for April will be reported May 22, the next Pending Home Sales Index will be released May 30 and first quarter metro area home prices will be released May 9; release times are 10:00 a.m. EDT.

Reno/Sparks Association of REALTORS®

February, 2012
Market Report
Area 100, Greater Reno/Sparks

Summary
– “For the second consecutive year, February had the highest volume of unit sales for a month of February
in the history of MLS,” said Kevin Sigstad, 2012 president of the Reno/Sparks Association of REALTORS
and the broker with Re/Max Premier Properties. “We are continuing to see record highs in number of
existing home sales. Pair that with the fact that our region is not experiencing the typical seasonal winter
lull in home sales, the stage is set for a record-breaking spring in home sales.”

Median Sales Price
– February 2012 median price was up 7.4% to $145,000 compared to $135,000 in January 2012 and down
9.9% from the February 2011.
– Median price is defined as the mid-point, where, for the time period identified, the price for one-half of the
sales are higher and one-half are lower.

Price per Square Foot Solds
– Price per square foot is at $85.93.
– Price per square foot by area groups, as provided in the Detailed Report, is a good way to compare
similar homes for current value.

Number of Units Sold
– February ended the month with 453 sold transactions, up 1.6% from the prior month.
– Sales are up 17.1% from the same period last year.

Average Days on Market
– The average days on market are 132 days, down 9% from January 2012.

Day on Market (DOM) by Special Conditions
– Short sales continue to influence the average days on market at 207 DOM.
– Properties with no special conditions 118 DOM and Other had 72 DOM.
– REO properties average days on market remain stable at 93.

New Listings
– 512 new listings were taken in February compared to 577 in January, an 11.3% decrease and an 18.2%
decrease from February 2011.

Distressed New Listings by Special Conditions
– 64% of new February listings were distressed – 42% (216) Short Sales; 22% (112) REO; No special conditions
34% (176) and Other less than 2% (8).

Status of Pending
– Active Pending – Short Sales represent 62.3% of the total active pendings; Active Pending Loan equals 16.6%;
Pending No-show represents 16.1%; Active Pending call 4.8%; and Active Pending House less than 1%.

Current Months Supply of Inventory (Unsold Inventory ÷ Sales per Month)
– As of February 29, there was 5.4 months of unsold inventory based on the February sales rate.

Historical Months Supply of Inventory
– Historical Months Supply of Inventory shows that February MSI is down to 5.4 months compared to January 2012
at 6.0, and down 63% from February 2011.
– The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.
– Unsold inventory includes Active Pendings. This method of reporting months supply of inventory follows the
industry standard of including all pending sales remaining in active status in the active inventory.

Conclusion
– February 2012 reported unit sales are the highest February in history. February 2012 sales are up 17.1% from
February 2011 unit sales which was the second highest reported unit sales in history.
– The median price rebounded from a low in December to $145,000, up 7.4% from the prior month. With this
rebound we move back into the stabilization of the median price range we had seen starting in May of 2011.
– Washoe County’s unemployment rate trended down in 2011 and is down from 14.2% in January 2011 to 13% in January 2012. This is a positive sign for Washoe County.
– With interest rates at historic low levels and affordable housing prices, the Reno/Sparks record high unit sales support the conclusion that now is a good time to purchase a home.
– According to Fannie Mae’s National Housing Survey from February, Americans’ concerns over housing and the economy are subsiding.
– The Detailed Report is made available to members as a member benefit. Examine the Detailed Report for a morein-depth look into market segments and price points. Both this report and the Detailed Report are provided as avalue added service to members.

Members of the Reno/Sparks Association of REALTORS® are authorized to reproduce and redistribute this copyrighted report. No other reprint or distribution of this report is granted unless specifically approved in writing by the Reno/Sparks Association of Realtors, 5650 Riggins Court, Reno, NV 89502 or email to info@rsar.net. Data Sourced from NNRMLS. Created by NLS under license for RSAR.

As a Reno/Sparks Nevada real estate professional and property manager, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  To checkout some of  my property manager services goto http://chancegates.com/property-management-services/

If you are behind on your house payment and looking for a loan modification, go to making homes affordable

If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

Market Report Commentary

Summary
– “November sales are up 22% over last year and year-to-date unit sales have exceeded 2010 by 10%,” said Kevin Sigstad,
2011 president-elect of the Reno/Sparks Association of REALTORS and a REALTOR with Re/Max Premier Properties. “We have also seen relative stable prices for the past seven months. These are positive indicators for the residential housing market.”

