In reviewing the Housing Sales –3rd Quarter 2008, Incline Village, Nevada report from the Center For Regional Studies at University of Nevada, Reno and provided by First Centennial Title Co., it appears that the median sales price has increased by 9% over 2nd quarter 2008 although it is down 16.3% from 3rd quarter 2007.
Phil
I also heard that nation wide sales of new homes are up.
BUT!!!!
Do not get to excited as there is some evidience that some builders are selling at or below cost to get rid of inventory. And considering the time of year this may make sense in many areas of the contry.
As for IV, interesting numbers for sure.
smarten
One measure of a market bottom is unit sales. Do you know how many SFR sales there have been in IV for the month of October? FOUR. Since this number can’t physically go much lower, you’re right; we may be close to a unit sales bottom.
Paul
Joanne- What has happened in Incline is that unit sales have fallen to such a low number that they can no longer provide statistically meaningful median price data. On the ground, the market here is DEAD. With the recession impacting the Bay Area, the falling stock market, collapsing demand for luxury goods i.e. vacation homes, higher taxes on income and capital gains in the pipeline, Incline Village’s chickens are coming home to roost. Other luxury markets have a better economic floor under them in terms of market rents. In Incline, a 1 Million dollar home might fetch perhaps only 2k/ month on the rental market. This tells me that the Incline market still has enormous downside risk.
Inclinejj
Hmm lets see is Incline dead..
For the cash buyer or the guy who can come in with 50% down, full documentation, has 6 to 12 months reserves, Doesn’t mind giving the lender a DNA sample and getting raked over the coals to get a jumbo loan not really
For the guy who wants to go Jumbo stated..forget about it..
Jumbo Stated is toast..You won’t get jumbo stated anywhere..Plus take a look at Jumbo rates..No one wants to fund Jumbo loans
WAMU and Wachovia aka World Savings is toast. 2 of the biggest lenders of stated loans..
With the stock market down almost 50 perecent, with layoffs starting to add up, with the equity line easy cash gone, the spend epend days are over..
The thing about Incline is only 1/3rd of the housing stock has a mortgage on it..
I need to re run my numbers again and will post what I find out
billddrummer
I agree with the respondents. No jumbo mortgage money available, and less surplus cash around because of the drop in the stock market equals less demand for discretionary purchases (2nd homes).
Not only that, but so few closings makes any value judgments virtually impossible. As Paul pointed out, volume is so low now that trying to use these numbers to call a floor is specious.
smarten
So I was driving down prestigious Lakeshore Blvd. [in Incline Village] this morning and saw a sign on top of an agent’s for sale sign that I’ve never seen before which is kind of a sign of the times: “make offer.”
Now this is new construction that originally came on the market at about $5.3M and then took a $1M haircut so I don’t know how far Joe the Plumber’s offer is going to go. But nonetheless…
Inclinejj
The property I have had my eyes on is a block from the lake..The guy wants 2 mil for it..I told him to call me when he would take 1 mil for it..My spies tell me he took a tremendous hit in the stock market decline..
I will be waiting for my phone to ring
billddrummer
Sounds good, jj.
I’m waiting as well. But I need my income to rise as well as prices to fall, so it may be awhile.
billddrummer
Back on topic:
As many of you know, my house was foreclosed on twice–once in January, with a May sale date, when I filed Chapter 13 the day of the sale to stop the auction–and the second time in September, after the lender had the stay lifted.
Review of the property history shows that I got a $216,000 first, that was paid down to $201,450 by the auction date, and a $21,000 second.
The second lienholder didn’t cure the first and didn’t file a default notice either. (I’ve got a side note I pay on every 2 weeks, but that’s another story for another time.)
Anyway, the bank sold the property on 6/16/08 for $197,816. The buyer got a VA loan for 100% of the purchase price (which I still think is high, considering the condition of the house). Maybe the guy is handy.
But the sale price was 27% lower than the appraised value when I refinanced it in April. The refinance was to cash out my ex-wife for her share of the equity, because she quit-claimed her interest to me shortly after the loan was done.
