Real Estate Information

May ended with 413 sold units, exactly equal to the prior month. Sales were up 35% over the same period last year. This was the first month in 2009 where sales have not increased month to month.

Of the total number, 60 were short sales,209 bank owned and 144 regular sales. This means that 64% of properties sold in May had special conditions compared to 71% in April.

May saw a 6.9% drop in median price. May over April 2009, sales continue to rise in the under $150,000 price range which would account for the drop in median price for the month.

Based on a Historical Median Trend Line with a 4.2% Affordability Index in the Reno100 area, 2009 DEBUTS WITH AN UNDERVALUED MARKET FOR THE FIRST TIME IN 7 YEARS!!!

There were 698 new Active Pending sales reported for the month of May down 6.6% from the previous month. 76% of the pendings are in the distressed category.

There were 664 new listings taken in the month of May, a 2% increase from April 2009. 374 of the new listings were Short Sales or Bank Owned. The percentage of "Distressed" new listings went down 2% from 57% in April to 55% in May.

As of May 31, 2009, we had 8.0 months of inventory based on the 31 day May sales rate. The Months Supply of Inventory (MSI) crept up for the month of May from the 7.9 MSI seen in April. Similar inventory levels based on absorption have not been seen since December 2005. The National Association of Realtors describes a balanced market as between 5 and 7 months supply.

*The data covers "stick-built" single family residences listed in the Northern Nevada Regional Multiple Listing Service Reno100 market that covers Reno, Sparks, North Valleys, Spanish Springs, Washoe Valley, Virginia City Highlands and Lockwood-basically Washoe County without Incline Village.

California median home prices are on the rise.  This is the 2nd month that the median price of a California home has gone up.  Could this be THE bottom or just A bottom?  Many people leave California for other western states that offer a quality lifestyle at a more affordable price with lower taxes, lower housing prices etc.  The Reno real estate market needs people moving from California looking to purchase a home in our area.  As median prices rise in California this enables more people to consider a relocation out of California.  This is good for the Nevada economy.

Let's hope that the median home price trend continues on an upward path over the next several months.

Reno is loaded with activities year round and gets especially active in the summer.  Here is a list of 10 events that are worth going to this summer.   There are many other events that are taking place this summer so this is my top ten list.

1)  Reno Rodeo - The wildest, richest rodeo in the west.  Currently taking place June 16th through June 27th.  Cowboy or Cowgirl up and go have some fun.  There is something at the rodeo for all ages.

2)  Hot August Nights - One of the biggies in Reno it is the largest classic car show in the US.  Great cars, great music, a great time.  Jump back in time to those great years in the 50's and 60s.  July 31st through August 9th.

3)  Legends Reno-Tahoe Open - A great chance to go to a PGA golf tournament in our own back yard at Montreux.  Come and see some of the best professional golfers on the planet show their stuff.  August 6th through August 9th.

4)  Art Town -  A month long celebration of all that the Arts have to share in Reno.  Activities for the whole family.  Music, dance, art, and more.  J.uly 1st through July 31st.

5)  Reno Aces Baseball - Take me out to the ballgame.  enjoy an afternoon, evening, or weekend game at our great new ballpark.  Check the Reno Aces website for dates and times.

6)  Reno Blues Festival - This is the 5th year of this great blues festival with performers and fans coming from all over the country.  Get you blues fix August 15 thru August 21st.

7)  Reno National Championship Air Races - Fly Fast, Fly Low, Turn Left.  I you have the need to see speed then you must go to this event.  Located at Stead Airport September 16th through September 20th.

8)  Great Reno Balloon Races -  It might not be as big as Albuquerque however this is a great event for the whole family.  You need to be an early riser to see the glow of the balloon's just before daybreak when the dawn patrol sets out.  September 11th through September 13th.

9)  Street Vibrations - If you ever wanted a chance to look at great motorcycles and motorcycle equipment then Street Vibrations is the place to be on September 23rd through September 27th.  Lots of great cycles and great music.

10)  Best In The West Rib Cook-Off - This is the 20th year of this great event.  Music, crafts, and oh those ribs.  Yum-Yum.  September 2nd through September 7th in Victorian Square in Sparks.

Enjoy the summer in Reno!

There is a home auction coming up the end of this month at the Peppermill.  They are very exicting to attend and watch however they may not be the place to get the best value on a bank owned or REO property.

There are two types of auctions that can be held.  The 1st type is an 'Absolute' auction.  This is the type of auction that most people think they are attending.  In an absolute auction the highest bidder gets the property regardless of the bid.  There are no reserves.  If you found an absolute auction that was selling at auction the 55 Chevy that we would all like to have and the highest bid was $100 then the car would be sold for a $100. 

