September median sold price, units, DOM, and $/sq.ft.

78 comments

1. 

   October 9, 2009 at 3:49 PM

   Sully

   Shelley, I understood your comment. Thats the reason I mentioned a comment by BB.

   Zillow has the house zestimated at 980K. The bank held paper for 590K. The bank wants to sell, hence the 382K listing.

   I’m sorry if you think the house should be selling for more, but I think its priced correctly for the Reno area. Even though I wouldn’t buy it at the current listed price, it would probably be a good buy for someone that needs two houses in one location. 🙂

   Also, on bank owned properties you can have it inspected as a condition of purchase. The bank doesn’t argue, but might put a time limit on getting it done, they don’t want to wait a month for an inspection. If there are any major faults in the house, an inspection would show it and you could back out.

   I still think its price right, even if it is in Caughlin Ranch. The fact its going for far lower than would be expected, this might be a sign of things to come. The house on Muirwood is another example. The high end is starting to collapse and reality is setting in with the banks. Its not personal, just business.

2. 

   October 9, 2009 at 3:50 PM

   Walter

   For the sake of every homeowner in Reno, let us hope that this house on Juniper Trail does have some issue with it. Because if this happens to represent a new aggressive pricing strategy by banks and their REOs, that is sobering.

   Maybe the bank is hoping to create an auction mentality?

3. 

   October 9, 2009 at 4:51 PM

   bob c

   walter and everyone else—-

   that home could be an epic listing and all
   info about its condition and what it gets
   taken out for will be a huge sign of our future

   if i were a realtor, i would get down there right away (i’ll bet the place is over-run) and find
   out all i can

   no time for specualation on this one—we need
   facts

   thank you in advance to any and all facts about
   this property

   sincerely, bob c

4. 

   October 9, 2009 at 6:16 PM

   bondstevenbond

   “For the sake of every homeowner in Reno, let us hope that this house on Juniper Trail does have some issue with it. Because if this happens to represent a new aggressive pricing strategy by banks and their REOs, that is sobering.”

   Oh Walter. Should we renters and first time homebuyers really shed a tear for you homeowners? The same is true for homes and women. One man’s dream is another man’s nightmare.

5. 

   October 9, 2009 at 6:50 PM

   FutureRenoHomeBuyer

   Green,
   Yes, I toured 4280 Juniper Trail about 3 weeks ago. At that point, the price was $575k. I felt that that was a bit rich, even for Caughlin Ranch.

   The place definitely has potential. Someone with high level handyman/contracting/woodworking skills could do alot with it. As my RE Agent said, it’s one way to buy into a very high end area.

   However, I would call the place “unfinished” at best — at least the downstairs. The “finished” basement would require tens of thousands of dollars, minimum, to make it liveable. We are talking finishing off what looked to be an ambitious renovation project. There is one really nice wood panelled and green room. Looks like a nice poker room. The other rooms require electrical/paint/panelling/carpeting, etc….

   Additionally, although it is advertised as being on a .5 acre lot, there wasn’t much room to roam. Felt to me like the house took up all the usable space on the lot, even though it is multi-level.

   In short, I felt it required too much work to interest me at $575. Having no real yard also was a detractor. What was available was heavily sloped. Prop taxes were also a downer, but no one in that neighborhood will pay cheaply on prop taxes. At $382k, someone with significant contracting skills/connections could really do something with it, but I’ll estimate you’ll need $150-200k, minimum, to get the place where you want it. I hope this helps. It’d be great if someone could take this place and finish it off, but I think a builder/contractor would be the best fit. FWIW.

6. 

   October 9, 2009 at 8:33 PM

   johnny

   reno newbie stated:

   “unemployment must be solved to turn market”

   unemployment is a LAGGING indicator!

   and if you think there is more downside than $73/sqft in caughlin ranch.. well you simply should never buy..

7. 

   October 9, 2009 at 8:45 PM

   Worried Guy

   Johnny,

   Unemployment is running at well over -200,000 jobs per month in the U.S. You need a minimum of +200,000 jobs just to cover new entrants into the workforce. In addition, the U.S. needs now another 7 million quality paying jobs to make up for the last 10 years’ loss. It is not a lagging indicator in this instance because the average consumer in the U.S. does not have sufficient savings to make up the difference of lost employment. The lack of savings is the direct result of misguided monetary and tax policies ongoing for decades now. In addition, there has been over 6 months of consumer credit contraction numbering well over $10 Billion per month. These types of numbers on a percentage basis were not even witnessed in the early 1930’s in the U.S. A home in Caughlin Ranch could go for under $50 per square foot to match the real income and employment levels in the Reno area. There is a long history of severe undervaluations at the real bottom once a financial bubble bursts. This being one of the largest ‘credit’ financial bubbles in U.S. History should see the same fate. It is true the Gvt., Fed et al are trying every trick in the book from breaking accounting rules to monetizing debt, but in the end it comes down to income and employment. Both are severely lacking in this economic environment.

8. 

   October 9, 2009 at 9:33 PM

   Tanner

   “in the end it comes down to income and employment.” ahh yes.

   Did you all see where Bailey, Banks & Biddle overpriced jewelry stores are closing at Meadowood and Summit malls? It seems that when the HELOC spigot got turned off, people lost their ability to buy things they can’t really afford.
   Give it 5 more years, and the Summit Mall will be a fine collection of yogurt shops, pizza joints, and Payless Shoes. Unless the whole place gets turned into a giant Wal-Mart. It will fit right in when the houses in Arrowcreek are selling for $275K, and houses in Double Diamond are selling for $125K.

9. 

   October 9, 2009 at 11:03 PM

   johnny

   worried guy

   I was just trying to point out that unemployment will not go down untill AFTER the economy has entered a recovery.

   That has been true with every recession and in that regards this recession will do the same.

   now if you want to talk about unemployment claims then that IS a leading indicator, or even non-agricultural payrolls which is a coincidence Indicator that’s fine.

   but if anyone is thinking the recover won’t start until unemployment goes down, then they are mistaken.

10. 

    October 9, 2009 at 11:10 PM

    johnny

    Besides if someone thinks they can buy in Caughlin ranch for under $50/sqft, they are simply trying to time the market.. and as well know that is much easier said than done..

    For me, I’m just happy I paid $78/sqft and not $200+/sqft back in 04′-05′.

    I was patient enough to wait for 5 years! Life is too short for me to sit around and wait another 5 years to buy a house!

11. 

    October 9, 2009 at 11:40 PM

    skeptical

    Johnny,
    Congrats on your home purchase. Seems to me you made the right call. You are also correct that unemployment is a lagging indicator of economic expansion.

    However, unemployment is NOT a lagging indicator of real estate prices. It is a leading indicator. People with jobs buy houses. People without jobs do not. People without jobs after a long enough stretch get foreclosed upon.

    Further, I think the rest of the country will be in an economic recovery before Nevada. Nevada is very dependant on tourism, which will not rebound until after a national recovery is under way. After a few months of brisk business, the casinos, hotels, restaurants, and bars of Reno and LV may stop firing/start hiring, but not until.

    So, bottom line. A national recovery will lead to increased tourism, which will lead to a stabilization or improvement of unemployment in Reno, which will lead to a stabilizing real estate market. I think we are a few steps away from a stabilizing real estate market. No reason to buy before springtime, IMHO.

12. 

    October 9, 2009 at 11:48 PM

    Carney

    before springtime?

    springtime of 2013.

13. 

    October 10, 2009 at 7:27 AM

    Worried Guy

    Johnny,

    Busts follow booms and especially booms based from misguided monetary and tax policies that result in massive false credit and debt bubbles. The larger that type of boom, the larger the bust. The contraction in credit and the expansion of job losses are telling us that the bust in housing and banking is not over yet. Soon, we are going to see a massive move toward the continued reconciliation of this crony capitalism. Do not be fooled by some temporary juice in the equity markets or commodities. Bearishness against the USD has reached record lows. We could see a huge counter move if equity and commodity markets start to tumble. In addition, a renewed recognition that the banking crisis has not passed is going to put pressure on real estate valuations once again. Just my thoughts, but congrats on your purchase. I agree life is too short to worry about tomorrow sometimes and you did at least get 2002-03′ pricing so that’s an accomplishment in and of itself. Maybe keep some powder dry for future bargains.

14. 

    October 10, 2009 at 7:54 AM

    smarten

    Johnny, I too congratulate you.

    If your cost/square foot is less than the comparable cost/square foot to replace, this tells me you’re never going to see new, replacement construction…period. If you believe new construction will resume sometime in the future; and the cost of materials/labor will exceed the cost/square foot you’ve paid; then IMO you’ve made a savvy purchase and it doesn’t matter that in the near term future prices/square foot may drop lower [BTW, so will your choices]. Stated differently, time heals all wounds.

    And thanks for sharing the details and reasoning behind your recent purchase!

15. 

    October 10, 2009 at 8:15 AM

    bob c

    if real estate prices are going to fully collapse,
    then there are many financial ways to play besides
    not buying a home

    short sell REITs, home price indexes, banks and
    if we are in for a depression the dollar and most
    asset classes

    i knew a doctor when i was a kid that buried gold
    under his home and had guns because the economy
    was going to collapse and that was like 40 years ago….i guess he’s still waiting for armagedon

    and if it does occur, his preparations will probably be mute anyway

    if you can buy a home for less than the cost to
    rebuild it………i also agree life is too short,
    no need second guessing your deal and be overjoyed you didn’t buy the bubble and face the
    misery of a foreclosure

    its hard not to bite during a mania—that
    took some real restraint, so congratulate yourself and enjoy

16. 

    October 10, 2009 at 11:21 AM

    johnny

    I appreciate the congrats folks.

    BTW the house previously sold for $329k in 2nd quarter 2006 or 42.5% of the “bubble” price.

    I will indeed keep some powder Dry worried guy 🙂

17. 

    October 10, 2009 at 3:52 PM

    DownButNotOut

    Off the subject a little but if Arnie passes the bill now in front of him making handgun ammo no longer available without it being registered in California, and if Obama’s IRS is successful in passing HR45, the law requiring ALL guns be registered for a $50 fee with the IRS, then keeping our powder dry might be the least of our worries.I’m not a conspiracy nut, but I do like the Government staying out of my life to the degree it’s practical.

18. 

    October 10, 2009 at 10:31 PM

    John Rusin

    For accuracy’s sake, I have to correct you… HR45 is nothing as you described. It’s a good idea to check snopes.com before you spread rumors.

19. 

    October 11, 2009 at 11:49 AM

    DownButNotOut

    JRusin – per Snope ‘In a nutshell, the Blair Holt bill would; Prohibit possession of any handguns or any semiautomatic firearms that can accept detachable ammunition–feeding devices by anyone who has not been issued a firearm license’ It goes on to say all these guns need to be registered, unless they are of ‘antique’ status.

    I wrote’if Obama’s IRS is successful in passing HR45, the law requiring ALL guns be registered for a $50 fee with the IRS’

    Sorry JR but it reads the same to me. HR45 is the Blair Holt bill.

20. 

    October 11, 2009 at 2:14 PM

    John Rusin

    I’m sorry to correct you, but you are making little sense. The IRS does not push bills through Congress. There is nothing in the bill that says anything about a $50 fee or any involvement by the IRS. It basically proposes selling guns only through licensed dealers.

    Please, this is a real estate investment board. Take the gun talk to an appropriate forum.

21. 

    October 12, 2009 at 7:57 AM

    johnny

    well that ended on a sour note! lol

22. 

    October 12, 2009 at 9:17 AM

    bob c

    Wait a minute……i’m a lobbyist for the IRS.

23. 

    October 12, 2009 at 3:30 PM

    Sully

    bob c I hope you forgot the 🙂 in that last comment.

24. 

    October 12, 2009 at 3:50 PM

    skeptical

    Bob C,
    A little late for a reply to your post, but this thread is drying up anyway, so here I go.

    “i knew a doctor when i was a kid that buried gold
    under his home and had guns because the economy
    was going to collapse and that was like 40 years ago….i guess he’s still waiting for armagedon.”

    Well, if that guy really did buy his gold 40yrs ago (1970), he got it at close to $35/oz. As many are likely aware, gold is now trading at ~$1,050/oz. I defy anybody out there to find a better trade than that one in the time frame specified. And, as long as the Fed is hell bent on printing our greenback into oblivion, I suspect the next 40yrs won’t be so bad for gold either.

    But, this is a real estate blog, so I’ll tie it in to the subject matter. Real assets will increase in value due to this massive money printing experiment underway. Even the most bearish out there need to consider that if the quantitative easing takes hold, that house you purchase today for $200k will sell for much, much more by the end of the decade. The trend hasn’t begun yet, but when it happens, it’ll be like moonshot.

    Now, don’t get me wrong. I don’t believe that the underlying value of real estate will increase meaningfully above historically norms anytime soon. But I do believe the value of our fiat currency will implode.

25. 

    October 12, 2009 at 4:31 PM

    Worried Guy

    Or the value of the $200K home drops by another 50% and the $1000-USD today becomes worth $5000-$10,000 over the period of time. Commodities, equities, real estate, wages-jobs all decline as debt pay down becomes the order of the day. That would really blow everybody’s minds. Bearishness on the USD is now at 97-98% levels. Bullishness on USD-3%. This is an unheard of lopsided trade that could unwind rather sharply.

26. 

    October 12, 2009 at 4:35 PM

    bob c

    completely understood, but the gold was so he
    could buy goods…not for capital appreciation

    and i agree…..the goal is to inflate our way out
    of housing crisis……the value of the home
    goes up, but in real terms it loses value because
    the inflation rate will exceed the rate of home
    apprecation

27. 

    October 12, 2009 at 4:41 PM

    bob c

    deflation thought gives me a headache…so
    i’m gunna play ostrich on that topic and just
    assume the U S will survive relatively intact

28. 

    October 12, 2009 at 5:09 PM

    DownButNotOut

    Real Estate blog? Crap – I must have transposed NAR search to NRA.Won’t happen again.