This week’s real estate headlines

national real estate headlines - 2014Here are a few national real estate-related stories that came across my screen this week…

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“Home at Last” mortgage credit program expanded to Nevada’s urban areas

Interested in receiving a $2,000 tax refund at the end of the year? Previously limited to only Nevada rural areas (cities with populations fewer than 150,000 people), the Home at Last Mortgage Credit Certificate program is now available to Nevada’s urban areas. Read the press release below for more details…

FOR IMMEDIATE RELEASE:

New Homeowners in Reno
Could Qualify for $2,000 Annual Tax Refund
With MCC Program

CARSON CITY, NEV (July 21, 2014) – The Nevada Housing Division (NHD) and Nevada Rural Housing Authority (NRHA) have partnered to expand the Home at Last Mortgage Credit Certificate program to the urban areas of Nevada, including Reno, Las Vegas, North Las Vegas and Henderson.

In 2013, nearly 200 families in rural Nevada received tax credit benefits through the Home at Last Mortgage Credit Certificate (MCC) program. With the MCC program, an average homebuyer receives a $2,000 tax refund at the end of the year when the buyer files their taxes, and can be taken every year the borrower lives in the home, for the life of the loan. That’s an average savings of more than $40,000 in mortgage interest over the life of the loan.

Until now, this program has been limited to Nevada cities with populations fewer than 150,000 people, which left out potential homeowners in Nevada’s biggest cities. NHD has allocated $130 million in private activity bond cap to extend the MCC program to the urban areas of Nevada; and anticipates the program will help more than 600 households qualify for a mortgage. NHD will also promote and support the program expansion through its existing relationships and networks.

“When you compare the mission statements of the Nevada Housing Division (NHD) and the Nevada Rural
Housing Authority (NRHA), it’s easy to see why a partnership made sense,” said NRHA Executive Director Gary Longaker. “We’re both committed to improving the quality of life for Nevadans through affordable housing opportunities. This partnership allows us to help even more home buyers throughout the state.”

“The Division is excited to partner with the Nevada Rural Housing Authority to provide the MCC program to veterans and first-time homebuyers in areas of state that did not have access to this program previously,” said Nevada Housing Division Administrator CJ Manthe. “It’s my belief this program will assist individuals and families to qualify for mortgages, which will allow them to live and raise their families here in this great state. Delivering programs like the Mortgage Credit Certificate, along with our First Time Homebuyer program, Teacher’s First Program, and Veteran’s Benefit Program, allows the Housing Division to fulfill our mission of providing affordable housing solutions for all Nevadans. The MCC program is another tool in making owning a home in the State of Nevada a reality.”

To be eligible for the program, one must be a first time homebuyer, meaning they cannot have owned a home in the past three years, and must be purchasing the home as their primary residence, though the first-time homebuyer requirement can be waived for veterans. Households must meet income & purchase price qualifications (varying by county and household size) and normal FHA, VA, Conventional or USDA RD underwriting requirements. Urban area home purchases using the MCC program will be available starting in June. Nevadans can learn more about the MCC program, and get a list of approved lenders, by visiting www.nvrural.org/mcc, emailing HALinfo@nvrural.org.

About the Nevada Housing Division
The Nevada Housing Division was created by the Nevada Legislature in 1975, when it was recognized that a shortage of safe, decent, and sanitary housing existed throughout the State for low- and moderate-income Nevadans. Their mission is to improve quality of life by providing affordable housing opportunities. For more information visit www.housing.nv.gov.

About the Nevada Rural Housing Authority
The Nevada Rural Housing Authority creates hope for the future by providing a full range of housing and community development programs that help build and sustain independent communities. They provide rental support, an innovative home financing program, needs assessments and economic development to Nevada’s fifteen rural counties and the rural portions of Clark and Washoe counties, with a coverage area including 110,000 square miles and more than 1.3 million people. For more information, visit www.nvrural.org.

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This week’s real estate headlines

national real estate headlines - 2014Here are a few national real estate-related stories that came across my screen this week…

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FCT’s Market Condition Report – June 2014

Our friends at First Centennial Title have released their Market Condition Report for the Reno, Nevada area for the month of June. (Click on the report below to enlarge.)

FCT June 2014 Market Condition Report

related post: FCT’s Market Condition Report – March 2014

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RSAR Monthly Market Report – June 2014

The Reno/Sparks Association of REALTORS® has released its real estate market report for June 2014. The report can be accessed by clicking on the chart below.

number of units sold - June 2014

Commentary from June’s report:

  • June 2014 sales at 548 are the third highest June in history exceeded only by June 2010 (604) and June 2005 (679). June 2010 was the 1st deadline to take advantage of the First time Homebuyers Tax Credit and June 2005 was performing based on lenient lending practices. It’s a good sign that today’s market is performing well without artificial influences.
  • The acceleration in median price has slowed in comparison to the rapid increase that occurred in 2012 and early 2013. Even with the acceleration in price, the market is still 31.5% off the peak from January 2006. The slowing in the acceleration of median price is a positive and more normal trend.
  • New listings are down 8% from the prior month and down 6% from June 2013 but are following the typical seasonal trend.
  • June pending sales were down 8% with 382 compared to 416 in May 2014. Pendingsare a leading indicator of future closed transactions.
  • Buyer demand and low inventory keep the Reno and Fernley areas in a Seller’s market. Reno has 3.7 Month’s Supply of Inventory.
  • With the lack of inventory at the entry-level, those sellers with equity and who are willing to price their home competitively this is an excellent time to sell.
  • According to a July 6th article in The New York Times “… Reno appears poised to turn the corner, according to economist who study the region. Housing prices are slowly starting to rise. The unemployment rate has declined to 7.1%. New technology companies are arriving, and older ones are expanding, including Zulily, an e-commerce company for women and children’s clothing and home décor, which announced plans in May to double its warehouse and hire 600 people.” As quoted from The Times “There are solid reasons to be optimistic about Reno,” said Greg Bird, an economist at Moody’s Analytics. “We’re starting to really see the data turn for them.”
  • “There is a lot of positive things happening and slated to take place in the Truckee Meadows/Fernley area,” commented Reno/Sparks Association President, Mark Ashworth. “We look forward to a continued healthy recovery.”

related post: RSAR Monthly Market Report – May 2014

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This week’s real estate headlines

national real estate headlines - 2014Here are a few national real estate-related stories that came across my screen this week…

Posted in headlines, News | Tagged | Leave a comment

June median sales price, units sold, DOM and inventory

June 2014 medianThe median sales price for the Reno and Sparks, Nevada housing market continues to climb. June’s median sales price rose to $250,000, hitting another new high for the year. In fact, June’s median sales price is the highest median for the Reno-Sparks’ market in over five years. June’s median sales price represents a 4.2 percent one-month increase over May’s median of $240,000. Year-over-year, June’s median sales price is up 11 percent.

The Summer home buying season is in full swing. 550 houses sold in June 2014 — up 1.5 percent from the 542 sold in May, and up 3.6 percent from the 531 houses sold in June of last year.

June’s median sold price per square foot (ppsf) came in at $135.90/sq.ft. — an increase of 1.6 percent over May’s median sold ppsf of $133.75.

June’s median days on market (DOM) dropped to 61 days — a decrease of five days from the May’s median 66 DOM.

Available inventory continues to climb, but remains at a “Seller’s market” level at the lower price points. Currently, 1,234 houses are available for sale — a 14.7 percent increase from the 1,076 houses available for sale this time last month. Year-over-year, June’s inventory is up 43.7 percent.

June sales by type break out as follows:

  • REO sales: 7% – up slightly from May’s 6%
  • Short sales: 10% – down slightly from May’s 11%
  • Equity sales: 82% – unchanged from May’s 82%

June sales by price band break out as follows in the table below…

sales price ($000′s) units sold cumulative %
0 – 99 11 2.0%
100 – 199 161 31.3%
200 – 299 199 67.5%
300 – 399 105 86.5%
400 – 499 33 92.5%
500 – 599 19 96.0%
600 – 699 11 98.0%
700 – 799 4 98.7%
800 – 899 0 98.7%
900 – 999 1 98.9%
1M+ 6 100%
total 550

Six $1M+ homes sold in June. With 31 $1M+ sales year-to-date 2014 is continuing 2013’s increasing trend of million-dollar home sales – See Million dollar (and above) home sales double in 2013

June’s median sold price for houses and condos combined was $235,000–- a 4.4 percent increase over May’s median sold price of $225,000 for combined sales of houses and condos.

The table below contains the past 13 months of data…

Month Year # Sold Median Sold Price Sold Price per Sq Ft Median DOM # of Actives # of Pendings
June 2014 550 $250,000 $135.90 61 1,234 1,098
May 2014 542 $240,000 $133.75 66 1,076 1,190
Apr 2014 534 $230,000 $130.37 65 945 1,198
Mar 2014 482 $227,499 $129.72 64 837 1,249
Feb 2014 388 $233,500 $126.42 90 864 1,169
Jan 2014 353 $220,000 $125.32 87 817 1,084
Dec 2013 492 $231,000 $120.80 76 828 953
Nov 2013 475 $224,900 $126.51 71 974 1,171
Oct 2013 537 $214,750 $125.45 63 1,052 1,224
Sep 2013 513 $224,900 $126.53 70 1,019 1,305
Aug 2013 638 $220,000 $124.56 62 1,028 1,361
Jul 2013 593 $215,000 $123.25 64 920 1,455
Jun 2013 531 $225,000 $123.57 59 859 1,527

Note: The medians table above is updated on a monthly basis. The median home price data reported covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – July 2014. Note: This information is deemed reliable, but not guaranteed.

Click here for historical data back to 1998.

Related post: May median sales price, units sold, DOM and inventory

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Reno in the New York Times

In case you missed it, Reno, Nevada and its economy was featured in the New York Times. Take a couple of minutes to read this positive piece from the NYT: Reno Rolls the Dice on High-Tech

From the story:

Reno exemplifies how cities not far from California, including Boise, Idaho, and Tucson, are trying to poach the state’s technology culture to help diversify their economies, marketing themselves as places where taxes are lower and environmental regulations are less onerous.

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