Median Sales Price
– November 2011 median price was up less than 1% to $149,506 compared to $149,000 in October 2011.
– Median price is defined as the mid-point, where, for the time period identified, the price for one-half of the sales are higher and
one-half are lower.

Price per Square Foot Solds
– Price per square foot is at $88.30.
– Price per square foot by area groups, as provided in the Detailed Report, is a good way to compare similar homes for current
value.

Number of Units Sold
– November ended the month with 488 sold transactions, down 1% from the prior month.
– Sales are up 22.3% from the same period last year. November 2011 is the second month of comparing year-over-year figures
without the influence of tax incentives.

Average Days on Market
– The average days on market are 146 days, slightly down from October 2011.

Days on Market (DOM) by Special Conditions
– Short sales continue to influence the average days on market at 222 DOM.
– Properties with no special conditions, and Other are comparatively close at 117 and 113 DOM respectively.
– REO properties average days on market remain level at 96.

New Listings
– 499 new listings were taken in November compared to 516 in October, a 3.3% decrease and an 8% decrease from November
2010.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks Nevada real estate professional and property manager, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  To checkout some of  my property manager services goto http://chancegates.com/property-management-services/

If you are behind on your house payment and looking for a loan modification, go to making homes affordable

If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

From the Reno/Sparks Association of Realtors

Greater Reno/Sparks Area 100

Status of Pending

– Active Pending – Short Sales represent 61.2% of the total active pendings; Active Pending Loan equals 17.7%; Pending No-show

represents 16.2%; Active Pending call 4.5%; and Active Pending House less than 1%.

Current Months Supply of Inventory (Unsold Inventory ÷ Sales per Month)

– As of October 30, there was 6.5 months of unsold inventory based on the October sales rate.

Historical Months Supply of Inventory

– Historical Months Supply of Inventory show that October MSI is down to 6.5 months compared to September 2011 at 6, and down 25% from

October 2010.

– Eight of the past twelve months, the market has been what is defined as balanced. In the past 24 months, the market has remained as

primarily a buyer’s market.

– The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.

– Unsold inventory includes Active Pendings. This method of reporting months supply of inventory follows the industry standard of including

all pending sales remaining in active status in the active inventory.

Conclusion

– October unit sales at 483 are the fourth highest unit sales for a October in history. This number outpaces October 2010 sales by 15%.

October 2010 was the final month of the tax- incentivized period. This is the first month where the year-over-year comparison is not

influenced by the tax credit incentives. Going forward, we will be comparing the year-over-year sales period without the artificial influence of

a tax credit.

– Year-to-date 2011 unit sales (4,862) numbers are up 8% over 2010 unit sales (4,478). We are optimistic that the sales number will outpace

2010.

– October’s median price of $148,500 was down less than 1% from September. The median price has traded in the 4% range for the past six

months. Sales at under $150,000 represented 50% of the total sales for the month. With this trend, it’s understandable why there is

downward pressure on the median price.

– Freddie Mac reported that the 30-year fixed rate loan dropped to 4.07%, compared to 4.11% last month. This is the lowest rate reported

since Freddie Mac began tracking rates in 1971. Sources report that mortgage interest rates should gradually rise from today’s record lows

and reach 4.5 percent by the middle of 2012.

– A qualified homebuyer purchasing a home priced at $150,000 with a 3 ½% down payment, at 4.07% interest rate will have a monthly

payment of approximately $700.00 principal and interest.

– According to Lawrence Yun, NAR Chief Economist, “Housing affordability conditions, based on the relationship between median home

prices, mortgage interest rates, and median family income, have been at a record high this year. Very favorable affordability conditions will

dominate next year as well, which will probably be the second best year on record dating back to 1970. If credit restrictions ease, there is

optimism that it will open the door for more home buyers to take advantage of current opportunities.”

– We continue to monitor the impact on the market due to recent passage of Nevada law requiring more stringent documentation required of

banks in order to perform foreclosures in a timely manner. We may not see any impact on inventory levels as a result of the stringent

requirements on the banks until December. If the banks are able to adapt to the new requirements, we anticipate sales activity will keep

pace with inventory coming on the market.

Members of the Reno/Sparks Association of REALTORS® are authorized to reproduce

and redistribute this copyrighted report. No other reprint or distribution of this report is

granted unless specifically approved in writing by the Reno/Sparks Association of

Realtors, 5650 Riggins Court, Reno, NV 89502 or email to info@rsar.net.

