As if Reno didn’t have enough to worry about, now God hates us. According to the Westboro Baptist Cult, based out of Topeka, Kansas, “…the curse of God [is] upon Reno…God hates Reno, Nevada.” One can only wonder what impact this will have of property values around here.
Since these characters seem to have a direct line to God, I’m thinking of asking them to find out what housing markets God doesn’t hate. Could be a buying opportunity there.
It looks like last quarter’s Moody’s Economy.com report on housing price declines, which I have referenced in previous posts, may have been a little too optimistic. Many of our readers have been forwarding links to yesterday’s Merrill Lynch housing report. The report has been all over the news, but in case you’ve missed it, here are a couple takes on it:
Housing prices to free fall in 2008 – CNNMoney.com
Merrill Lynch says U.S. nationwide home prices may fall 30% - MarketWatch.com
I just wanted to take a moment to say happy holidays to everyone who reads and contributes to this blog. Guy and I are so grateful for all the people we’ve met and the clients we’ve served… it has been a truly wonderful year. May you all find warmth and happiness this holiday season.
Also, we are planning to move the entire blog from Typepad to Wordpress sometime this week. The changeover may take 4-6 hours. During the process, comments will be closed, but we will try to give you some advanced warning. Hopefully you’ll all be out skiing and visiting loved ones rather than obsessing about the local housing market, anyway… 
What’s in and what’s out with buyers for 2008? Sellers take note… OUT = Unrealistic, pie-in-the-sky pricing, double-digit appreciation, vacant homes and option arm lending. IN = beautifully staged interiors, pet showers, elevators, down payments and double-digit depreciation. read
Lisa Fleck, our local representative over at IndyMac reports: "The OFHEO announced that
the Fannie Mae conforming single family loan limit will remain at $417,000
despite a decline in real estate values. The maximum conforming loan limit is
based on the October-to-October change in the average house price in the Monthly
Interest Rate Survey of the Federal Housing Finance Board (FHFB). The FHFB
reported the decline in the average price was $10,685 or 3.49 percent, from
$306,258 in October 2006 to $295,573 in October 2007. The combined two-year
decline is now 3.65 percent.
unchanged."
Our good buddy Mike, AKA Downtown Makeover Dude, is on fire with news and commentary on what’s happening in the world of downtown development. Despite the current downturn in residential real estate, major developers continue to quietly invest in our humble downtown, assembling parcels for redevelopment, proposing high-dollar retail plans to the city, even bringing baseball to Northern Nevada… (now if only someone could throw in a year-round ice rink. That would really make my day.)
Housing Market Screws Teachers and Government
NHAB Names Nation’s Most Affordable Housing Markets
Easy Money, Risky Loans Drive Losses
Mortgages, Drugs: What’s the Difference?
Forget Incentives, Just Slash Prices
Lyon County Developers Ask for Mercy
Nearly 16% of Homeowners Have Negative Equity
Lenders Holding Lots of Property: What Next?
"Short Sale" Among Top Searched Terms at Inman Wiki
It’s a Long Way Down According to Robert Schiller
What’s the Big Deal? Just Another Day of Voodoo Lending…
DR Horton Predicts 2008 to be Worse than 2007
Real Estate Confidential: Today’s Reality
What if Freddie Mac Became Insolvent?
Quote of the week from a Las Vegas homeowner: "Putting your home on the MLS and expecting a sale is like watching dinosaurs dodge asteroids," Steve Rohl said.
And now for a moment of self promotion… did you see the KREN 10 o’clock news last night? They did a little warning piece on renters unknowingly renting from landlords in trouble and interviewed moi in the process. A bit part, but renters, beware.
Also, ever wondered what that $100 million will buy you up at Lake Tahoe? Take an MSNBC video tour of my broker’s Tranquility listing to find out…
Heard on the Street: I’ve been collecting these tidbits for weeks and make no claims whatsoever as to their accuracy. However, they do sound credible…
"Sunset Bluffs is the 41 unit development between
Somersett and Mogul. Looks like it is tubing. Work seems to have stopped
again, no more marketing, and 11 contractors have filed liens.
"Somersett’s back door is moving along. Curbs are now
poured all the way to parallel to 80, and work on the final section to old US 40
(now W 3rd Street) is accelerating. At the base, you are going to get a Shell gas station with mini-mart and
restaurant, courtesy of the guy who owns LST trucking.
