So the buzz around the water cooler this morning was the lead article in this morning’s RGJ. Apparently, in a new report issued by Global Insight/National City, Reno-area home values have now declined to point where they are now just below what the report considers absolute fair value.
The report determines “fair value” based on typical house prices, interest rates, household incomes, population densities and historical prices over the last 25 years. The RGJ article also contained a chart showing how Reno’s downward median sales price curve has now met the “Statistical normal value” curve for homes in the area.
According to the report, the value of Reno-Sparks area homes for the first quarter of the past four years has been…(see table below)
| Q1 of… | Home values: |
| 2005 | 29.4% Overvalued |
| 2006 | 40.6% Overvalued |
| 2007 | 25.3% Overvalued |
| 2008 | 0.2% Undervalued |
Allen Murray
Green, I appreciate risk taking and hope it pays off. The problem is that most people aren’t builders or architects and cannot visualize a finished product. If you don’t have any luck selling the property, you may have to build it, and hopefully they will come……….
BanteringBear
Allen Murray posted:
“The problem is that most people aren’t builders or architects and cannot visualize a finished product.”
This is a valid statement, especially when it pertains to “unusual” parcels, with or without structures. “Potential” may have worked on the way up, but it’s a killer on the way down. Case in point, the $800k barn (bwahahahahahaha!…oops sorry Diane) which is NOT selling. If people have such a strong vision, they should carry it out themselves, because others could care less. Only rightly priced, prime properties are selling now.
homepop
Thanks to all who responded to my question!