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Comment on ActiveRain’s predictions by the pros by ALPS

ALPS — Wed, 22 Feb 2012 20:13:35 +0000

What the hell else can the realtors say about the Reno market?
How many markets in America are down 65% from the bubble top?
How many cities have an unofficial unemployment/underemployment level of 25%?
How many states have a legislatively induced artificial hold on the foreclosure process with thousands of future NODs piling up?
How many markets in America are there where 75% of all sales are either an REO or short sale, which means no move-up buyer?
Putting Reno on the list of the worst markets is a no-brainer.

Comment on ActiveRain’s predictions by the pros by Stewart

Stewart — Wed, 22 Feb 2012 20:02:17 +0000

Yes several so-called “independent” sources have put Reno among the worst housing markets in the country. But is this capitulation by the realtors? The realtors are for the first time coming out and saying that the Reno housing market sucks.

Comment on ActiveRain’s predictions by the pros by Martin

Martin — Wed, 22 Feb 2012 19:12:19 +0000

Reno has been showing up in recent months on several “lists” or “surveys” as one of the worst housing markets in the USA. This one may be the first one where realtors shut down the spinjive and tell the truth.
Perhaps this is the ultimate vindication of Bantering Bear and Reno Ignoramus when the biggest realtor website in the country says the Reno market is the worst.

Comment on Cash is King – more than ever by Lithium

Lithium — Wed, 22 Feb 2012 19:02:54 +0000

It does appear that the cash sales are pulling the market lower. They are for less money than sales where buyers get a loan. They are lowering the overall median. It’s hard to know with any precision what percentage of these cash buyers are investors, but I tend to agree with Twister and Norton that a lot of these cash buyers are investors buying houses that are 65-70% off of their bubble high and that can be rented out with not much effort for $800-$900 a month.

Comment on ActiveRain’s predictions by the pros by Raymond

Raymond — Wed, 22 Feb 2012 18:51:15 +0000

So Reno is ranked Number 1 in the bottom 10 real estate markets in America. So finally the realtors get real. Nice to finally see some honesty.

Comment on Cash is King – more than ever by Twister

Twister — Wed, 22 Feb 2012 16:07:22 +0000

I bet theirs a lot of demand, by renters, for houses under $1000 a month and so investors are buying up these cheap little fixer-upers, built in the 50s,60s and 70s, to meet that demand. Who wouldnt want to buy a house for $40k that sold for 200k 6 years ago, fix it up and rent it out for $800 a month. So I think its the sale of those houses filling that demand that has caused the median price to be lower than it otherwise would be. My guess is that when the rental demand is filled or inventory of these small older homes dries up, the median price will reflect that to the upside.

Comment on Cash is King – more than ever by Matthew

Matthew — Wed, 22 Feb 2012 15:27:59 +0000

Cal, I don’t see how you can conclude that cash buyers are contributing to the market decline.
That isn’t what the data suggests at all.

Comment on Cash is King – more than ever by Cal

Cal — Wed, 22 Feb 2012 03:10:09 +0000

So the median of all cash sales ($135K) is about 13% below the overall median for all sales ($154K). This seems to suggest that cash buyers are not doing anything to raise prices, and in fact they are contributing to the market’s price decline.
Which is totally consistent with what we have seen over the past year: increasing sales volume, vastly enlarged numbers of cash buyers as compared to historical norms, and falling sales prices.

Comment on Cash is King – more than ever by Guy Johnson

Guy Johnson — Wed, 22 Feb 2012 03:09:25 +0000

Norton,
Of the 1,551 cash sales in 2011, 654 (or 42%) were REOs.

Comment on Cash is King – more than ever by Norton

Norton — Wed, 22 Feb 2012 02:56:07 +0000

My speculation (and that’s all it is) is that most people paying cash are investors and not people intending to reside in the house, and that most of the cash sales are at the bottom end of the market. When CDs are yielding .3% and the stock market is a volatile roller coaster, buying a house for $90K to rent out seems like a sensible thing to some people.
Guy, I’d also like to know what percentage of the cash sales are REOs if that info is available.