Data Sourced from NNRMLS. Created by NLS under license for RSAR.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks Nevada real estate professional and property manager, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  To checkout some of  my property manager services goto http://chancegates.com/property-management-services/

If you are behind on your house payment and looking for a loan modification, go to making homes affordable

If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

In a welcome sign of strength, existing home sales rose 7.7% in August to a seasonally adjusted annual rate of 5.03 million units from an upwardly revised 4.67 million units in July. The inventory of unsold homes on the market decreased to 3.577 million, an 8.5-month supply at the current sales pace, down from a 9.5-month supply in July.

The National Association of Home Builders/Wells Fargo monthly housing market index fell one point in September to 14. An index reading below 50 indicates negative sentiment about the housing market.

Retail sales fell 1.2% for the week ending September 17, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3.4%.

The combined construction of new single-family homes and apartments in August fell 5% to a seasonally adjusted annual rate of 571,000 units. Single-family starts decreased 1.4%. Multifamily starts fell 13.5%. Applications for new building permits, seen as an indicator of future activity, rose 3.2% to an annual rate of 620,000 units.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending September 16 rose 0.6%. Refinancing applications increased 2.2%. Purchase volume fell 4.7%.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 0.3% in August, following a 0.5% increase in July.

Initial claims for unemployment benefits fell by 9,000 to 423,000 for the week ending September 17. Continuing claims for the week ending September 10 fell by 28,000 to 3.7 million.

Upcoming on the economic calendar are reports on new home sales on September 26, the housing price index on September 27 and pending home sales on September 29.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

Image via Wikipedia

 Summary:
– “Washoe County sales are the highest they have been for an August since August 2005,” said Sherrie Cartinella,
2011 president of the Reno/Sparks Association of REALTORS and a REALTOR with Coldwell Banker Select Real
Estate. “This paired with the fact that median sales prices are up and continue to settle indicates we just may be at
the bottom. Market conditions, of course, will continue to be influenced by high unemployment . Although there
are media reports of a ‘double dip’ recession, the current median sales price and historic low interest rates make
this a good time to buy, especially for those that have been on the fence!”
 Median Sales Price
– August 2011 median price was up 2.7% to $154,000 compared to $150,000 in August 2011.
– Median price is defined as the mid-point, where, for the time period identified, the price for one-half of the sales are
higher and one-half are lower.
 Price per Square Foot Solds
– Price per square foot is at $94.14.
– Price per square foot by area groups, as provided in the Detailed Report, is a good way to compare similar homes
for current value.
 Number of Units Sold
– August ended the month with 528 sold transactions, up 4.3% from the prior month.
– Sales are up 17.3% from the same period last year. August 2010 continued to be influenced by the First Time
Home Buyer tax credit.
 Average Days on Market
– The average days on market are 127 days, down 0.7% from July 2011.
 Day on Market (DOM) by Special Conditions
– Short sales continue to influence the average days on market at 198 DOM.
– Properties with no special conditions, REO, and Other show a range of between 89 and 100 DOM.
 New Listings
– 727 new listings were taken in August compared to 699 in August, a 4% increase.
 Distressed New Listings by Special Conditions
– 66% of new August listings were distressed – 263 Short Sales, 218 REO, No special conditions 236 and other 10.
– NNRMLS implemented a recent change in the reporting of Fannie Mae, Freddie Mac and HUD re-possessed
listings as Real Estate Owned (REO), August new listings by special conditions reflect a more accurate picture.
– REO listings represented 30% of the market; Short Sales 36%; No special conditions 32.5%, and Other 1%. The
market remains dominated by distressed new listings representing 66% of the market