Now back to the real world.  The type of auction that usually is held is labeled an Auction.  Technically it is a reserve auction which means that a minimum selling price has been established for the property and if that price is not met then the property will not be sold.  This auction type may or may not have opening bid amounts.  The opening bid amount may have been set at a very low level in order to get interest in the auction.  99.9999% of the time the property will not sell for the opening bid amount.  The owner of the property (the bank) will have established a reserve price which if not met then the bank will not accept any bid less than that price.  The auctioneer has the authority to bid on the property up to the reserve price which means that the auctioneer is actually bidding to get the property to it's reserve price.

Along with reserve selling prices, many of the auction companies charge a 'buyer's premimum' in addition to the sales price.  The amount of the premium can vary however I have seen many cases where the premium is 5% of the agreed upon purchase price.  An example would be that if you got acceptance of a bid for a property at $300,000 then the auction company would add on 5% or $15,000 to the transaction bringing the actual sales price to $315,000.

In some cases the most you will pay for a bank owned REO property is what you would pay at auction.  It may be better to have your Realtor(r) work with you to buy the property out right and bypass the auction.

Let me know if you have any questions.

The first signs of summer are upon us and I don't mean the weather.  This is the most unsettled June weather I can remember.  The first sign of summer is the farmers markets that are now in full swing at many Reno area locations.

I went to the Somersett farmers market last Wednesday.  This event was very well attended with a variety of goods to choose from.  This early in the season that produce was a little scarce.  There were also food and craft vendors who l displayed a wide range of merchandise.

Entertainment was provided by Guitar Woody and his band.  They were great and really rocked the market.  Unlike some of the other area farmers market, the Somersett market is a family affair.  You see a lot of families with children and dogs at the market.

There were food and beverage specials from the Bistro and Whispering Vine.  Great food, great beverages, great people, great produce, great merchandise.  This is what the farmers markets are all about.  I can't wait till next Wednesday and who knows, maybe the weather will be summer like too.

John & Helen

Today is the day that everyone dreads.  We have an audit with the IRS.  As I worked for several weeks to get my data in order I discovered that I could have done a much better job of record keeping.  It's such a simple task and as a result it doesn't get the priority that it should.  Some of the sources for backup data that you may be counting on either no longer exist or can be difficult to get a hold of.  Trying to get 3 year old bank statements from a bank that I no longer do business with is difficult.  Financial institutions change or upgrade software from time to time and may no longer have back records. 

The lesson that I have learned is to get my business recording in order and keep it that way.  In the long run it will save time and stress.

Happy Record Keeping.

John Graham

For owners who can on longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of these options is called a Short Sale.

When lenders agree to do a short sale it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more sense to foreclose; moreover, not all sellers or properties qualify for short sales.

If you are considering buying a short sale, there could be drawbacks. For your protection we suggest that you obtain legal advice from a competent real estate lawyer and call a CPA to discuss short sale ramifications.

Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007 be aware that the IRS could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid.

Most importantly, work with a Realtor that is experienced in Short Sale transactions and can help guide you through this process.

FOXTAILS:

Foxtails are a type of sticker prevalent in the spring and summer season. Foxtails range from 1/2" to 3" in length, and are very sharp at one end then branch into wispy tails at the other. Foxtails have the ability to burrow under the skin and migrate to different areas of the body. Foxtails commonly invade the pets's ears causing discomfort and shaking or tilting of the head. Foxtails can penetrate the skin of the feet causing painful abscesses to form. When a foxtail enters the nose, severe sneezing can occur, often accompanied by a bloody discharge. Basic precautions include checking your pet's feet, ears and hair after outdoor activities. When foxtails are suspected, your pet's veterinarian may need to use anesthetics and special surgical instruments to remove them.

This summer be sure to watch for any swelling, drainage, limping, violent sneezing or head shaking which may be an indication of foxtails intrusions.

This information is courtesy of Community Animal Hospital in Reno, NV.

Somersett in NorthWest Reno will hold their first Farmer's Market of this year on Wednesday June 10th.

This is a terrific fun event for the whole family, support our Nevada Certified Farmers and buy fresh, buy local!

Local artists and craft vendors also attend this event and have many unique items that you can't buy in the stores. Enjoy weekly food specials by Roundabout Bistro and drink specials from Whispering Vine. Live music for the kids and adults to dance to and don't forget to enter the grand prize drawing.

This event will run every Wednesday from 4pm-8pm June10th-August 26th in Somersett's Town Square.

Come & Join the fun!

This week mortgage rates hit 25-week high.  Conventional mortgages reached their highest rates year to date.  According to Freddie Mac the 30-year fixed rate mortgage hit a 25-week high of 5.29 percent during the week ended June 4, up from 4.91 percent the prior week. As recently as two months ago, rates had been 4.78 percent. 
The 15-year fixed rate also increased, rising to 4.79 percent from 4.53 percent.  The five-year adjustable mortgage rate climbed to 4.85 percent from 4.82 percent, and the one-year ARM surged to 4.81 percent from 4.69 percent.

Are rates on the way back up?