"Ground zero = townhouses around
Smithridge. 53 on the market right now. They got up to $225,000 or so at the
peak, were all at $180,000 a few months ago, and are now nearing $160,000. Tons
of TD’s. This was truly entry level stuff, so it’s really too bad. Still, the
vast majority are going TD not due to resets, just stupid
purchases.
"The average loan foreclosed on in a TD has been about $290.000 but seems to be
trending up. Definitely more pricey Wingfield and South Meadows properties showing
up.
"It used to be that at least 40% of the NOD’s
were on obvious investors. It’s closer to 10% now. A lot of the speculators
have been flushed from the market, and a lot more of the hurt is falling on
local owner occupants.
"Most of the NOD loans are from 2005-06, but I’m
seeing more really old ’90’s loans going bad. HELOC as death.
"Tracking NODs to TDs is too hard, but NOS to TD
is pretty easy. Six months ago it was about 25%, now it is over 60% and heading
up. No more than 20% of the NODs are due to rate
resets.
"FYI, I can say by traveling daily around the country that housing is in pretty
bad shape… Here is some info for you… I am in Florida this week, and just
about everybody I know is in trouble to the point the Broward County Sheriff I
was with today was telling me of the huge increase in crime do to people losing
homes. DESPERATE MEASURES.
"My wife is in Shangahi this week, and
property is ‘on fire’. Their economy is burning hot. As for Detroit housing… My associate flew into Detroit this afternoon and had a gun put to his
head, had his laptop and wallet stolen… The economy is so bad that
the Detroit PD would not even take a police report."
So if the president of the National Association of Realtors doesn’t even listen to his own agent when it comes to pricing his house, why should any of you listen to any of us? Hot Property comments, Realty Check goes further.
But I’m sure he’ll sell it to somebody soon, because, let’s not forget that one out of 16 households in America will be buying a house this year. And the credit situation is improving.
The Fed Caves in to Wall Street
Subprime to Get Worse Before it Gets Better
IndyMac Loss Five Times Larger Than Projected
Hovnanian Reports 40% Cancellation Rates
Beazer Cuts Jobs and Dividends
I don’t care which city does it, but Reno or Sparks must open an ice arena, period. And I suppose hockey’s the big moneymaker, just ask San Jose about the Sharks they brought in nearly two decades ago… but figure skating in Reno has a real leg up, and most people who live here have no idea!
Rudy Galindo and his trainer-sister both live here, in Reno, NV. Rudy is a world bronze medalist and a favorite of Champions on Ice, and his sister, Laura Black, coached him to international levels. I’ve seen Rudy skate professionally at $75 per ticket, and I’ve seen him casually on the ice in Sparks, skating with his niece and nephew, helping the adult skaters practicing that day.
Though both started out in San Jose, they now live here in Reno. They currently train a handful of serious, young USFSA skating competitors who are forced to commute to South Lake Tahoe every morning at 4:00 am to train, since the only year-round rink in Sparks, Total Sports, closed a couple of years ago.
It’s a crime that these kids, whom you see perform every year at the downtown rink opening ceremony, have to make so many sacrifices to do what they love… skate beautifully on a well groomed piece of ice, 1.5 hours of driving time away.
I am a super-amateur figure skater who discovered the sport late in life. I came from a Bay Area rink where the skaters weren’t nearly so sophisticated as what you have in this region and don’t even know it. You have so much talent right here in Northern Nevada… you must build a rink. We have an absolute hero in our midst.
If we were smart, we would leverage our own local talent.
I am very pleased to report that Diane Cohn has been named one of the Top 12 Women Real Estate Bloggers for 2007. Sellsius Real Estate Blog, one of the country’s leading Real Estate Marketing Blogs, today announced this year’s recipients. In the real estate blogosphere this award is a very nice honor. Please join me in congratulating Diane Cohn.
And if you would like to congratulate Diane in person, join us Thursday evening for a Blogger meet-up at the Imperial Bar and Lounge.
According to Sperling’s BestPlaces Reno ranks as one of The Ten Best Places to Live in the U.S. I’m not sure if the list was in any particular order, but if so, Reno ranked 9th on Sperling’s top-ten list.
According to Sperling’s…
Reno’s Good
“Reno boasts ample options for outdoor recreation, including skiing the Sierra Nevada’s and exploring Lake Tahoe and its surrounding national forest.”
