Some odds and ends for weekend discussion:
– The Notice of Sale for the Cal Neva Resort and Spa was posted today. See you on the courthouse steps 8 April 2009 at 11 AM. Estimated debt at sale date is $26,816,549.29.
– Mitch Argon has a fun new feature on his site – Recently Reduced Properties. It tracks reductions over the last five days by price band. Interesting correlation between what is selling and what is being reduced.
– For all you Cramer haters, you have to watch the video of him getting scathed last night by Jon Stewart on the Daily Show. Cramer starts at about 4:40 in.
– Winnemucca Ranch / Spring Mountain received it’s final approval yesterday, though there are already law suits lining up against it. I have certain opinions about the wisdom of building a 12,000 house development 30 miles outside of downtown Reno. I look forward to hearing yours. You can see their development book here.
– 8656 18th Hole just relisted in Somersett. It was purchased just 7 months ago (I think it was a model) for $513,625 and is now listed at $400,000. That’s a $16,000 a month burn rate before factoring in transaction costs. Also in the ‘Sett, an investor snagged 2165 Maple Leaf at auction for $248,500 this week. Purchased in October 2005 for $598,670, there was $550,000 due on the note at the trustee’s sale. This property has lost $8500 a month since it was purchased. 1940 Bechtol Ridge just listed at $549,000, down from $892,518 in May 2006 – $10,000 per month.
– I’m getting a "That page doesn’t exist’ message for Chase Nation. Probably just a network glitch?
– The best comment of the week (or maybe forever) had to be Grand Wazoo’s "smells like stucco!" on the TICOR thread. You make all the work that goes into this blog worthwhile, sometimes. Have a great weekend.
GratefulD_420
I can’t believe the Uranium King’s place passed the steps for a measley $3.1 M
4045 S OLD US HWY 395
Now that IS a special beauty nestled at the northern tip of the Sierra Nevada’s.
So would the bank not allow sale at court steps OR is no one willing to pay $3.1 M cash for the Charlie Steen’s mansion ?
Reno Ignoramus
$16,000 a month burn rate may be a new Somersett record. Up to now, I think the burn rate record was held by the house on Russell Pointe that lost $11,000 a month. However, the Russell Pointe house lost $11,000 a month for 36 consecutive months. So I would say it still holds a place of honor in the Somersett Vail of Tears.
Reno Ignoramus
I also note tonight that there is now a 700 sq. ft. condo on the market for $20,000.
Down and down we go.
Watch out Detroit, Reno is gainin’ on ya.
Walter
That priced reduced data is pretty insightful.In the last 5 days, the number of listings under $300K that have reduced the price is 119. The number of listings over $300K that have price reduced is….27.
Of all the listings priced over $500K, only 8 reduced the price.
Looks like the owners of the upper end listings “will be damned if I/m just going to give it away.”
cash buyer
gotta love it “despite buyers market and the economy reno is booming” guess we are all idiots http://reno.craigslist.org/reo/1062764558.html
Ralph
That Detroit comment isn’t all that far off. Look at MLS #90003824. This is a beater house in Stead listed for $30K. Now in Detroit it would probably be listed for $10K, or less. But give this collapsing beater house market 6 more months, and we may see places like this for sale for $15K. Right here in Reno, the hidden gem of the Sierras.
Walter
That house in Stead is an interesting study. It sold in 9/81 for $45K. Sold in 6/95 for $55K. Then along came the bubble and it sold in 3/07 for $179K. Just went back to the bank for $154K. Now on the market at $30K.
The lesson here is that in the 14 year period between 1981 and 1995, this house went up in value $10K. That is what happened all over Reno in that time period before the bubble arrived. Houses always beat the pace of inflation?? Don’t make me laugh.
Starting when this house sold in 2007 with a bubble loan, all the nonsense set in.
Sully
Spring Mountain – according to an article by the RGJ editorial board, officals and developers seem to have accounted for most contingenies. Hmmm, does that include getting a loan for the 6.2 Billion in estimated construction costs?
I see Cold Springs, Red Rock and Stead house prices falling like a rock. My guess is they are too far out for most people to commute. So putting a development even further out is going to attract 12K families?
Just what Reno needs, another large expensive development that will add to the “For Sale” list and keep this high end market dead in the water for another 20 years.
diablo
I think most of you need to stop micro managing the market. Especially BB and a few others..
you have turned this blog into the local DIVE bar.. good job..
now go outside, see a show, have dinner, do something.. instead of rotting in front of a computer screen all day.
🙂
BanteringBear
Definitely an odor of oracular nature around here, lately.
The life and times of an attention (and oxygen) starved Ithican beverage opener:
Burst onto local blog making baseless assertions and predictions regarding real estate and other “investments” which one knows nothing about, while indiscriminately insulting random posters- even those gracious enough to accommodate thee. When predictions prove to be folly, show true yellow-bellied nature by disappearing rather than owning up to shortcomings. Lay low for a period of time, then, in thinly veiled attempt to distance oneself from embarrassing past utterances, show back up under a new moniker- only to immediately blow one’s cover by making the same disparaging remarks littered with the same errors in spelling, punctuation, and grammar. Intelligent!
smarten
Who you talking about BB?
