High apartment rents in the Reno-Sparks
Don’t look for the rents to reduce anytime soon.
According to a report from Johnson, Perkins, and Griffin, second quarter data in 2015 indicates average rent for an apartment in the Reno-Sparks metro area is at an all time high — $920 per month.
I’ve seen rosy predictions before. I don’t know if real estate agents could do anything else. After all, their livlihood depends on it. Else, how could they sell something they thought to be a loser. And don’t assume by this that I think the agents fib about their marketplace. I’m not suggesting that at all.
So, I refer you to this article in NNBW by Kevin Annis about the Reno-area office market and I read it to mean that he thinks things are looking up.
Northern Nevada businesses will realize the worst is behind us. I recognize that this is not a measurable prediction; however, it certainly is worth recognizing. Companies that have weathered the economic storm have made it past the worst of it and will begin reinvesting in local economy.
For me, maybe – and maybe not.
Read more: http://www.nnbw.com/ArticleRead.aspx?storyID=18719
Here’s another “best of”, “worst of” list and Reno wins another prize. It may not be the prize that Reno would like on its resume although it’s not necessarily our fault. It is not just a story about Reno or Northern Nevada. This is an American problem, and I believe it was completely caused by politicians.
This is a list from 24/7 Wall St. of 9 cities that the article claims were nearly destroyed by the recession. Reno was scored in second place.
2. Reno-Sparks, NV
> Pct. jobs recovered: 1.6%
> Q4 2012 jobs: 187,600
> Pre-recession jobs peak: 225,200
> Recession jobs trough: 187,000
> Pct. jobs lost: 16.9%Between 2007 and 2010, the median home value in Reno-Sparks, Nevada declined 37.4%, the 13th biggest drop in the country among metro areas. The problems of the recession have plagued states in the southwest, which once had booming housing markets, arguably more than any other part in the country. From the beginning of 2007 to the third quarter of this year, jobs are projected to decline by 38,200, or 16.9% of the workforce. And according to the report, only 600 jobs, a mere 1.6%, will be recovered by the end of the year.
Read more: http://247wallst.com/2012/01/19/the-nin-cities-that-havent-recovered-from-the-recession/
Foreclosure starts are down all across the West Coast for December. Reduced filings were reported in California, Nevada and Washington. Nevada showed drops of 14%.
According to ForeclosureRadar the drops were due to the closing of trustee sale locations in California. Riverside County passed an ordinance prohibiting solicitation on all County property. California law only specifies that the location must be within the County where the property is located and must be published in the Notice of Sale. Nevada law states
2. All sales of real property must be made:
(a) In a county with a population of less than 100,000, at the courthouse in the county in which the property or some part thereof is situated.
(b) In a county with a population of 100,000 or more, at the public location in the county designated by the governing body of the county for that purpose.
Here in Reno trustee sales are conducted on the steps of the Court House on Virginia Street.
The slow down in Nevada was attributed to AB 284 which established new foreclosure rules requiring the lender and trustee to certify that they have done everything correctly.
“Nevada’s new foreclosure rules appear on track to bring a near complete halt to foreclosures in that state,” said Sean O’Toole, founder and chief executive officer of ForeclosureRadar.
“In the near term this will certainly help homeowners who were facing foreclosure, eviction, and potentially deficiency judgements. Longer term, we believe there will be unintended consequences for the state as business declines for the many real estate related companies that would normally service, resell and finance those foreclosures.”
We know that Nevada leads the nation in foreclosures but seldom with little supporting data.
This heat map from RealtyTrac shows the foreclosure data for Nevada county by county. One out of 177 housing units received a foreclosure filing in December, 2011. Washoe County had one for every 318 housing units. Surprisingly, Lyon County even topped Clark county with 1 for every 144 units. All this compares with 1 for every 634 units nationwide. Check it out.
The question arises, has the real estate market bottomed out? And is this a good time to buy? Can you compare buying real estate today to catching a falling knife?
If you ever wanted to see a super analysis of the real estate market check out this article by Jeff Harding. He covers the many aspects of both residential and commercial and what I read, it ain’t pretty. He has great information and much more than I could tell.
he bottom line on the residential market is that home values will continue to decline in 2012 on a national basis, and if, as we are forecasting, the economy continues to flatten or decline, there will be no good news next year. Again, as we know, there is no “national” market and each locality has its own dynamics. But these data will have a negative impact on home buyers’ attitudes about the housing market.
The bottom line on the CRE markets is that prices appear to be flattening, but there is a substantial refi problem continuing to overhang the markets. As the bulk of these loans need refinancing at their maturity dates, it is likely that many of them will not be able to replace their loans and will face the requirement to come up with additional capital or face foreclosure, thus delinquency rates will remain high, especially in the sub-Class A markets. This has been the story of CRE for the past four years and there are no economic dynamics that would change it.
It is unlikely that investors and home buyers will be willing to catch a falling knife.
As he mentions, this describes a nationwide market and the reality is that all real estate markets are local. What happens nationally may not be the story for here in Nevada or in the Reno-Sparks area.
The rate on the 30-year fixed mortgage reached a new record low of 3.91 percent. This marks the third new low this year. The 15-year fixed mortgage rate, remained unchanged at a low of 3.21 percent.
The exceptionally low rates and the depressed prices have created a superb buying opportunity, but the opportunity is lost for many potential buyers because of the difficulty qualifying for new loans.
With so many homes underwater here in Reno and Sparks very few homeowners can qualify for a re-finance. Additionally, Nevada’s real unemployment further reduces the chances to re-finance.
Read more: http://www.businessweek.com/ap/financialnews/D9RPKO100.htm
Canadians must think Las Vegas is a good place to invest. Else, why would they be putting their own money there?
The reality is that Candadians are investing in Las Vegas, big time. Do they know something that we don’t? Or, are we so close to the problem that we can’t see the opportunity.
“Where in Canada can you currently buy a $50,000 property that you can turn around and rent for $1,000 a month?” says real estate broker Steve Martel of Martels Real Estate Inc. in Ottawa, who specializes in the U.S. realty market.
This may be an idea for investing – or or may also be an indication of opportunities here in Reno.
What do you think?
read more: http://www.calgaryherald.com/business/Invest+real+estate/5611525/story.html
The Reno-Sparks Hot August Nights begins today.
During Hot August Nights, cars are “cherry” and cruisin’ is “too cool.” More than 800,000 people flock to the Event where cars are the stars and rock ‘n roll rules through dozens of concerts, controlled cruises, show-n-shines, a sock hop and much more!
Plenty of shopping can be found at the Classic Car Auction, Big Boy Toy Store, Hot August Nights Swap Meet. So much to do, so much to see, make your plans to visit Hot August Nights today!
Enjoy the show.