Chance Gates' Blog

Sales

Below is a summary of the October market conditions

• • October ended the month with 553 sold transactions up 9% from the prior month. Sales were up 59%

over the same period last year.

• • Sales Mix:

o Bank Owned unit sales were down in October to 181 as compared to 189 in September. Bank

owned sales represent 33% of the sales, down from 37% in September.

o Short Sales were at 134 in October, up from 125 reported in September. Short sales represent

24% of the mix in October as compared to 25% in September.

o No Special Condition (None) sales increased in October to 198 as compared to 155 in

September. Sales reported as “No Special Condition” represented 36% of the sales, up from

31% reported in September.

Median Price

• • October 2009 median price was down 3% to $180,000 compared to $186,000 in September 2009.
• • Median price is defined as the mid-point, half of the sales for the time frame (October) are below and

half are above

Sales by Price Point

• •The number of sales in the under $150,000 price range has increase for

three consecutive months – October (194 sales), September (178 sales) and August (166 sales). There

was an increase in sales $151,000 – $200,000 for October (134 sales) compared to September (113

sales); $201,000 – $250,000 for October (91 sales) compared to September (94 sales).

• • 34 closings were over $450,000. In the over $450,000 price range, 6 of the closings were Short Sales

and 6 were Bank Owned.

Pendings

• • There were 652 new Active Pending sales reported for the month of October, up 3% from the prior

month.

• • 79% percent of October pendings are distressed (short sale and bank owned).

Listings

• • 614 new listings were taken in October compared to 709 in September, a 13% decrease.
• • The percentage of “Distressed” new listings was up 3%. 61% of new October listings were distressed -

225 Short Sales, 147 Bank Owned.

Source  http://rsar.net/uploaded/documents/RSAR%…

Too many people now of days are getting those irritating phone calls from debt collectors. Other are just barely making the monthly mortgage payments on a house they owe more on, than its worth.

Don’t walk away and let the house go into foreclosure. This will prevent someone from being able to buy another house for at least 4 years.   Plus the money the lender loses on the resale of the foreclosure, the IRS counts as earn income and my charge taxes on the difference.

If a home owner is a couple months behind with his mortgage payment here is a couple of things he can do to keep his house. First call the bank to see if they will refinance the loan.  If the bank is not cooperating don’t threaten to walk away from the house. The second thing to do is for the home owner to go see his senator.  He might be able to help get the bank to refinance you house. The Senator might even get them to reduce the principle of the loan to be comparable with Reno/Sparks Nevada Real Estate prices.

If steps one or two doesn’t work or if a person doesn’t want to live in the house. Sell the house for less than owed. This is called a short sale. This will allow a person to buy another house in two years instead of four. It is still advisable to see a lawyer and a CPA to make sure the debt is forgiven and the IRS doesn’t tax the seller on the forgiven debt. I would NOT recommend taking on a short sale purchase without your own representation of a knowledgeable licensed Nevada Real Estate Agent.