The latest Washoe County recording stats have just been released by our friends at Ticor Title. September saw:
- Re-fis continue to fall; down 15% from August’s number
- New homes sales up nearly 13% over August’s new home sales
- Resales also increased nearly 13% over August’s number
Washoe County resales hit 719 units in September. Though not shown on the graph, I had to go back to the bubble years to find the last time a month had at least that many resales. It was way back in June 2006, when 759 resales were recorded in the county.
Washoe County Notice of Default filings for September totaled 930; down 12.8% from August’s whopping 1,067.
Click on the charts below to enlarge.
Reno Ignoramus
The idea that Nevada ought to cooperate with Yucca and seek compensation for it is not new. For at least twenty years, former Gov. Bob List has publicly advocated the idea. No other politician, of either party, has ever come forward to agree with List. Rather, the opposite has happened, to the extent that no Nevada politician can claim bona fides unless he/she goes on record as opposing the project.
BanteringBear
Smarten-
I might have been a little hard on you there. Didn’t mean to sound so harsh, it’s just that I was flabbergasted by your posts. There is no comparison between you and Derrick. For that, I apologize. That was a low blow. You’re a smart man, and that’s why I am so confounded by some of the things you said. We’ve gone round and round about interest rates, inflation, and many things over the years, and we’ve definitely got some opposing viewpoints, so I’ll agree to disagree on things with you. But, you better not pull a disappearing act should my prognostications prove true.
bob c
Commodity and import inflation, wage and asset stagnation, continued low interest rates is my prediction.
johnny
time to take some more meds BB.
mr. bipolar
nvmojo
Wrong. List went to Elko about 10 years ago and got the city council, county commission and members of the local community college on board. They humped his leg like crazy over this deal. Great Basin College stood to gain from Yucca Mtn expanding and becoming viable. Elko stood to gain due to transportation connections.
The problem was that List just doesn’t have credibility statewide and the old argument he packed around –we can become like Alaskans and get pay for every resident for taking nuke waste! — didn’t fly. There is a world of difference when your state is selling off a natural resource like OIL compared to sucking in waste like NUCLEAR WASTE.
skeptical
Sane Economist,
Just like an economist to guess that in four years “both mortgage rates and 10 yr yields well pretty much be where they are right now.”
Well, heck. And the skies opened up and the birds where chirping and light shone in the darkness. Thanks for your amazing insight. How many years did you go to school for that?
I suggest you read “The Black Swan” by Nasim Taleb. You just might learn something.
As it stands, your credibility is shot.
The correct answer is “I don’t know, and neither does anyone else on the planet. And anyone trying to hazard a guess beyond six months is either an idiot or a shill.” But I guess they didn’t teach that at the JC where you got your degree…
As for why home prices will increase in the coming years? You cannot “monetize the debt” and print trillions and trillions of pieces of paper without devaluing that paper. This is an historic experiment and it will end horribly — just like Weimar and Zimbabwe.
So, the underlying, real value of RE will likely go nowhere, but the wheelbarrows of paper needed to purchase said real estate will multiply exponentially, roughly correlated to the debasement of our once proud currency.
nvmojo
Sully, I probably should have added that the family involved in the quick dive house exchange short sale extravaganza were a combination of lawyers and doctors.
BanteringBear
johnny posted:
“time to take some more meds BB.
mr. bipolar”
This comment actually had me erupting in laughter. Anybody familiar with Derrick’s posts over the years will see the irony in this. From somebody who has posted under at least 15 different aliases, and who changes positions with the temperature, he’s definitely got experience with this particular subject matter. What ARE the meds for such an affliction, Derrick? Tell us what’s in your medicine cabinet. Then, we’ll understand better your need to present yourself in multiple different lights. My guess is you just didn’t get enough love as a child. Sad, sad, sad.
smarten
Thank you for your apology BB, which is accepted. There are a number of subjects we agree upon, and there are a number we don’t. Neither of us is shy in sharing our views and I very much respect yours [minus the name calling]. I haven’t gone anywhere [unlike Mr. Murray], and I have no intentions of so doing. Unlike others, I’ve put my money where my mouth is and I’ve shared what I’ve done as well as the reasons why [in part to garner your criticism, and in part to hopefully help others in a similar position]. If it ultimately turns out that I made a bad decision, so be it [at least my eyes were open before I did]. However so far I haven’t, and you should cut me some slack.
So have a nice day.
smarten
CL –
I just wanted to comment on how I very much appreciated reading your car purchase story. I think many of us have experienced something[s] very similar.
However sometimes the financing can make up for price [or at least act as that little added incentive if the price isn’t precisely where we’d like it to be]. So when car manufacturers offered 0% financing [OAC of course] because banks essentially weren’t lending, in my mind that represented an incentive that made up for price. And when the government offered the first time homebuyers’ tax credit [even though one doesn’t technically need to be a first time homebuyer], that too was an incentive that made up for price [at least $8K worth of price].
Now if that $8K turns into $15K and it is made retroactive [as is being proposed], then whoever took a chance and became a first time homebuyer, is going to be rewarded.
And now that ALL Incline Village residential real estate assessments are being rolled back to 2002-03 levels and refunds for excess property taxes paid are in fact going to be processed by Washoe County, whoever took a chance and purchased IV residential real estate is going to be rewarded with lower A/V and lower property taxes. And if anyone anticipated this eventuality and included in his/her purchase contract an assignment of his/her seller’s right to such property tax refunds, then he/she is going to be rewarded even more so.
Now if we believe Mr. Econ, very low mortgage rates will remain for at least 4 years and there’s no reason to jump into any purchase that would require a mortgage. But if we don’t share his views [and I personally don’t], obtaining historically low purchase money mortgage financing now during this window of opportunity may actually offset the “uncertainty” [or according to some, the inevitability] of home prices creeping lower. Again, the potential for a “reward” that transcends price.
My point CL – it’s not always just the price. But again, I enjoyed your story and look forward to more.
BanteringBear
Smarten-
You did put your money where you mouth is, and I admire that. You bought a house which you can easily afford, and that’s all that matters. It really is nice, BTW.
We have different takes on the IV market, and it’ll be interesting to see how things play out. I look forward to this winter/spring. Lots of people still burning cash. At some point, they’ll cut bait.
bob c
I had 9 offers — 1 at asking and 8 over
and my low end 95120 home sold first weekend
on market
The strategy was to price it a hair under market
and attract a crowd
100 people came through home saturday….almost
as many sunday
1 guy wrote a nice all cash offer that expired
in 4 hours on sunday as he sensed the interest
my realtor told me not to accept it—i got
even higher offers
and there’s always a few bears around ‘your
realtor stinks–he underpriced your home’
and ‘you should have priced your home way
higher got even more’
This is a high 6 figure home—i am dumbfounded
by what occured
smarten
Hey Bob –
I’d like the name/telephone number of your agent. I have something in zip code 95118 I’d like to sell. If you don’t feel comfortable sharing it on the blog, Guy will give you my e-mail address.
Congratulations; I too am dumbfounded by what you recount! 100 lookyloos on a Saturday?
Sully
smarten; 95118 is where I’m from – what street is it on?
bob c
jerry ferguson broker/agent
universal listing
408-234-8390
408-997-1000
jerry@thinkuniversal.net
he is a retired banker…..his wife and son are
part of his team
a modest , honest person that needs the business
(he did handyman work here too and staged beautifully)—he was offered the buy agent
comission by two of the bidders to have his
son represent them and I said okay…..but he declined for ethical reasons (his son painted
and his wife budget shopped for things I needed
to upgrade before I came to market)
honest, trustworthy and happy to go the extra mile
please call him
johnny
keep talking sh*T about my personal life BB. that way when I see you in public I can give you my dentists business card.
johnny
if you want to talk trash about me, then by all means go ahead.
If you want to bring my personal life and family into it, then don’t EVER let me see in public PUNK
johnny
BTW that is not a threat, merely a warning.
further, I will slap a lawsuit on your ass faster than you can say uncle, for public defamation.
Sully
Derrick,
Why don’t you just post under one moniker, its quite oblivious from your demeanor who you are.
That being said, I agree with your comment regarding personal attacks. But an even better way might be to simply disagree with a person and your reasons for doing so rather then outright ridiculing them. Its also less stressful for everyone.
Just a thought. 🙂
smarten
Thanks Bob –
I will give Jerry a call.
And Sully, I can’t believe you’re in 95118.
The street name is Scossa.
Again sharing personal info which I should think twice about doing with this crowd, some of you may recall that I invest in deeds of trust. Well here was a condo that I made a junior loan against two years ago. As property values went down in this “prime” part of San Jose [not], my borrowers chose to walk away rather than continue paying. So now I’m stuck with a problem – I have workers over there as we speak doing renovation work. Then I must sell or rent it out.
But here’s the interesting part. With pre-payment penalties, delinquent payments, unpaid principal, interest, foreclosure fees, delinquent property taxes, delinquent HOA dues and a senior mortgage in default [that I’m going to have to cure on my former borrowers’ behalf], they are looking at about $250K in indebtedness that they’ve been “relieved” of. And given this property was a rental for them, they’re facing a hell of a tax problem [can you imagine what $250K of additional income would do to your personal tax situation?] in California where there’s state as well as federal income taxes to be paid. I’m filling out the 1099 as we speak.
CommercialLender
Smarten,
Good input on rates and financing terms. My point is, perhaps more specifically, slick financing terms are not THE reason to buy. Certainly they can be an incentive or can throw an otherwise neutral decision over the top, but do watch out the unintended consequences. More specifically my point is that financing should not trump the price paid. Financing always adds to the costs, never takes away from the cost, while a better price paid will always be just that, a better price paid. Dunno how to defend anyone who stretches to buy more simply because of some slick financing terms. Normal, non-toxic mortgage to buy a home with reasonable foreseen ability to make enough money to repay the loan? Fully understood. Buying a home 10x your salary simply because you have 5 yr I/O teaser rates? Heck no. Buying a $40K car when $25K was your budget simply because of a used-car-sales-gimmicky financing package? Sad.
Any of that make sense? I believe your perspective is that your financing terms were accretive to your otherwise positive buying decision. Good. You got a low price, put cash down, plan to stay indefinately, have ability to repay the loan, etc. But my point is a vast many perhaps majority of home buyers in this last cycle bought the 10X home on slick financing terms. Either they suddenly make a ton more income, or they are defaults-in-waiting. Many of those defaults in waiting would have been avoided either because they would otherwise have not bought at all or would have a much more managably sized mortgage. We are seeing this play out now and my further point is we are no where close to being done with this distress in the markets caused by people who over-bought simply because of lending gimmicks.
Final note. I looked at vehicle purchases with 0% rates when they were all the rage. What I found was without exception I would either be paying more than I could otherwise have paid for the car with cash or a 3rd party loan at market rates, or I was being offered this 0% rate on cars I did not want to own. I saw in the end not a single vehicle I would buy using the 0% financing gimmick. (Happy to hear others’ examples to the contrary, though I am already too far afield of real estate.)
Sully
smarten, your place isn’t too far from where I was. I have friends on Luning a couple of blocks away.
smarten
Good input CL –
One little side note.
About 1-1/2 years ago I helped a 21 year old, recent college grad niece buy a new Scion. The factory was offering below market financing and a $400 recent college graduate rebate. The only financing she could qualify for was at 12% plus so I went on the loan with her and I think we got 5.2% [a pretty good auto loan rate back them] with only $500 down. But when it came time for the recent college graduate rebate, Toyota Financial Services balked. They claimed my niece had to qualify for the financing on her own in order to take advantage of the rebate. In other words similar to your story, you only get the rebate if you agree to pay 12% plus on an auto loan when the going rate is 5.2%. What a racket!
And then about 4 months ago Pentagon Federal Credit Union started offering 3.99% auto loans. I couldn’t qualify for a Penfed mortgage, but my niece with only a part time job and no money in the bank qualified for a 3.99% auto loan refinance! Go figure.
BanteringBear
OMG, that’s funny. Classic! Truth hurts, does it Derrick? Can’t take your own medicine?
I’ve seen pictures of you, and to be honest I don’t think you could beat your way out of a wet paper bag. Noodle arms and a beer gut are hardly something I fear. Nice try, though. Thanks for the laugh. 🙂
PS- I’m bigger than you, buddy, and I’ve a feeling your tone would be quite different in person. You’re very lucky I’m not a loose cannon, because you have foolishly posted your picture, place of employment and other pieces of information which somebody could easily use to bring harm to you. You should be more careful in the future. You’re going to mouth off to the wrong person, and your dentist is going to be working overtime.
BanteringBear
While we’re on the subject of legal action, Derrick, let me be quite clear. You have, on more than one occasion, threatened me with physical violence on this blog. It is archived. You’re the last person on this blog who should be threatening ANYONE with a lawsuit. Be smart, Derrick, or you’re going to get yourself into some real trouble.
BanteringBear
Best not to post ANY personal information here, Smarten, for obvious reasons.
DownButNotOut
Noodle arms and beer gut? Now THAT one I could have called right.
BanteringBear
In light of all the euphoric sentiment here (irrational exuberance), it’s time to scratch the surface of the current housing market to show people what’s REALLY going on. More and more stories are hitting the mainstream media about rampant fraud in regards to the $8k tax credit, but even more troubling are the stories of unqualified buyers “qualifying” for homes. It seems that, while they are verifying employment, credit scores, etc., the lenders are still willing to assist in the financial suicide of borrowers, at the expense of FHA and taxpayers, as they ignore healthy DTI ratios, lack of down payment funds, and other crucial factors which determine whether or not a prospective buyer can truly afford a residence.
20 Year Old Buys Home With $183,000 FHA Loan And Just 3.5% Down
“Denise Tejada bought a house last month at the age of 20, thanks in large part to a loan guaranteed by the Federal Housing Authority.
Without question, Tejada’s loan is toxic–to her and to the taxpayers who are backing the loan. Her house cost $155,000. Tejada’s loan was apparently made on a micro-down payment of just 3.5%, the minimum down payment to qualify for an FHA loan. On top of this, however, she got an additional government backed loan to make improvements. Her total loans amount to $183,0000. In short, she was immediately underwater on her new house.
The monthly payments on her debt amount to $1328. Her income is $2470, leaving her with just $285 a week to live on. She’s paying 54% of her income to make the mortgage payments. She earns that income by holding down one full time and two part time jobs.”
http://www.businessinsider.com/20-year-old-buys-home-with-183000-fha-loan-and-just-35-down-2009-10
Housing recovery? BWAHAHAHAHAHAHAHAAAA!!!
CommercialLender
Smarten,
Great comment. Financial gimmicks. “If its too good to be true…..”
****
Derrick/Johnny and BB,
Sorry to state, and not looking to pick written fights – I’m tired of it and the RRB readers are too – but guys, please give it up already! Ask Guy to put you in touch directly, off line, with each other and go duke it out in an alley somewhere. Let the rest of us return to the blog’s mission. You both, yes both, sound as if you go in/out of your meds or the bottle from time to time and have lost much if not all credibility here. I’m not qualified to speak to either of you personally, of course, but reading your posts, you both act as if you need a break, help, or just to move on. Ironically, you both have very good posts from time to time, but seriously, enough already guys….
BanteringBear
I’m already over it, CommercialLender. Sounds like you need to move on, too.
bob c
too funny
Reno Ignoramus
Many months ago, maybe even a year ago (I can’t recall precisely), there was a long discussion here on the RRB about how FHA is the new subprime. Like everything else in this market implosion, though, it will take about 3 years before that reality is acknowledged.
Ramona
I have a niece who has a 600 FICO who just bought a $175,000 REO house with an FHA 3.5% down loan ($6125 down), at 5.125% interest, and the $8000 credit.
This all sounds great, and it would be, except for the fact that she can’t afford the house. When I talked to her about being able to make the payment, and all the OTHER expenses of home ownership, her response was that all she was putting into was $6,000, and if she lost that, oh well.
I give it less than a year before the default is recorded.
This sort of thing is not what is going to lead to a real estate market recovery, IMHO.
Salka
3raser Hey there just wanted to give you a quick heads up. The text in your article seem to be running off the screen in Safari. I’m not sure if this is a formatting issue or something to do with internet browser compatibility but I figured I’d pos…
Hey there just wanted to give you a quick heads up. The text in your article seem to be running off the screen in Safari. I’m not sure if this is a formatting issue or something to do with internet browser compatibility but I figured I’d post to let …