Chance Gates' Blog

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.

By: G. M. Filisko

http://members.houselogic.com/articles/8-tips-finding-your-new-home/preview/

Published: February 10, 2010

A solid game plan can help you narrow your homebuying search to find the best home for you.

1. Know thyself

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline

Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

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.

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 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.

http://members.houselogic.com/articles/escrow-accounts-whats-deal/preview/

By: Susan B. Weiner

Published: October 22, 2010

Does your escrow account ever cross your mind? Probably not. But forgetting to monitor it can lead to lost money and a big headache.

Escrow accounts: lenders love them; you might not

As handy as they are, you’ll find some significant hitches:

• You lock up your money before your tax and insurance payments are due, since your lender is taking the money out each month, often long before the tax payment is actually due.

• Your lender usually doesn’t have to pay you interest on your escrow account—it varies by state.

• Your lender may screw up paying taxes or insurance, and even though it has to fix mistakes, you have to make the time and effort to follow up.

• There may be tax advantages to timing your property tax expenses—but you can’t do that if you’re paying a flat fee in escrow each month.

But your lender may insist on an escrow account because it:

• Helps guarantee your insurance and taxes will be paid.

• Ensures your lender will get the first claim on your house if you default, ahead of the local government.

In fact, your lender may do you the honor of charging you a flat fee for opting out of an escrow account, or it will add 0.25% to 0.5% to the loan amount if you decline to use an escrow account.

How to manage your escrow account

Your lender has to give you an annual escrow account statement and refund any available balance when you sell your house or refinance your mortgage. Check your escrow account statement carefully:

• Make sure everything adds up. “If I have my escrow statement, my property tax bill, and my homeowner insurance declaration page, and everything matches up, then I’m fine,” says Debbie Siegel, president of Westchester Mortgage in Newton, Mass.

• Check the size of the escrow account. Lenders are allowed to keep a reserve of no more than two months in payments in most states, and in some situations it’s even less. Your REALTOR® or lawyer can give you the skinny in your case.

• Contact your lender in writing if you find a problem in your escrow account. If your lender missed an insurance payment, it should pay any late fees as long as your mortgage payments are current, according to the U.S. Department of Housing and Urban Development. If your insurance is canceled as result of your lender’s late payment, you can sue your lender.

• Know your rights. Your lender must acknowledge your letter within 20 days and try to fix your problem within 60 days. If you’re still not satisfied, file a complaint with HUD.

Don’t worry, however, if your escrow account balance is temporarily negative. It’s probably due to a recent increase in your taxes or insurance. Your lender will pay your taxes and insurance, although you will need to reimburse your lender for the shortfall.

A final word: Usually basic home owners insurance will be paid out of an escrow account. If you have extra coverage for your original Matisses, for example, you may need to pay that premium directly to your insurer.

Susan B. Weiner has written on financial topics for Bottom Line/Personal, Financial Planning, Wealth Manager, and other national publications for more than 15 years. She learned firsthand that when your house combines two lots, your escrow account may initially fail to pay the tax bill on the second lot.

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.

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

Market Report Commentary

Absorption Months Supply of Inventory (Unsold Inventory ÷ Sales per Month)
– As of April 30th, there was 7.8 months of unsold inventory based on the April sales rate.
– Historical Months Supply of Inventory show that April MSI is up 1.4 months from March and up one month from
April 2010.
– In the past twelve months, there have been four 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
– We continue to compare this April, with the market performing on its own, to last April’s Median Sales Price which
was influenced by the First Time Homebuyer tax credit. Looking at the period mid-2005 through March 2009, it’s
encouraging that we have not seen the rapid decline in pricing, but from that period forward there continues to be
some settling in pricing.
– April 2011 median home price of $155,000 is the lowest the Reno area has seen since 2000.
– April 2011 unit sales, although down from the prior month and the prior year, is still performing at near record
levels.
– Year-to-date 2011 sales are 13 sales ahead of 2010.
– In April, 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.
– Closed sales numbers in April set a near record as being fifth best April for single family sales number in history.
– 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.
– Inflation is hitting consumer pocket books in the form of increased gas and food prices. Fuel costs may have a
greater impact on the rural areas surrounding the Reno/Sparks market, including the Fernley market, as
consumers consider the cost to commute.
– The number #1 Job for Nevada is jobs!
– The Detailed Report is made available to members as a member benefit.

