1. Low supply but a lot of inventory to choose from (?!)
This was a year of contradictions. If you look at the chart above, supply is at an all time low; but then I go out in the real world to show houses to buyers and there are 3-8 really nice homes to choose from (even in high demand neighborhoods). It continues to baffle me.
I get it -- it's a buyer's market, but how can you explain the surge in supply even at the always dependable South Reno? High end homes sure, the future still looks bleak, but in the lower $200,000 and below price range too, in desirable areas??
That even in the generally high demand areas of Reno, (Like the Damonte & South Meadows) it experienced an overflow of supply of homes. Don't get me wrong there is demand, but there is also a lot of supply.
At the end of the day history shows us that a healthy real estate market is a healthy supply and demand. Perhaps this 'bad thing' is preparation for good times ahead. Go figure. A year of contradictions, indeed.
2. Reno Foreclosure tide rises at a slower pace
2010 was the year of constants in the Reno foreclosure market. It's been going sideways for the past two and a half years. Foreclosures in Northern Nevada hasn't gone up as fast it it used to, going on a constant sideways motion for the last two years (with cyclical summer ups and winter downs).
But there no signs either that it will go anytime soon.
Nevada still ranks number one in the country in foreclosures -- 64,429 foreclosure filings in the first half of 2010, which means one filing for every 17 households, or 5% of housing units in our state. Nevada's foreclosure rate was 5 times the national average. Most of these foreclosures came from Southern NV (Las Vegas),
There were 100 foreclosed homes in Reno last November; last year of the same month, it was 98, a mere difference of 2.04%. Sales of foreclosed homes actually went down 14.05% vs last year -- from 121 to 104.
Part of the reason may be caused by banks temporarily halting foreclosure filings, "These errors included submission of affidavits that were improperly reviewed en masse by so-called robo-signers." This spawed a firestorm of criticism for companies like Bank of America and GMAC mortgage.
The banks also said that "foreclosure proceedings would regain speed in January." Who knows how much foreclosure inventory banks have in their pockets, for now it's better to assume that they have a lot. The good side of this story is we have a surging demand to help keep inventory in check.
3. Reno Median Home Prices Down just -5.69% from 2009 (last twelve months vs previous twelve months).
Perhaps one of the better news of 2010 is improving home prices, still negative, but in much better shape than in 2009:
4. Monthly home mortgage in Reno costs as much as rent.
Last summer, my sister in law bought a nice 3-bedroom home at North Reno for $125,000. Their monthly mortgage is about $850. The average rental for a 2-bedroom apartment in Reno is $819.
This is good news for the Reno real estate market on three counts:
5. Surging buyer demand for Reno real estate
One thing that has remained constant the last five years: growth of buyers in the Reno real estate market. The further prices have gone down, the more buyers we seem to get.
Here's a brief overview:
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