Reno/Sparks Real Estate Market Update-1/14/2011

Welcome to the Renown Real Estate Video Library. Managing Broker and Realtor Ricky Beach presents this video of Reno and Sparks real estate market conditions, mortgage rates, local happenings, and general musings for the Reno and Sparks, NV area. Check back each week to see what’s new for home sales in Reno and Sparks, NV. Click for more Reno Real Estate Videos.

Sorry folks no video for today but all the information will be provided through text.

30 year mortgage rates fell again from the week. Freddie Mac reports that a 30 year loan with .8 of a point is rated at 4.71%. This is down from 4.77% last week and hits a four week low. We view this as a good week but a recent survey, from bankrate.com, of a panel of mortgage experts shows that most agree that rates won’t fall in the immediate futre. We’ll see if that’s true or not.

The Reno/Sparks market saw 99 sales from January 7th to January 13th. The average list price for these sales was $197,165 and the average sold price was $188,244 giving a sale to list price ratio of 95%, which has been around the average for the preceding year. Of those 99 sales 45% were bank or corporate owned, 35% were short sales, and 20% were fair market owner resale. 80% of sales being distressed properties is pretty high for the area but doesn’t seem too alarming.

For the Nevada foreclosure market, in December notice of default filings were down 2.3% which may be attributed to lenders freezing foreclosure due to the holidays. Foreclosure sales were up 24.3% and cancellations rose 39.8%.

One bright spot of the foreclosure market is that banks may be coming around to partial rehabs on their assets. Field Asset Services tracked 17,252 properties and found that the average days on market varied greatly for trash out only REOs and rehabbed REOs. The trash out only REOs averaged 22.8 days on the market while the rehabbed ones average only 69.8 days. While there are many other factors in the sale of REO properties I believe poor condition has been the biggest hold up in the market. Our area is first time home buyer driven with most of these buyers not having enough funds, after closing costs, to cosmetically repair a property. New carpet, paint, and updated fixtures can go a long with with appeasing buyers and most properties will keep or gain more than 100% return on those repairs. Think multiple offer situations.

Check back next week for more updates and we should have our video service back up and running.

Posted in Market Update.

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