The number of houses sold in July fell 32 percent from June’s units sold.  Seasonality factors and the end of the First-time Homebuyers Tax Credit contributed to the huge drop in sales.

On the flipside the median sales price jumped nearly 6 percent in July – due to the decrease in the number of entry-level homes being sold now that the effects of the First-time Homebuyers Tax Credit have passed .

Interestingly, July 2010’s median sold price of $180,000 is unchanged from July 2009’s number.

Active listings are up 9.8 percent this month.  Pendings are down 2.8 percent.

July’s sales break out as follows:

• Bank-owned properties – 26.3%  - up from June’s 23.3%
• Short sales – 34.7% - down from June’s 43.4%
• Equity sales – 37.7% - up from June’s 31.7%

For those readers who prefer the median sold price for houses and condos combined, July’s 475 sold houses and condos exhibited a combined median sold price of $162,900 – up from June’s combined median of $160,000.

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 - August 2010.  Note: This information is deemed reliable, but not guaranteed.

The RGJ reported this morning that average annual incomes in Washoe County fell $3,000 from 2008 to 2009. See Silver State’s incomes dive.

Looking at the data supplied from the U.S. Bureau of Economic Analysis average incomes for the Reno-Sparks metropolitan statistical area fell from $46,929 (2008) to $43,986 (2009)…a 6.3 percent drop.

Statewide incomes fell 5.8 percent for the same period.

AVERAGE INCOME

source: U.S. Bureau of Economic Analysis

The members of Somersett County Club (SCC) have apparent been give the ultimatum - buy the course or it will close or go BK or both.  I’ve been told that there was a 10 day time line on the notice, so there should be action this week.  In a letter to homeowners, Somersett Development explained the situation (and a little about the Town Center) here.

Who is SCC?  There is a LLC and an INC registered, one of which is the "owner" and the other the "manager".  LLC   was established 10/4/2002 and Somersett Development LTD is the sole manager. Somersett Development’s sole director is Smith Realty Finance.  Smith Realty Finance’s director positions are all held by G Blake Smith.   SCC Inc.  may be the operator.  Blake is listed in all the board of director  positions on the filing with the Secretary of State, originally filed 5/23/2003.  The two liens for unpaid dues identified “Somersett Country Club” as the plaintiff but didn’t’t identify Inc. or LTD.  However, the Assessor has all the land that the golf course occupies owned by Somersett Development.  The only recorded document  on SCC is a water document, but it is worth a look, as it identifies who owns what, at least at that point in time.

For the record, all the 18 hole golf course in Somersett is owned by Somersett Development LC per the Assessor.  Not SCC.

So watch for Somersett to be breaking news this week.  A golf community without a golf course, excepting the putt putt course owned by the HOA.

Sparks was named one of the most attractive up-and-coming small market cities for operating a high-tech manufacturing facility in the West, according to a national study by New Jersey-based, The Boyd Company, Inc.

Sparks, Nevada was ranked 10th best among 45 areas surveyed by the company.  Read the RGJ story here: Sparks gets Top 10-ranking in high-tech manufacturing

I received the letter below from a reader of the blog.  In the letter he describes the situation of a friend of his who is underwater on his home and is faced with the decision to “walk away”.  He has asked that I post his letter and ask the blogosphere for its comments.  He is sincerely interested in hearing your thoughts.

 
Love your blog and have been reading it for a couple of years.  I even posted once as ‘homebuyer2009′ back in May of 2009.  Anyway, I have a suggestion for a topic on your blog and would love to read comments from your readers.   Background:  I have a friend who is recently divorced but was able to keep the house because the spouse was helping pay the mortgage (form of Child Support).  However the spouse has now lost his job and is no longer able to help in that way.  My friend bought new in Cold Springs in 1997.  The house is now worth LESS than the 1998 purchase price.  Ok, so given the background, would this be a true statement regarding having to walk away (foreclosing): “You simply do not have the option to get out of your house any other way when life circumstances require you to leave.  The traditional ‘Sell and Move’ concept is no longer an option in Nevada because of the housing crisis.”
 
Now this statement is assuming that like most of us, there is not enough equity in the house to breakeven, there is no other income or equity that can be used to maintain payments. 

Love to know what you think.

It’s time again for a check of the pending sales snapshot taken from May 1st.  [Note: see 30 days later and 60 days later for the history on this exercise]

On May 1st I recorded 2,220 pending transactions.  Today we revisit those pendings….
Ninety days later 48 percent have now sold.  Nearly thirty percent remain pending.  And 22 percent have either re-entered the market or have been withdrawn altogether.

The low rate of closings is not surprising given that the majority of these pending transactions were short sales.  Receiving a response from the underlying lien holders in a short sale transaction can typically take ninety days or more.  

Note, the Back on Market number appears to have leveled off, however that’s because some of the properties that have reentered the market have actually gone pending again.

-  Foreclosure action for July 2010 remained pretty steady, which is probably a bad thing for us, all in all.  NODs increased to 674 from 638 in June and 639 in May.  NOSs were down to 573 from 600 in June and 582 in May.  TDs ticked up to 298 from June’s 294, but down from 327 in May.

-  124 Trustee’s Sales were scheduled for this week.  62 were postponed, 34 were canceled, 23 went back to the lenders as REOs, and 5 were purchased by third parties.  Inclinejj tracks similar stats for various markets he is interested in, and Reno Is WAY above his numbers for cancellations.  Last week, there was a tag on the site for one property that I had never seen before - "Brought Current".

-  One interesting postponed property was the Somersett Town Center, which was supposed to go to sale on the 30th.  They got a 3 week reprieve, and are back on the courthouse steps August 21.

