In a follow-up to Sunday’s post showing Washoe County’s NOD’s (Notices of Default), today I am posting Washoe County’s foreclosure data spanning 2006-2007 [click on the graph below to see all the data]. This data shows the number of foreclosed homes, the number foreclosed home sales, and the number of foreclosed homes still owned by financial institutions. The data contained in the tables is aggregated quarterly and is also broken out by sub-region.
The numbers are remarkable and the graph is telling. We’ve all seen the recent headlines in the RGJ, “Foreclosures Up 614%”, but to see the rapid rise over the last two years pictorially is quite dramatic. To look at it another way: two years ago (Q1 2006) Washoe County was averaging less than three foreclosures a month; today Washoe County is averaging three a day!
Again, we thank our friends at Ticor Title for providing this data.
Click on the graph below to see the data.
BanteringBear
With 525 bank owned houses languishing on the market as of the end of 2007, it appears as if the financial institutions who own them are still collectively in the denial stage of grief. How many more houses must accumulate until they cry uncle? The longer those homes sit, the less they are worth-even in an environment of stable pricing. With prices rapidly declining, these guys are taking a real reaming, if you know what I mean.
Something funny comes to mind. Where are all of those “brilliant” real estate investors of yesteryear? You know, the second comings of Donald Trump. The ones who were, oftentimes sight unseen, buying up the 60’s 3/2/2 tract homes for $300k-$400k because they were such bargains. Surely they’d want in on this action now that prices have dropped more than $100k, no? Oh, that’s right, they’re the ones losing these homes. Well who’s left to buy them now? Oh, that’s riiiiight, only people who can actually afford them. But at these prices, they largely don’t exist. So down in price all homes go, back to where they were before the whole bubble started. Imagine that.
John Newell
After speaking to a few loss mitigation workers at financial institutions, I have come to the understanding that the financial institutions would rather retake and then sell the property as soon as possible rather than working with the debtor because they don’t want to be left holding on to a note that could go from bad to worse at any time. However, this strategy seems to be quite problematic in a saturated and declining market. Unfortunately, the loss mitigation people I have dealt with either don’t realize this or are at the mercy of officers and directors who don’t realize this (or don’t want to admit it).
Sully
Yeah John, All of the above.
GreenNV
The good news is that the banks managed to sell 117 of their REOs in January and February according to the Center for Regional Studies. The bad news is that they acquired 263 additional properties during the same period. And 108 more so far this month.
If the Center for Regional Studies is right (and I generally trust their data, but can’t independently verify this one), over 25% of current resales are REOs.
SkrapGuy
Green:
Over 25% of current resales are REOs?
If there about 4,000 or so resales on the market, that would mean about 1000 are REOs. Wow.
A couple of weeks ago, under your post about how banks may be taking 40% off of peak bubble prices, I asked what percentage of the market would have to be REOs before the banks were basically setting the comps with their REOs. I would think that once we get into the zone of 25% of the market being bank repossessions, we may be very close to the time that non-foreclosure resellers will have no choice but to follow the banks down. Unless, of course, they don’t mind taking up MLS space for the next few years.
Perry
Here’s a short sale that is supposedly approved by Countrywide. 370 Jackson Springs. Listed at $475k for 3193sq’. Sold 12/05 $638k. I think Lennar really stuck it to some people in Sterling Pointe.
I know of a family that really felt uneasy and was going to back out of a house there. They stood to loose several thousand and Lennar laid down the contractual garbage on them. About a week after they closed Lennar dropped the prices.
Josh
Why aren’t more people upset at these builders? From my home in the Southwest I look north and see a sea of stucco yucko communities as my wife and I call them.
It seems like if the city had a master plan and understood growth needs, while respecting the sense of community and natural beauty inherent to Reno, many of these overpriced crappy projects would not have been green lighted.
There is plenty of blame to go around, but the insane profit taking of greedy builders, selling crappy stucco boxes in the sixes and higher really ought to be strung up from the closest tree if this were the Nevada of old.
Of the lessons to be learned, I hope our city council and planning commissioners drive around looking at these horrific non-communities and ask themselves “what have we done?”
Josh
inclinejj
BanteringBear said
Something funny comes to mind. Where are all of those “brilliant” real estate investors of yesteryear? You know, the second comings of Donald Trump. The ones who were, oftentimes sight unseen, buying up the 60’s 3/2/2 tract homes for $300k-$400k because they were such bargains.
Ever hear of the saying..pigs get fed hogs get butchered….???