 Status of Pending
– Active Pending – Short Sales represent 57.7% of the total active pendings; Active Pending Loan equals 19.3%; Pending Noshow
represents 18.2%; Active Pending call 4.5%; and Active Pending House less than 1%.
 Current Months Supply of Inventory (Unsold Inventory ÷ Sales per Month)
– As of August 31, there was 6.4 months of unsold inventory based on the August sales rate.
 Historical Months Supply of Inventory
– Historical Months Supply of Inventory show that August MSI is down to 6.4 months compared to August 2011 at 6.6 and down
24% from August 2010.
– Six of the past twelve months, the market has been what is defined as balanced. In the past 24 months, the market has
remained as primarily a buyer’s market.
– The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.
– Unsold inventory includes Active Pendings. This method of reporting months supply of inventory follows the industry standard
of including all pending sales remaining in active status in the active inventory.
 Conclusion
– August unit sales are the second highest unit sales for an August in the history of tracking the information though the MLS.
This number outpaces August 2010 sales which continued to be influenced by the tax credit. August 2011 sales numbers are
only outperformed by August 2005 (595).
– August 2005 showed the early sign of the collapse of the boom when median sales price began its decline. Unit sales began
to improve in 2007. It wasn’t until May 2008 the rapid decline in pricing began to show into what we are currently seeing in the
market.
– Year-to-date 2011 unit sales (3774) numbers are up 5% over 2010 unit sales (3592). We are cautiously optimistic that the
sales number will continue to perform on its own (without government incentives) and outpace 2010.
– August’s median price of $154,000 was up 2.7% over July. There was some artificial stabilizing in the median price during the
tax credit influenced period. After the final deadline of September 2010, we have seen a continued decline in the median
price. Savvy buyers with stable jobs and investors are seeing this as an excellent time to buy. It’s time to get off the fence.
– For the past 40 years, interest rates have never been at the current record lows and are predicted to remain low into 2013.
– The average 15-year fixed rate loan dropped to 3.3%. This is the lowest level since 1991, when mortgage giant Freddie Mac
began tracking it. Freddie Mac also reported that the 30-year fixed rate loan dropped to 4.09%, a new low for 2011.
– Mortgage specialists say to get the best rates consumers must have a minimum FICO credit score of 720 or 740 out of a
possible 850. A tough challenge for even the most qualified buyers.
– The Detailed Report is made available to members as a member benefit. Examine the Detailed Report for a more in-depth
look into market segments and price points. Both this report and the Detailed Report are provided as a value added service to
members.

Members of the Reno/Sparks Association of REALTORS® are authorized to reproduce
and redistribute this copyrighted report. No other reprint or distribution of this report is
granted unless specifically approved in writing by the Reno/Sparks Association of
Realtors, 5650 Riggins Court, Reno, NV 89502 or email to info@rsar.net.
Data Sourced from NNRMLS. Created by NLS under license for RSAR.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

Thanks to my friends at Prospect Mortgage http://www.myprospectmortgage.com/yfoster/

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending September 9 rose 6.3%. Refinancing applications increased 6%. Purchase volume rose 7%.

The producer price index, which tracks wholesale price inflation, was unchanged in August after a 0.2% increase in July. For the year, seasonally adjusted wholesale prices are up 6.5%. Core prices — excluding food and fuel — rose 0.1% in August.

Retail sales were unchanged in August after a downwardly revised 0.3% increase in July. On a year-over-year basis, retail sales rose 7.2%.

Total business inventories rose 0.4% in July to $1.526 trillion, up 10.6% from a year ago. Total business sales increased 0.7% to $1.197 trillion in July, up 12% from a year ago. The total business inventories/sales ratio in July was 1.27.

Consumer prices rose a seasonally adjusted 0.4% in August, following a 0.5% increase in July. For the year, seasonally adjusted consumer prices are up 3.8%.

Industrial production at the nation’s factories, mines and utilities rose 0.2% in August. Compared to a year ago, industrial production is up 3.4%. Capacity utilization rose to 77.4% in August from a revised 77.3% in July.

The Reuters/University of Michigan consumer sentiment index for September’s preliminary reading rose to 57.8 from 55.7 in August. The August reading had been the lowest level since 55.3 set in November 2008.

Initial claims for unemployment benefits rose by 11,000 to 428,000 for the week ending September 10. Continuing claims for the week ending September 3 fell by 12,000 to 3.7 million.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

http://www.realtor.org/rmodaily.nsf/f3c66d0c6457c1e1862570af000cb13b/c615c2ff2b23951c862578c4004f1789?OpenDocument&cid=WR07062011:22822&ed_rid=1698691

How much a home buyer should have a for a down payment on a home has been up for dispute among policymakers. Some recent federal regulators and lawmakers calling for a 20 percent or 10 percent down payment in order for mortgages to be considered a “qualified residential mortgage” and not subjected to extra fees.

However, such stringent down payment requirements could price many home owners out of the housing market, argues a growing number of consumer housing advocates. (Read more about the National Association of REALTORS®’ stance).

In fact, for many creditworthy home buyers in occupations that don’t boast high median salaries, they might have to wait a decade or even longer to meet the down payment rule.

The Center for Responsible Lending, which has argued that 10 percent or 20 percent down payment requirements are too high, has a chart on its Web site boasting the length of time it would take borrowers of different occupations to save enough for a 10 percent down payment on a 2010 median-priced $172,900 home.

