Below please find the Washoe County Notices of Default (NODs), Notices of Sale (NOSs), Trustees Deed Filings (TDs) and New SFR REO Listings statistics for March 2013 provided to us by our friends at Ticor Title of Nevada, Inc.
What an about face from February’s numbers! NODs, NOSs and TDs are all up markedly for March, with NODs hitting their highest level since AB284 went into effect; and NOSs up 69 percent. It appears the banks are figuring out how the requirements of AB284 and how to be compliant.
Here are the numbers (month-over-month):
- Notices of Default – up 22%
- Notices of Sale – up 69%
- Trustees Deed Filings – up 79%
- New REO listings – down 29%
Click on the chart below to enlarge…
Ticor’s commentary accompanying the statistics…
Notice of Defaults (NOD) increased and Notice of Sales (NOS) significantly increased in March. Trustees Deeds bumped up a little & REO Listings are showing a consistent decline. The increases of the NOD’s and NOS’s are partly because of the banks feeling more comfortable with AB284 and the proposed changes to AB284 (aka AB300) that are getting addressed at the current Legislative Session. As mentioned in prior comments, inventory in Nevada is down considerably and the real estate community is concerned about the lack of inventory available in the 2nd and 3rd Quarter. According to some numbers provided, new listings on MLS have increased in the non-conditioned sales area and these are properties that are not Short Sale or REO, but regular or equity properties. Short Sale and REO new listings decreased in March compared to February. There are hundreds of qualified buyers ready to purchase but are getting beat out by cash buyers and investors. This trend is starting to look very similar to the BUBBLE we experienced in the 2004-2006 timeframe. It is hoped that Homeowners who want to sell take advantage of the market conditions and Banks who are holding assets will release a healthy amount of inventory, at an affordable price, to assist in our backlog of buyers waiting.
related post: Washoe County foreclosure-related recordings – February 2013
MikeZ
This should help sellers plant their feet back on the ground. Many Reno SFH asking prices are up in the clouds, a good 20% above reality.
Twister
Sellers are still in full comand of this market and look to be for several more months. 2011 was the golden opportunity for buyers that wont be seen again. However could see a significant dip a year from now but not before prices rise some more.
MikeZ
It sure looks like the market’s already turned, Twister. Sellers think they’re in command, but 6 more months of the current trend, if it continues, will change that.
Twister
At some point Mike Z, the market will turn but the increase in NODs over the last several months has yet to change inventory levels. The news about the sharp percentage increases in NODs is scewed because its comparing to the months when NODs were choked off initially after AB284. Inventory levels are so low right now that it would take a sharp increase in inventory to push us into a market that would put downward pressure on prices. So sellers today are definately in command.
MikeZ
“At some point?” Maybe we’re looking at different data? The last 3 months show degeneration in both the key leading and current market indicators. Look at the demand chart in the FCT report since December, for example.
Twister
I dont see anything that would push prices down in the near future. In fact I see the uptrend in the median continuing on into the summer.
Sully
This market can continue it’s rise for another 2 – 21/2 years. Even if foreclosures suddenly resume the pre-AB 284 rate. As long as interest rates remain low people will use that as an excuse to buy now.
Real estate runs in cycles. One is the 78 year cycle – 52 up and 26 down. Japan is in such a cycle now – meaning it will bottom in 2017. Then there is the 18 year cycle:
http://www.nuwireinvestor.com/articles/the-real-estate-cycle-where-are-we-now-59319.aspx
The current rally is based on low interest rates and foreclosure hampering (low inventory). Investors flocking to buy, with cash, added to the frenzy in the first part of 2012. However, investor interest seems to be cooling a bit. This could be because of trouble finding renters.
Median prices here are dirt cheap to Bay Area residents, a good 1/3 of the price of a median house in the Bay Area. However, people unfamiliar with the area are buying because of cheap prices not the area (location,location,location). This will prove (eventually) to be a mistake.
I’ve looked at three houses in the last 3 months – all in prime areas, with a view of some sort. In two of the cases, I was amazed that they passed inspection in the first place. The third house had to have been designed by a first year Architect, it was long and narrow with all the bedrooms on one side of the house and rised floors where ever plumbing was needed. Apparently the ground was too rocky to dig trenches for drain lines. 🙂
… and yeah, prices are in the clouds.
Washoe County foreclosure-related recordings – April 2013 | Reno Real Estate Blog
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