Clearly, the 2nd mortgage holder was wiped out, and the original lender took a small charge on its outstanding balance.
The irony about this is that the only reason the first was paid down was because I used most of the funds from the second to cure it and to pay back child support.
Well, now, I’ve still got back child support, still owe the 2nd mortgage holder, and am still listed as owner of record according to the assessor’s website.
At least I don’t get tax notices anymore.
Inclinejj
That is why 2nd loans are being sold for 2 to 4 cents on the dollar regardless if they are proforming or not
Like I told the owner of the house, My place in Incline is paid for and I don’t have to sell it in order to buy another house..
Get real on the price and sell or lose it to foreclosed on
smarten
Well, something new has occurred with respect to Incline Village real estate which MAY spur some type of increase in “demand” and it comes from an unlikely source: Real Estate Taxes!
In 2003-04 the County Assessor reappraised all Incline Village/Crystal Bay properties resulting in massive increases. This reappraisal was challenged by 17 property owners resulting in a Supreme Court decision which declared that the methods used by the Assessor to reappraise were unconstitutional. The Supreme Court ordered the Assessor to roll back assessed valuations for these 17 properties back to 2002-03 levels; refund the excess taxes collected; and, pay the taxpayers 6% on top of their refunds.
The following year while the case of the 17 eventual winning taxpayers was pending, another 300 Incline Village/Crystal Bay property owners challenged their assessments based upon similar grounds. The Board of Assessment Appeals eventually determined they too were entitled to the same relief as the original 17 property owners, based upon the identical reasoning.
Then because the law requires ALL County assessments to be uniform, the County Board decided to roll back ALL 9,000+ Incline Village/Crystal Bay assessments to 2002-03 levels; refund all property owners the excess taxes collected; and, pay 6% on those refunds. We’re talking $12M in refunds just for 2006-07!
The County Assessor challenged this determination and the decision was just decided in the taxpayers’ favor by the Supreme Court. If you’re interested, you can read the decision at:
http://www.nevadapropertytaxrevolt.org/08/NV-SupremeCourt-081030.pdf
If ALL Incline Village/Crystal Bay properties’ assessed valuations are being rolled back to 2002-03 levels; tax obligations are being retroactively recalculated and refunds being issued; and, there’s legislation which caps future residential tax increases to no more than 3% annually; it may be that future property tax bills for Incline Village/Crystal Bay residential properties are going to be markedly lower than they are today. How much lower I can’t determine but just the prospect of lower property taxes may be another of a number of factors which end up increasing ownership demand. It’s certainly something to keep an eye on.
Sully
An interesting article for anyone thinking we are near a bottom in market pricing.
http://www.moneyandmarkets.com/the-great-american-housing-nightmare-next-phase-27880
Inclinejj
No one has seen any of the money to be refunded yet..the county probably doesn’t have the money and no one has said if check will be mailed back to everyone or a credit will be taken on future taxes..
This will do nothing for home sales in Incline Village..If you can not afford a house due to the yearly tax bill you can not afford the house period..
I have heard so many people say..I was never told my tax bill would be 10k a year.It isn’t far the neighbors who bought years ago pay 1k per year..
I bet the number of tax defaulted properties this year is going to go thru the roof
billddrummer
I agree with Incline on this one. It’s more likely that tax credits will be issued than checks–let’s face facts:
Tax receipts are dropping in part because of the number of defaulted mortgages and vacant buildings.
Demands on the county are rising because of economic stress.
Don’t expect a check from the county as a tax refund.
Inclinejj
I am not really looking forward in getting anything back..
They will find another stall tactic and try to prolong mailing back anything..credit or check
I am not holding my breath
Lexi Cerretti
Recent sales in Incline Village continue to slump while buyers wait and watch for the prices to bottom. The median sales price of a single family home in Incline Village, dropped to $1,115,360 year to date through September 30, 2007, down 10% from $1,245,500 over the same period last year.
Sales volume dropped 31%, as 74 homes sold through the first 9 months of 2008 compared to 108 during the same period in 2007. Read the Incline Real Estate Report here…
Reno DJ
Check it again, I bet it is even lower now.