Real Estate Information

According to the Chief Economist for the National Association of Realtors Lawrence Yun, the supply of homes on the market is at it's lowest level in over two & a half years. We are getting closer to a general balance between buyers and sellers.

The last time the relative housing inventory was this low was in February 2007.

We are definitely seeing this same trend in Somersett, the Golf Community in the North West Foothills of Reno. We have been both living and working in Somersett since it's beginning six years ago and have not seen an inventory this low for a very long time.

The sales trends in Reno real estate may be changing.  Follow this link to a chart with Reno Area 2009 Sales by the categories of Regular Sales by month (non Bank Owned or (REO) or Short Sales).  Bank Owned Sales (REO) by month and Short Sales by month.

My observations are that total overall sales are trending up, Short Sales are trending up, Regular sales are trending up and Bank Owned or (REO) sales are trending flat.

Following are the total sales percentages for Reno real estate from January 2009 thru October 2009.

Percent of Total Sales

Regular Sales - 37%

Short Sales   - 21%

Bank Owned  - 42%

Compared to 2008 regular sales and short sales are moving up while bank sales are moving downward.

Please let me know if you have any questions.

Is it just me or are we seeing a decline in the number of Bank Owned (REO) properties available for sale in Reno and maybe the US?  Is the decline a seasonal issue as we move into winter or is something going on behind the scenes?

In April of this year the Financial Accounting and Standards Board (FASB) changed the method in which financial institutions (banks) could value their toxic assets.  Up until April, 2009, the banks had to value their toxic assets using a rule called mark to market.  This meant that if a property that was on their books for a $200K mortgage and is now selling for $100K then the bank had to show a value of $100K for this asset on it's books.  Makes sense right? 

With the change in the Mark to Market Rule (FASB 157), the banks can now future value their toxic assets which allows for a higher book value and can provide the opportunity for a more orderly sale of these toxic assets.  Instead of having to dump these assets onto a declining market, they can now elect to hold the asset at a higher book value (not impacting their balance sheet, capital requirements, and bonuses) and then determine when it makes sense for them to sell the assets over time.  Could this be contributing to a decline in REO properties available for sale?  How all of this will play out in regard to Real Estate is anyone's guess. 

Comments and questions are always welcome at www.RealEsateByGraham.com

Thanks

An extension to the 1st time home buyer tax credit was passed by the senate on Thursday and signed into law by President Obama on Friday.  It extends the benefits to the 1st time home buyer tax credit from November 7, 2009 - April 30, 2010.  Your new property must be in contract by April 30.2010 and must close escrow by July 1, 2010.

Along with the 1st time home buyer extension is a tax credit for non 1st time home buyers as well.  You must have used your current home (principle residence) for 5 years in a row of the previous 8 years.  This tax credit is for $6,500 for a married couple and $3,250 for couple filing separate.

Click on this link to see a comparision of these plans.

Please let us know if you have any questions.

We update a list of active Bank Owned (REO) and Short Sale properties on our Website at www.RealEstateByGraham.com each Wednesday.  You can follow these links to access the list of Reno Bank Owned (REO) or Reno Short Sale properties.

Please let us know if you need additional information on any of these properties.

Last evening the Reno City Council acted to keep the public purchase option for the abandoned Northgate Golf Course moving forward and agreed to provide $6,000 for maintenance over the next 6 months.  The Reno Sparks Convention and Visitors Authority closed the golf course and golf course operations in January of this year.

A group of area residents are working to establish a special assessment property tax district to cover the cost of the purchase of this property from it's current owner.  The purchase price for the property is $2.85 million and the proposed assessment district. would raise $2.0 million of the purchase price.  A request will be made to the Washoe County Commission to fund the remaining $850,000 required for purchase of the property.

Please let us know if you have any questions about this purchase. 

 Follow this link to get to a calendar of special events in Reno for November, 2009. 

Senate Clears Homebuyer Tax Credit Extension to Pass This Week

After two weeks of delay, the Senate last night cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers.  By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.

The homebuyer tax credit, due to expire in 28 days, would be extended through April 30 of next year.  First-time buyers who are in process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation cleared last night makes move-up buyers as well as first-time buyers eligible for a credit.  The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.  A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years..

Wahoo!-good news:

Key lawmakers in the senate have tentatively agreed to extend the existing $8,000 tax credit for first time buyers & also offer a new $6,500 credit for existing home owners who have lived in their current residence for a consecutive five year period in the past eight years.

Home buyers must be under contract by April 30th 2010 and close by July 1st 2010.

Inventory is low, if you are thinking about buying call us!

We attended one of the best concerts that we have been to in a long time at the Brewery Arts Center in Carson City, NV.  This is a fantastic venue that all of the seats are great and you are seated very close to the performers.

Laurence Juber is an amazing guitar player.  He was the lead guitarist with the band Wings and continues to play some of the Beatles works as well as his own compostions.

Following is a video of Laurence playing Maybe I'm Amazed.  Enjoy