A noteworthy threshold was broken over the weekend. The Reno-Sparks’ real estate market now has fewer than 100 bank-owned houses available – 98 to be precise (active, non-pending, site/stickbuilt SFRs). Why is this noteworthy? Because normally many more than that number sell on a monthly basis. Here are the number of REOs sold over the past six months.
|Month||REOs Sold||% of total sales|
As can be seen the number has been declining – and will continue to do so. Whereas REOs typically represented 30 – 40 percent of our market’s inventory, bank-owned properties now account for only 12 percent. And if some of the comments from my previous post are accurate, there looks to be no increase in the number of REOs entering our market until late 2013, when any changes to AB284 may be effected.
The effects of AB284 are being felt statewide. Take a look at these recent numbers for the Las Vegas market. [Click on the graphic to enlarge]
source: Ticor Title
As can be seen in the table, like the Reno-Sparks market, Las Vegas and Henderson have less than a two-month supply of inventory, with REOs now comprising only a small part of the inventory mix.