Tag Archives: Real Estate

Is the Reno Real Estate Market Finally Looking Up?

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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

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Foreclosure Activity Likely to Increase This Year

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We can expect a large increase on foreclosure activity this year. At least, that’s what the LA Times thinks. Foreclosure activity has been suppressed because the lenders have been focusing on getting their act together. Here in Nevada they face an added burden of AB 284 which forces them to certify that all their paperwork is in order.

But, they are beginning to work through their backlog so we can expect an increase in activity.

The state’s difficulties were reflected in RealtyTrac’s report, which showed California with the third-highest incidence of foreclosure filings in 2011, behind only Nevada and Arizona.

Analysts also expect CA to stabilize quickly due to their fairly fast timeline. Nevada, on the other hand, is hampered by the effect of AB-284.

Read more: http://www.latimes.com/business/la-fi-foreclosures-20120112,0,7066381.story?track=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+latimes%2Fbusiness+%28L.A.+Times+-+Business%29

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Reno Makes another Worst of List

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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/

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Foreclosure Starts are Down Across the West

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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.”

Read more: http://www.housingwire.com/2012/01/13/foreclosure-starts-drop-across-the-west-coast?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29

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Would You Catch a Falling Knife?

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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.

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Mortgage Interest Rates at Record Low

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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

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NAR says Over Counting was Minor

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The NAR ( National Association of Realtors) Has been fudging the data on the sales of esisting homes for at least the last four years. Just in case you didn’t make the connection, that’s at least since the Obama Immaculation.

The NAR is now revising their numbers downward, and by as much as 20%. Apparently the numbers didn’t match those of Corelogic. And now the NAR doesn’t want to be seen as untrustworthy, so, now they are revising their numbers downward. NAR numbers used to relied on as reliable and now they might be running scared.

The concern is that an over-count might mean that a much larger backlog of unsold homes still looms over the US economy. That could mean that another drop of as much as 20 % could loom over the US housing market.

But the NAR says they are working on a new method to re-evaluate the market.

I’m surely ready tojump in and trust them again. Aren’t you?

Read more: http://www.reuters.com/article/2011/02/22/us-usa-economy-housing-idUSTRE71L10U20110222

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Canadians Think Las Vegas is Good Investment

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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

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Would I buy a Belvedere Condominium?

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My posts on this blog about the Belvedere condominium project and developer Bijan Madjlessi generated more interest than any other so far. Readers have even contacted me asking what I thought about buying units in the project.

I must begin with this disclaimer because except for what I have read or learned in newspaper or other reports my direct knowledge of the Belvedere is almost nonexistent. I’ve never been in the Belvedere nor have I ever met any of the players that I am aware of. As I said the extent of my knowledge has come only from news articles or from comments on this or other blogs. Therefore I believe I am not qualified to recommend in any way either positive or negative about the benefits of purchasing a Belvedere condominium unit.

My concern with the Belvedere project is that I am not convinced that the legal difficulties are yet over. There are some other reasons that I do not like condominiums but I will save that for another time.

As we have learned from the Reno Gazette Journal, the Belvedere condominiums were purchased at a Washoe County tax foreclosure sale by David Lonich, the attorney for Madjlessi. It would appear to me that Lonich is nothing but the straw buyer for Madjlessi.

We learned that Madjlessi failed to pay his mortgages, failed to pay his vendors, and failed to pay property taxes, thus resulting in tax foreclosure.

We learned that Madjlessi had been arrested in California for insurance fraud. Then as information began to grow we learned that Madjlessi was involved in the failure of Sonoma Valley bank. We further learned that Madjlessi had been involved in at least three other failed developments in California in the Sonoma and Petaluma area.

I would be concerned that the Belvedere is still a target rich environment for attorneys and law suits. I can only imagine that some hungry attorney will see an opportunity in coming to aid of the vendors that lost so much by their supplying goods and services to the project.

I just can’t imagine that they will be happy seeing Madjlessi win at their expense.

So, no. I would not personally be comfortable buying a condominium in the Belvedere project.

I would welcome comments from anyone having a different opinion.

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$1,000 Bar Tab If You Buy This House

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Have you been trying to sell a home and finding very little interest. Would you consider an incentive to the buyer?

A Glenview, Ill., homeowner, having difficulty selling her home, offered a unique incentive to stoke interest: $1,000 worth of food and drink at Grandpa’s Place, the bar across the street.

Just in case, gimme an Icky.

Read the rest: http://www.msnbc.msn.com/id/44583693/ns/business-real_estate/

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