Wow! Notices of Default (NODs) quadrupled in September (see chart below). …however, this dramatic increase could be a very short-lived phenomena — as in one-month only. The new foreclosure requirements of SB321 became effective yesterday, October 1st. The number of NODs filed this month (October) could easily drop back to the double digits.
Below are Washoe County Notices of Default (NODs), Notices of Sale (NOSs), Trustees Deed Filings (TDs) and New SFR REO Listings statistics for September 2013 provided to us by our friends at Ticor Title of Nevada, Inc. [Click on the chart below to enlarge.]
Ticor Title’s commentary accompanying the statistics…
Notice of Defaults (NOD) increased by a HUGE number, from 151 to 613. Notices of Sales went down from 211 in August to 155 in September. Trustees Deeds increased by 1 recording. In September of 2011, the banks recorded 613 Notices of Defaults before October 1, 2011 when AB284 (now AB300) came into effect. It’s interesting that the exact number (613) was recorded this September before the October 1, 2013 effective date of SB321 the new Homeowner’s Bill of Rights. It would be assumed that the banks are trying to beat the deadline before they have to comply with the new foreclosure requirements of SB321. Want to read the bill, click on this link: http://www.leg.state.nv.us/Session/77th2013/Bills/SB/SB321_EN.pdf
For September, New Listings are down and buyers are still waiting for the right property, lower interest rates and affordable housing. Total Solds in September are down from August and the September Median Sales price went up slightly to $225,000. REO and Short Sale New Listings are still on the decline.
What am I hearing out in the field?….
- Some Bank Owned/REO listings are priced too high.
- There are traditional sellers also pricing too high.
- Everyone is waiting to see if the Debt Forgiveness act will be extended.
- Seeing an increase of For Sale By Owners in the market.
- Inventory under $200,000 hard to find.
- How will SB321 affect our market?
- How will the Government Shut Down affect our transactions?
Have questions? Please feel free to contact myself or one of our sales executives.
Erin Schiller
Regional Sales Executive
Ticor Title of Nevada, Inc.
775-343-7935
related post: Washoe County foreclosure-related recordings – August 2013
Jason Wilkins
I’ve enjoyed your blog, Guy. Reno was tops on my list to move to, but after much research and a week-long visit this summer I confirmed I’d have to pay a ~30% premium to buy one of only a couple dozen houses truly for sale (the rest being pending), and in disrepair at that, presumably mostly due to AB284. It seems that SB321 extends the squatters’ rights for another 4 years, so I reluctantly bade Reno adieu to focus on more normal markets. It’ll be interesting to see what transpires in 2017 when the free ride is finally over.
Guy Johnson
Jason, Thank you for your comment and thank you for reading the blog. Sorry to hear you’ve crossed off Reno from your short list. For my clarification, the ~30% premium is relative to what specifically? Thanks in advance.
Jason Wilkins
Guy, it’s relative to the price for a short sale, all else being equal. For example a short sale house that sells for $150K is available as a regular sale for $200K. That’s my impression at least. I can’t abide paying 30% more than most other buyers, especially when: I’ve already made major compromises due to the inventory being so limited, and I’m taking the risk that the house would sell for $120K if not for AB284 and SB321 fueling squatting en masse. The short sales go pending so quickly, seemingly within hours, and what you see on the ground often pales in comparison to what you see online, so pursuing that avenue I’d likely just waste money making expensive trips to Reno on the spur of the moment.
Even if I’m off on the 30% premium, what is definitely true is that Reno has a risky housing market for someone who hates to lose money. In a normal market the size of Reno’s I’d have ten times the choices, I wouldn’t necessarily have to make a hasty decision, and I’d have confidence I’m not overpaying.
Guy Johnson
Thank you for sharing your rationale, Jason. Much appreciated.
Jackie
I have been ready to buy but am sitting on the sidelines as I do not trust this market. Reno has been on the top of my list as well, but as many of my friends have also said….not sure that the economy up there and unstable housing market is worth the risk.
I’ve been going up there since 1991 and have seen a lot change, both good and bad. I do not feel confident that the current prices of homes that need $50-100k in updating and repairs, or the new houses that have cheap finishes from 1998 are worth the $350k ++ they are asking. Will the prices drop suddenly and cause a whole new wave of underwater homeowners????
I too, am looking at other locals. My friends and family think Reno, well to be fair, Nevada is just too much of a gamble. Sad…I used to think it had a lot to offer.
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