-  NRES bought 11 TD properties, and sold 8, most notably 2525 W Lake Ridge Shores which was the site of the eviction standoff and fire a couple weeks ago.  Greenstreet bought 3 and sold 2.  Wood is Good bought 4 but didn’t sell any.  ROI Strategies didn’t buy, but sold 2. 

-  The NOS of the week was for the Boulevard South project at Double R and South Meadows Parkway.  Originally envisioned at a 1700 unit condo project in towers up to 40 stories high over a 5 story retail and parking base.  One corner of the site was to be a Four Corners Marriott hotel, and another piece was supposed to become the Bordeaux, and high end retirement complex.  Both to look dead, too.

 - Great Time to Buy a Home -   This gem from the President of the Nevada Association of Realtors was in the Homefinders insert to the RGJ Saturday.  Is this a reprint from a 2005 article?

 -  Radioreference is a really cool web site that showed up in some comments on the RGJ this week.  You can listen to police, fire, EMT, and air traffic control scanner traffic where available.  I’m already addicted to the Reno feeds.

-  123Cam syndicates a bazillion web cam feeds from around the world.  It is raining in Dubrovnik as we speak.  It is a whole lot of fun.

-  Siena - What a mess.  Some of the investors have contacted me and provided some pretty shocking documents.  But I need a mole from inside to speak about how the hotel vs. casino operations are doing, and ant other information you my know.  My email link is at the bottom of the page, and I’m as confidential as you ask me to be.  Always.  I hate that Reno’s downtown is being held hostage in what comes down to a family feud, so spill your guts!

Just another month gone by for Reno real estate.  Feel free to go off on tangents!  It’s only a blog.

RealtyTrac has released their latest foreclosure report for the first half of 2010.  According to the report foreclosure activity increased in three-quarters of 206 metro markets with populations of 200,000 or more during the first half of 2010

Of the 20 markets identified by RealtyTrac as having the highest foreclosure rates, all but one were also experiencing double-digit unemployment in June.  Nine of the top 20 markets with the highest foreclosure rates during the first half of the year were in Florida, eight were in California and two markets were in Nevada.

Where does Reno fall in the list?  Of the 206 metro markets with populations of 200,000 or more, Reno ranked 11th in foreclosure activity and 8th in unemployment.

The deadline for appeals to the Washoe County Board of Equalization is January 15.  You’ve still got plenty of time, but it doesn’t hurt to start the process sooner than later.

You can appeal to the County Board of Equalization for a review of your property’s taxable value. From the Assessor’s website: "Please note: the burden of proof is on the taxpayer to show that the valuation is in error or that the taxable value exceeds full cash value (market value)."

Go to this link to download an Appeal Form and to obtain additional information: County Board of Equalization Petition

If you need some recent comparable sales for your property, give me a call at: (775) 722-4011.  I would be happy to assist.

 First a couple new listings, then some trips down memory lane:

-  Remember a few years ago when the market for homes below $200K simply didn’t exist?  It is only recently that  the under $100K market has been addressed, but now there is a market for SFRs under $50K.  Some of them are actually pretty interesting, but others are like 15019 Cuprite which listed today for $49,900 (make sure to view the enlarged pictures!).   Purchased in June 2003 for $212,292, HELOCed a couple times and then refinanced by WFB for $184,500 in July 2007 with a 40 year fixed.  I’m not sure if the "moisture issue" was the reason for the default, but the last mortgage payment was in August 2009.

-  301 E 4th Street  may not register with you until you realize that it is Louis Basque Corner.  For $699,000, you get the restaurant space and,either 23 per the listing or 32 per the Assessor, hotel units.  This building hasn’t changed ownership control for generations, and I’m not sure if Louis is actually the owner or a tenant.  Sure hope they aren’t planning to go anywhere - Louis is a Reno institution.

-  Remember the IHOP house?  Bought by a contractor for $169K as a short sale, the blue roof is now asphalt shingles, the redwood exterior is now stucco and faux stone with some fake craftsmanish detail, the west wing was demolished and rebuilt with higher ceilings (aesthetics or structural problems?). Here’s how it looks today 1 and 2.  Too bad about that 200 foot new sewer line replacement which had to hurt.  We will see how this one plays out if it hits the market.

-  The log cabin on Erminia is listed as "new" for the third time since January.  Ferrari Lund had it for the first month, then Greenstreet took over (worst graphics ever - you can’t read the for sale sign from 20 feet away), and now Ferrari has it back.   After consistent reductions, it is now listed at the same $485,100  Greenstreet last showed.  An interesting perspective from a neighborhood dog walker - every time the asking price got reduced, showings and interest in this house also fell off.   Maybe here’s why:  If it sells at $400K, the buyer will have to come up with $80K down and have about $150K in cash reserves to complete the required maintenance (including a complete re-chinking) and to install landscaping.  There just aren’t that many buyers with that much cash who want a log cabin overlooking a freeway and the headaches required to bring this house to its maximum potential as a $600K home in this market.  What does a cord of firewood go for these days?  It could be Erminia’s ultimate fate.

-  1475 Palisade  and here has been completed (well, mostly) and appears to be occupied by the new owner.   Was it worth it all?  1005 Kit Carson in Verdi is another one of these houses abandoned during construction that I’ll post about when the bank finally gets around to listing it. 

Hope there is something here that piques your interest and generates some feedback and discussion that doesn’t make me run back to my Samuelson Econ 1001 textbook.  I actually get a lot of entertainment value out of reading the comments on the original posts.