I guess it was “the local DIVE bar” reference that gave him away [remember, he graduated suma cum I bought my house for cash from bar tender’s school].
SkrapGuy
I told you all the other day the derrick diablo was back. It was his trademark typically eloquent and articulate insult of BB that gave him away.
DownButNotOut
SkrapGuy – Derrick was before my time but insulting BB alone doesn’t necessarily make him a bad guy…
Just kidding BB.
bondstevenbond
Thanks Mike for postings about Montage and Somersett. 8656 18th Hole at Somersett is not a model. It only has a view and some upgrades. It was purchased recently for $514k and now is listed at $400k. Hmmmm…must be REALLY NICE upgrades, considering that zillow.com is reporting 2 virtually identical houses on the same street sold as recently as 4 weeks ago in the $304k to $310k range. My apologies to current owners of Montage and Somersett, but as a renter for the past couple of years I just can’t help but enjoy watching these train wrecks.
So does anyone know the golf course situation at Somersett? I would want to be an owner there the day they the water sprinklers off. Alarmist? Won’t happen? Ok, I will re-phrase: I wouldn’t want to buy at Somersett until I know exactly how the golf course is financed. I wouldn’t want to own there when someone from Somersett knocks on my door with an offer I can’t refuse!
Paul
ChaseNation is still dark??
Dickson Incline folded into Coldwell Banker according to Friday’s Bonanza. Does anyone know what is going to happen to the big new office building they put up on Village Blvd?
Reno Ignoramus
7820 Morgan Pointe Cr., in Somersette, sold initially in 2/03 for $315,000. It then sold in 8/06 for $425,000. Now it’s listed for sale at $265,000.
So it’s looking more and more that we have now moved much, perhaps most, of Somersette back to 2002 pricing. Which is interesting, because most of Somersette wasn’t even built in 2002. In other words, a lot of Somersette now is selling for less than the original pricing when the builders were first selling back in 2003.
Three years ago, when I first started posting on this blog, I said that all of Somersette was built on the bubble, and that the day would arrive when houses would be selling there for less than original pricing. I was blasted pretty good by a lot of Somersette debtowners at the time. One guy, named Judge and Jury or some such thing, was particularly vocal about how stupid I was. Well, Mr. Judge and Jury, if you are still around, I’d love to hear from you.
SkrapGuy
RI, many of us here have noted that Somersette is a trainwreck. I believe its been the case for quite a while now that houses in Somersette are selling for less than original prices, at least regarding houses originally sold since 2005. Remember when we used to locate and describe all the flippers that got burned in Somersette? But you are right in one regard, now that houses initially sold in 2003 are selling for less than original pricing, the collapse of the Somersette bubble appears to be complete. The only question left now is how much more will prices there continue to collapse?
Also, remember when there used to be vacant lots in Somersette asking $400K? I can still remember BB absolutely devastating those listings.
Raymond
Dickson and CB have merged at IV?
Chase Nation is still off the air?
Now, that’s not the “glass is half full” kind of happy talk that one is required to engage in when talking about Lake Tahoe real estate is it?
Marla
I just tried to connect to Chase Nation and got the message “that site doesn’t exist.”
Surely this must be some software malfunction or some such thing. The world needs as many of these realtor shill hype sites as possible, and losing Chase Nation would be just awful.
DonC
The Mitch Argon site tracking the price reductions seems like an interesting feature. The time frame may be a bit too short but the idea is useful. Marla and Smarten, you are plugged in for the IV properties, do these listings look better than average?
The Somersett development is not appealing to me but what is on the market looks like a lot of house for the money at this point. When you consider the lower interest rates you can get today, you could buy one of these houses for a lower monthly payment than you could in 2002. Assuming of course you could get a loan.
Sully
For anyone interested – this is an interesting article comparing the US bubble to the Japanese bubble. Using major cities and overall. The US bubble is bigger overall, but less when only major cities are used. Also, shows where we might be in relation to a bottom.
http://seattlebubble.com/blog/2008/11/03/comparing-the-us-and-japanese-housing-bubbles/
Guy Johnson
Regarding ChaseNation, it looks like the redirect URL (www.chasenation.com) is no longer redirecting.
Try accessing the site via this URL:
http://chasenation.ning.com/
inclinejj
ChaseNation is still dark??
Dickson Incline folded into Coldwell Banker according to Friday’s Bonanza. Does anyone know what is going to happen to the big new office building they put up on Village Blvd?
The building next to Subway..right across the parking lot of Raley’s center?
Marla
Ahh so I see that Chase Nation is still with us. Whew.
And I also see that Guy is going to be talking at the meeting of women realtors in a couple of days. So, Guy, what are you going to tell the women?
And I’m curious, is there an organization of men realtors?
Paul
Incline jj – that’s the one.