Logging in allows you to save your favorite properties and get instant updates price changes,  new pictures and open houses on the property.

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.

With affordability at an all-time high, the number of investors and international buyers taking advantage of bargains has reached a record number in all-cash purchases — and some experts predict that number will only grow higher.

A record 33 percent of existing-home sales were made to cash buyers in February, the National Association of REALTORS® recently reported. The proportion of cash deals could hit 40 percent by the end of this year, predicts Thomas Popik, research director for Campbell Communications in Washington, which conducts monthly surveys of 3,000 real estate brokers.

“Lenders have only been willing to lend to the cream of the crop in terms of credit scores,” says Walter Molony, an NAR spokesman. “As a result, you’re seeing a depressed level of traditional buyers.”

But it’s not just investors moving in: Many of these cash deals are also coming from a growing number of international buyers. About 55 percent of international buyers paid cash for their U.S. homes, according to an April 2010 report by NAR.

The Cash Buyer Advantage?
Cities where about half of all purchases were done with cash include Detroit, Miami, Las Vegas, and Phoenix, in which prices have dropped considerably and foreclosure rates remain high, says Oliver Chang, a housing market analyst with Morgan Stanley.

Short sales and foreclosures accounted for 59 percent of last year’s cash sales, according to a report by Morgan Stanley.

“You buy the house at a discount with cash. Then you flip it almost immediately to the first-time home buyer who’s using a mortgage, simply because they were not able to buy at the foreclosure sale,” Chang says.

Lenders increasingly reject mortgage applications for foreclosed properties because appraisals are often too far below the agreed-upon price or the transactions take too long to close, says Popik.

With tightened lending standards, cash purchases can provide buyers with more leverage and allow buyers to close properties more quickly.

Mike Simmons Troy, a Detroit real estate investor, says that if a house is listed at $40,000 and a buyer offers $35,000 cash, “nine times out of 10, the bank will take the cash.”

Source: “Cashing in on Bargains,” Detroit Free Press (April 10, 2011)

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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.

Summary:
– “The year has started on the right foot with a continued lateral trend in year-over-year median sales price,” said Sherrie Cartinella,
2011 president of Reno/Sparks Association of REALTORS and a REALTOR with Coldwell Banker Select Real Estate. “With a less
volatile price movement, both buyers and sellers can anticipate and plan appropriately with a sense of stabilization in the market.
We experienced the second highest number of unit sales for the month of January in the past decade. Although it was a drop in
sales month over month, we can attribute the drop in numbers to the fact that many buyers rushed to purchase a home in
December for the tax implications. It is fairly normal to see month-over-month decrease in unit sales from December to January.”

Median Sales Price
– January 2011 median price was down 3.1% to $159,950 compared to $165,000 in December 2010.
– The median sales price has remained relatively stable for the past twenty months.
– Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Number of Units Sold
– This January’s unit sales are the second highest January in the past decade.
– January ended the month with 350 sold transactions, down 26.5% from the prior month.
– Sales were up 1.2% over the same period last year.
– We have continued to see an increase in January year-over-year sales for the fourth consecutive January.

Average Days on Market
– The average days on market are 151 days, up 4.8% from December 2010.

Sold-to-asking-price Ratio
– January reported sales received an average of 96.6% of the seller’s final asking price.

Conclusion
– Mortgage rates, although inching up, remain at historic low rates. Recent rate increases from 4.5% on a 30 year fixed to 5.0%
should be an incentive to move buyers from just thinking about buying in today’s market to getting off the fence and doing it. The
impact of an increase in interest rates is about $60 per month on a $200,000 mortgage. Current predictions are for rates to inch up
this year.
– Median home prices ended the year at a new low – down $7,050 from last January and at 2000 – 2001 prices.
– The size of the active inventory in January, net of any pending sales, remained virtually the same as December with 1,966 single
family homes available for sale in the greater Reno/Sparks area.
– Closed sales numbers in January set records as being the second highest January sales number in the past decade.
– The mix of closed sales in January has shifted again with a 9 percentage point increase in the number of Short Sales over
December to 39% at the expense of the No Special Conditions and Bank Owned categories.
– The fact that so much of our inventory consists of homes for sale by distressed sellers is a short version summary of our market.
The employment picture is the key to shutting off the supply of new distressed listings entering our market each month.

reprinted with permission by the Reno/Sparks Association of REALTORS®.”

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.

Existing-home sales rose sharply in December, when sales increased for the fifth time in the past six months, according to the National Association of REALTORS^®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 12.3 percent to a seasonally adjusted annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9 percent below the 5.44 million pace in December 2009.

Lawrence Yun, NAR chief economist, said sales are on an uptrend. “December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery,” he said. “The December pace is near the volume we’re expecting for 2011, so the market is getting much closer to an adequate, sustainable level. The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability conditions remain.”

The national median existing-home price for all housing types was $168,800 in December, which is 1.0 percent below December 2009. Distressed homes rose to a 36 percent market share in December from 33 percent in November, and 32 percent in December 2009.

“The modest rise in distressed sales, which typically are discounted 10 to 15 percent relative to traditional homes, dampened the median price in December, but the flat price trend continues,” Yun explained.

Inventory Levels
Total housing inventory at the end of December fell 4.2 percent to 3.56 million existing homes available for sale, which represents an 8.1-month supply at the current sales pace, down from a 9.5-month supply in November.

NAR President Ron Phipps said buyers are responding to very good affordability conditions despite tight mortgage credit. “Historically low mortgage interest rates, stable home prices, and pent-up demand are drawing home buyers into the market,” Phipps said. “Recent home buyers have been successful with very low default rates, given the outstanding performance for loans originated in 2009 and 2010.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.71 percent in December from 4.30 percent in November; the rate was 4.93 percent in December 2009.

Transaction Types
A parallel NAR practitioner survey shows first-time buyers purchased 33 percent of homes in December, up from 32 percent in November, but are below a 43 percent share in December 2009.

Investors accounted for 20 percent of transactions in December, up from 19 percent in November and 15 percent in December 2009; the balance of sales were to repeat buyers. All-cash sales were at 29 percent in December, compared with 31 percent in November, but up from 22 percent a year ago. “All-cash sales have been consistently high at about 30 percent of the market over the past six months,” Yun said.

Single-family home sales jumped 11.8 percent to a seasonally adjusted annual rate of 4.64 million in December from 4.15 million in November, but are 2.5 percent below the 4.76 million level in December 2009. The median existing single-family home price was $169,300 in December, down 0.2 percent from a year ago.

Existing condominium and co-op sales surged 16.4 percent to a seasonally adjusted annual rate of 640,000 in December from 550,000 in November, but remain 5.2 percent below the 675,000-unit pace one year ago. The median existing condo price was $165,000 in December, which is 7.4 percent below December 2009.

Performance by Region
Regionally, existing-home sales in the Northeast jumped 13.0 percent to an annual pace of 870,000 in December but are 5.4 percent below December 2009. The median price in the Northeast was $237,300, which is 1.4 percent below a year ago.

Existing-home sales in the Midwest rose 11.0 percent in December to a level of 1.11 million but are 4.3 percent below a year ago. The median price in the Midwest was $139,700, up 3.3 percent from December 2009.

In the South, existing-home sales increased 10.1 percent to an annual pace of 1.97 million in December but are 2.5 percent below December 2009. The median price in the South was $148,400, unchanged from a year ago.

Existing-home sales in the West surged 16.7 percent to an annual level of 1.33 million in December but remain 1.5 percent below December 2009. The median price in the West was $204,000, down 5.6 percent from a year ago.

NAR

http://www.realtor.org/RMODaily.nsf/pages/News2011012001?OpenDocument

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.com or  http://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 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. For a free copy of my blog titled  “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.