▪ U.S. Army Staff Sergeant: 16 years (median salary: $30,176)
▪ Public school teacher: Nearly 15 years (median salary: $33,530)
▪ Firefighter: 10 years (median salary: $47,730)
▪ Police officer: Nearly 9 years (median salary: $55,620)

“We’re not advocating for zero percent down,” Kathleen Day, spokesperson for the Center for Responsible Lending, told The New York Times. “We think down payments are good. But we think the market should set them, based on the underwriting.” (That is, based on the borrower’s credit history and income and debt levels.)

The down payment proposal comes as part of new rules for mortgage lenders in the Dodd-Frank law. Federal agencies are trying to set criteria for what should be considered a reasonably safe mortgage or QRM. Lenders issuing a QRM will be able to sell the loan to an investor and avoid retaining any of the risk. However, lenders will consider non-QRMs more risky since they’ll have to retain a 5 percent ownership. (Loans insured by the Federal Housing Agency would be exempt.) For borrowers who are unable to meet QRM, they would have to pay more for their loans because lenders would have to boost interest rates on their loans to cover the extra costs.

What You Can Do

Lawmakers have extended the public comment on the new down payment rules to Aug. 1. The REALTOR® Action Center has issued a call for real estate professionals to help ensure their clients have access to affordable mortgages. To send a letter to your state lawmakers, visit REALTOR.org.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney

Status of Pending
– Active Pending – Short Sales represent 58% of the total active pendings; Active Pending Loan equals 18%;
Pending No-show represents 18%; Active Pending call 5%; and Active Pending House less than 1%.

Absorption Months Supply of Inventory (Unsold Inventory ÷ Sales per Month)
– As of May 31, there was 6.8 months of unsold inventory based on the May sales rate.

Historical Months Supply of Inventory
– Historical Months Supply of Inventory show that May MSI is down 1.2 months from April and May 2010.
– In the past twelve months, there have been five months which have fallen into what is defined as a balanced
market. In the past 24 months, the market has remained as primarily a buyer’s market.
– The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.
– Unsold inventory includes Active Pendings. This method of reporting months supply of inventory follows the
industry standard of including all pending sales remaining in active status in the active inventory

Conclusion
– May 2011 median home price of $149,700 is the lowest the Reno area has seen since 2000.
– May 2011 closed sales numbers set a near record as being the second best May for single family sales number in
history.
– Year-to-date 2011 unit sales numbers continue to out-perform 2010 unit sales by 2%.
– In May, the “Bank-owned” sales category held the dominant share of the market with 40% of the closings.
– The affordability door is open to a wider range of buyers. This means that a two-income, household earning
approximately $10 per hour each, can now afford the median priced home in the Reno/Sparks area.
– Mortgage rates are at historic lows. Rates are predicted to move up before year end. For those with stable jobs
and who expect to stay in their home long-term, it’s an excellent time to buy.
– The number one market requirement for Nevada is jobs!
– For buyers, it’s buyer confidence and credit worthiness to qualify for financing under stricter underwriting
guidelines.
– At current median prices, the dream of homeownership has never been more affordable.
– The Detailed Report is made available to members as a member benefit.

Members of the Reno/Sparks Association of REALTORS® are authorized to reproduce
and redistribute this copyrighted report. No other reprint or distribution of this report is
granted unless specifically approved in writing by the Reno/Sparks Association of
Realtors, 5650 Riggins Court, Reno, NV 89502 or email to info@rsar.net.
Data Sourced from NNRMLS. Created by NLS under license for RSAR.

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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney

http://www.realtor.org

On May 18, 2011, the Treasury Department released an update to the Making Home Affordable Program (MHA) that becomes effective September 1, 2011. The update directs participating servicers with a participation cap of $75,000,000 or more to establish and implement a process through which borrowers that are potentially eligible for HAMP, Home Affordable Unemployment Program (UP) or Home Affordable Foreclosure Alternatives Program (HAFA) are assigned a relationship manager. The relationship manager will serve as the homeowner’s single point of contact and will promote compliance with MHA program requirements and timelines between all parties until all available home retention and non-foreclosure liquidation options have been exhausted. No later than the effective date of this Supplemental Directive, the servicer must assign a relationship manager to a delinquent borrower or a borrower who requests consideration under imminent default immediately upon the successful contact with the homeowner and the determination that the servicer will consider the homeowner for HAMP, UP or HAFA. Relationship managers must provide written notice to the borrower within five business days of the assignment, which must include a toll-free telephone number and at least one other method by which the borrower may directly contact the relationship manager, as well as the preferred means by which documents should be delivered by the borrower to the servicer. This update does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac.

Additional information on the MHA updates can be found in Supplemental Directive 11-04.

Making Home Affordable Supplemental Directive 11-04

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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney