Two days ago I closed on a house with an interesting history of price reductions. This was a nicely upgraded, 2600+ square foot home in Somersett on the Canyon Nine, originally listed on October 11, 2005 for $835K (way overpriced, I thought at the time). Every couple of months, the price would come down a bit, but never enough to be a good value compared to the many others available. So as a buyer’s agent, I never showed it, as there were better options to see.
By June 29, 2006, the price was down to $720K. The sellers switched agents and slashed the price to $650K. At least now it was in the ballpark. By late July, it sank to $619K. That’s when it caught my client’s eye. Now it was the best value in the neighborhood, so he bought it. For $590K.
Just one story… but a collection of these may explain downward market movement.
gotlots
Can you tell us when that house was last sold, and for what price?
gotlots
Look at MLS # 60015624. 1675 Ashland Bluff Way. In, where else? Somersett. APN 234-261-14.
This has all the flipper droppings. Stainless, granite, and, of course, the ubiquitious flipper “never been lived in.”
This house sold on November 3, 2005 from the builder to the present owner for $504, 662.
Currently listed at $495,000.
Calculate what the costs of sale will be to the current owners when they finally find the next fool, plus the cost of carrying this “you can never lose money in Reno real estate” upside downer for the last 10 months, and…..OUCH.
I am telling you, folks, if you insist in buying into this falling market now be VERY, VERY careful.
If you want to lack in declining value, there has never been a better time to buy.
MovingtoReno
I read your Weblog regularly and find it to be very informative. However, your website says the California Influx is still strong, I beleive you are incorrect. From what I understand the Real Estate Market in S.F.C. and Sacto are worse than Reno. How will the Californa influx still be strong if the Californians cannot sell their real estate?
Also, Gotlots where can I find which houses in Reno are either in or going into foreclosure.
Diane Cohn
MovingtoReno: You are right. I’ve been so busy blogging and running my business that I’ve neglected my website and need to update it. That’s this weekend’s project.
Gotlots: They bought it from the developer in late 2003 for $470K, so they still did okay.
Reno Ignoramus
Hey Gotlots, another good find in Somersett. This one will be a good one to track and see how much down from $495,000 they have to go to sell it.
Let’s just hope for the sake of these debtowners that they didn’t buy this with a nothing down, interest only, neg-am voodoo loan. Let’s just hope that the current unpaid balance on their loan is not now $520,000.
As a seller, it is a real bummer when you have to bring a big check to the closing. And you are right, these people appeared to have locked in a fair amount of declining value.
Paul
A poster comments:
“How will the Californa influx still be strong if the Californians cannot sell their real estate?”
Actually, we can sell it, it will take longer and won’t bring as much as we hoped for, but the main impediment to moving to Reno is this: Your area is STILL way over-priced; big numbers for small tract homes, small rooms, jammed together on tiny lots. Why pay an inflated price to replicate the San Fernando Valley 500 miles north? Houses in your area on 1/2 acre and better lots, large rooms, 3,800 to 4,200 sq ft in size, are $150,000 more than they should be, for no logical reason we can see except that they are “in Reno.”
Sign us,
Waiting Patiently
Diane Cohn
MovingtoReno, though the inflow from California has slowed to a dribble for now, I do believe it is temporary. The turndown in California is part of the usual cycle over there as far as I can see. When their market perks up again, so will ours as baby boomers cash out to relocate for retirement or spend their inheritances on a far-cheaper-than-Tahoe second home here. Not everyone will invest here. But the recreational opportunities of the region are a big draw for many… So long term, I think the California influx will continue.
Wazzup
Diane,
I just took a look at the listing on Ashland Bluff Way at $495k. Yesterday, three listings on Quilberry showed up on the mls at 354k, 343K and 336k. What going on in Sierra Canyon? Any comments for a future buyer, ~2yrs? I’m scared.
gotlots
Wazz: I don’t want to speak for Diane. But look in the MLS under Somersett. About the first 30 listings there are for Sierra Canyon. It is flipper city.Search County records and see all the non resident owners. Lots of people left holding the bag. People already selling at a loss. Lots of people are underwater right now, and are foolishly not lowering their prices to sell. They think this market is going to turn around as we head into winter? It is going to be very ugly in Sierra Canyon.
There is no problem with being scared.In fact, it is a very healthy attitude to have now.
Wazzup
gotlots, Thanks for the response. We’ve been watching the Sierra Canyon since they opened, they wouldn’t even talk to me then, too far out from buying. I see they still own those homes on Quilberry (PNII)??? They don’t show as inventory homes. Re:the flippers, we were told we needed to occupy the residence. Do you have any idea of what percentage are resident owners? I guess our decision to sit on the sidelines is warranted. Wazz…
Diane Cohn
Wazzup, you asked about what’s happening on Quilberry? Apparently Pulte finally broke down and joined the MLS… these are three brand new homes offered directly by the builder. And with 4% commission to the buyer broker… How nice!