Chance Gates' Blog

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.

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.

http://realtormag.realtor.org/daily-news/2011/09/26/beware-legal-pitfalls-foreclosures-short-sales?cid=WR09292011:30262&ed_rid=1698691

Short sale and foreclosure transactions can be fraught with potential legal problems for real estate professionals. And as the number of these transactions continues to skyrocket, agents need to be careful, Stella Ling, managing senior counsel of the California Association of REALTORS®, told a crowd at CAR’s REALTOR® Expo last week.

Short sales success rate is only about 50 percent, Ling said, so “the best thing to do is to prescreen the short-sale listings.” For example, she encouraged agents to look for home owners who have refinanced in the mid-2000s and to avoid listings where a second trustee lender can come back for a deficiency through a judicial foreclosure or might not agree to a short sale. Ling also recommends checking to see if the seller has considered a bankruptcy.

Another danger she points to is “reverse staging.” With reverse staging, sellers trash the property in order to devalue the property. Ling says real estate professionals should ensure sellers don’t do any damage and if they suspect any, they should reconsider proceeding with the transaction.

“If a seller does reverse staging, destroying their own home, what else are they going to do? What other misrepresentations are they going to make?” Ling told the crowd of real estate professionals.

Ling also suggests when handling REO transactions that real estate professionals read the REO addendum carefully that lenders often add to the purchase contracts. Oftentimes, these addendums make buyers give up a lot of their rights, she notes.

Source: “Avoiding the Legal Pitfalls of Distressed Real Estate,” Inman News (Sept. 23, 2011)

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.com 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 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.guinnessworldrecords.com/most-cosmetic-procedures/

Cindy Jackson (USA) has spent $99,600 (£53,148) on 47 cosmetic procedures, including nine full-scale surgical operations since 1988. These have included three full facelifts, two nose operations, two eye lifts, liposuction, knees, waist, abdomen, thigh and jawline surgery, lip and cheek implants, chemical peels, chin bone reduction and semi-permanent make-up

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://realtormag.realtor.org/daily-news/2011/08/26/banks-agree-more-short-sales?cid=WR08312011:27896&ed_rid=1698691

Banks are agreeing to more short sale transactions, and short sales are taking less time to sell, which is helping to clear large inventories of distressed properties more efficiently, says James J. Saccacio, RealtyTrac CEO, in releasing new housing data this week.

“This is a glimmer of hope that lenders are getting more realistic,” Rick Sharga, senior vice president of RealtyTrac, told Bloomberg News. “It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”

During the second quarter, the number of homes nearing foreclosure accounted for 12 percent of total home sales, with banks agreeing to more transactions at prices below the outstanding mortgage balance, RealtyTrac reported in releasing its second quarter data this week.

What’s more, pre-foreclosure homes took an average of 245 days to sell after receiving the initial foreclosure notice–that’s down from 256 days in the first quarter, RealtyTrac reports.

Sales of homes in the foreclosure process or short sales sold on average for a 21 percent discount–or an average sales price of $192,129–compared to the sales price of non-distressed homes.

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

www.realtor.org
On Tuesday, April 12th, 2011, Representatives Tom Rooney (R-FL) and Robert Andrews (D-NJ) introduced H.R. 1498, the “Prompt Decision for Qualification of Short Sale Act of 2011″. This legislation makes it mandatory for mortgage servicers to reply to a short sale application within 45 days of submission. If the servicer fails to provide a decision to the short sale applicant within that time period, the application is deemed approved. NAR has heard from many of our members nationwide that the length of time for a decision on a short sale application remains a significant impediment for this foreclosure mitigation option. It is the NAR’s hope that this legislation will not just shine a light on the short sales issue, but establish a mechanism for the development of an appropriate solution.

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.

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.

www.realtor.org

Image via Wikipedia

A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

Why is the number of short sales rising?

Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.

A short sale can also be the best option for a homeowners who are “upside down” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially

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 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. 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.

A true man of honor feels humbled himself when he cannot help humbling others.

Do your duty in all things. You cannot do more, you should never wish to do less.

Get correct views of life, and learn to see the world in its true light. It will enable you to live pleasantly, to do good, and, when summoned away, to leave without regret.

I cannot trust a man to control others who cannot control himself.

I have been up to see the Congress and they do not seem to be able to do anything except to eat peanuts and chew tobacco, while my army is starving.

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.