“Reno area is affordable (median home price $292,300), which makes it a smart choice for young people looking to move into a California-like climate on a budget.”
Reno’s Not so Good
“The crime rate is a bit higher than the national average…”
Regardless of whether you agree or disagree with the ranking, the exposure for Reno is great. This story is currently the lead story in Yahoo!® Real Estate’s Neighborhoods page.
Tags: Reno, NV
Let me say upfront: This post has nothing to do with the Reno real estate market. I am taking a breather from market stats today and instead taking the family to the lake.
It’s Saturday morning and I have just returned from another very enjoyable event that took place in everyone’s favorite development, Somersett. I must say, Somersett is really developing into a strong community of its own. The brand spankin’ new fire station #19 (located near the entrance to Del Webb’s Sierra Canyon development) opened recently, and to commemorate, the firemen and firewomen hosted a pancake and sausage breakfast. I was very pleased, not only with the production, but also with the impressive turnout. It seemed as though half of Somersett attended. [If you attended, I’d love to hear your thoughts comments.]
In addition to the breakfast, which was prepared by my favorite caterers, Men Wielding Fire, the firefighters had all their equipment on display and open for kids to play on. Excellent photo ops abounded. Various safety-related booths and exhibits were also set up, including a station to have your child photographed, ID’d and entered into the national children’s database.
With bicycle safety, face painting and giveaways (coloring books, magnets, badges, pencils, bookmarks, etc.) there was plenty to keep the kids entertained. But I have to say the hit of the event was the appearance by Smokey Bear. Representatives from the US Forest Service were on hand to talk about forest fires and their prevention, and, of course, Smokey Bear attended. Again, more photo ops.
In other Somersett news, Whispering Vine Wine Co. has officially opened their second location at Somersett Town Center. [FYI, for those of you who commute from Somersett, this location also features a drive up coffee window.] Last night was the grand opening party for this new location. All guests received a Riedel wine glass with Whispering Vine’s logo on the glass. Great marketing idea. With live entertainment, hors d’oeuvres provided by Roundabout Market, and a great outdoor atmosphere, not surprisingly the residents of Somersett showed another great turnout.
And on a different note: After multiple warning notices and letters, the Village at Town Center has finally begun towing illegally parked vehicles. At least two were towed last night. If you live in the Village, mind the no parking zones, which btw are almost all the streets in the Village.
Last week I mentioned the addition of the CDOM (cumulative days on market) field coming soon (September 2007) to listings in our MLS. Keeping the improvements coming, this week the powers that be announced that effective September 1, 2007 “A listing that has been in any off-market status (expired, withdrawn or temporarily off the market) and is being activated by the same company or firm in less than 30 days of the off-market-date of the most recent MLS must be updated to the “Back on Market” (BOMK) status.” […rather than with a status of “New”.]
This means that agents no longer will be allowed to remove their “stale” listings from the MLS and then immediately re-list them simply to obtain a status update of “New” on those listings.
This new Property Re-List Policy went on to say that, “A listing that has been in an off-market status (expired or withdrawn) may be re-entered as a “new” listing [only] if it has been off of the market for at least 30 days.
These are definitely changes for the better. Why the change to the rules? According to the new policy, “to enhance the accuracy of the statistical information generated through the system, and; to increase the accuracy of the data base for all members.” …And I know you guys have got to like that.
Diane CohnA creative strategist, Diane uses every angle she can to get the best deal possible for her clients. “I know the market. Trends, numbers, what’s happening on the street. I use it all to my client’s advantage,” she says. Diane earned her BA from the University of California and is an accredited ABR, SRES.
Guy JohnsonA successful prior business owner, Guy brings to the table twenty-plus years of exceeding client expectations. “Listening closely to my clients is the most important step to meeting their needs,” he says. A former Chicagoan, Guy earned his MBA from the University of Illinois.
JoAnn CorrieraJoAnn Corriera is one of Reno’s top-producing real estate agents. She credits her take-charge, pioneering spirit and determination to deliver the positive solutions clients are looking for. JoAnn offers the market expertise and marketing skills that generate top results whether clients are buying or selling.
Mike McGonagleAn architect, business owner, and compulsive public records hacker, Mike reads the tea leaves of the local real estate market from a unique perspective. Yet another Chicagoan, Mike earned his MArch from Harvard University.
