Wednesday, June 22, 2011

May 2011 Market Condition Report

The May 2011 Market Condition Report indicate both SFR and Condo supply are very constant in this period and showing a slight positive tendency. This illustrates that once properties are moved off the market either as a pending sale or a failure, these properties are replaced by new supply.

Notice in the graph to the right the pronounced nature of the slope of the trend line in the mid part of 2011. Beginning in May 2009, the market made an attempt to stabilize the price schedule.

However, the level of demand relative to supply appears to be insufficient to maintain the current price level or to cause an increase, result in a slumping curve in the graph. There is not way to determine how long this situation will continue. Even though there has been some degree of price stabilization in the condo price schedule, this may be short term.

OVERVIEW: Both SFR and Condo supplyare very constant in the current range with slight positive propensity. This means that as properties are moved off the market by either becoming a sale pending or a failure, those properties are being replaced by new supply. At the same time, properties in escrow continue to build in a slow methodical way. This implies that the level of closed demand will be increasing in the near term in small steps (no big moves). Prices for SFR continue very weak and in decline; Condo has steadied in the current range.


WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): The absorption rate has stabilized with a slight negative propensity for both types. Tightening absorption rates signal a tighter market. However, current changes in the absorption rate are small and not significant.


MARKET SPEED INDEX: Market speed (the conversion of listings to closings) has remained relatively constant for the last several months. The pace of the Reno area market is slow and steady with no big variations from month to month.


PRICES: SFR prices continue to decline while Condo has stabilized in the short run. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph). Note in the price graph that the tail end of the trend lines shows a definite decline. Notice also that the above mentioned erratic nature of the price curve is more is less pronounced and more predictable in the latter time periods.


[Permission to distribute granted by First Centennial.]


For more information on the real estate market in the Reno-Sparks area of Nevada, please contact us.

Rick Lund

Wednesday, May 25, 2011

April 2011 Market Condition Report

The Market Conditions Report for April 2011 shows that both SFR and Condo supply are very constant in the current range like they were in March 2011. This would indicate that as properties are moved off the market either as a sale pending or a failure, these properties are being replaced by new supply.

An encouraging note is that properties in escrow continue to build, implying that the level of closed demand will be increasing in the near term. However, prices continue to be very weak for both SFR and Condo properties and these declines are somewhat more pronounced than other areas surveyed.


OVERVIEW: Both SFR and Condo supply are very constant in the current range, as they were the month before. This means that as properties are moved off the market by either becoming a sale pending or a failure, those properties are being replaced by new supply. At the same time, properties in escrow continue to build. This implies that the level of closed demand will be increasing in the near term. Prices continue very weak for both types. These declines are somewhat more pronounced than other areas surveyed.


PERCENT SELLING: Very constant in the current range.


WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): The absorption rate is on the decline indicating that the market is tightening slightly—more so for SFR than Condo. This tightening effect needs to continue for sustained time in order to affect the current trajectory of prices.


MARKET SPEED INDEX: The market is moving slowly but the pace is increasing in small steps from month to month. Expect this continue. This increase will be difficult to discern at the street level in the short run.


PRICES: SFR and Condo price schedules continue to weaken but the pace of decline has increased. SFR has become more pronounced in the short run. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph). Note in the price graph that the tail end of the trend.


[Permission to distribute granted by First Centennial.]


Read the full April Market Condition Report.


For more information on real estate in the Reno-Spark area of Nevada, contact us.


Rick Lund

www.ricklund.com

www.ferrari-lund.com

Friday, April 15, 2011

March 2011 Market Condition Report

The March Market Condition Report for the Reno-Sparks area shows a slow increase in the real estate market in Reno-Sparks NV. The following overview is available in this report:

OVERVIEW: Both SFR and Condo supply are very constant. This means that as properties are moved off the market by either becoming a sale pending or a failure, those properties are being replaced by new supply. This implies that whatever price trend is currently in effect is likely to continue. Closed SFR demand increased significantly over last month while Condo demand was relatively unchanged. Properties in escrow are on the increase at a slow pace. Median price for both types is declining at a quicker pace. Prices are very weak.



PERCENT SELLING: Increasing slowly—gained 5 points over last month. This is a reflection of an increase in closings and a decline in the rate of failure.


WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): Absorption Rate is declining for SFR and steady for Condo. A declining rate signals a tightening market in terms of supply and demand. In order to affect prices, this tightening would need to continue over a prolonged period before prices would react.


MARKET SPEED INDEX: The market is moving slowly but speed is increasing in small steps from month to month. Expect the pace of the market to increase slowly. This increase will be difficult to discern at the street level in the short run.


PRICES: SFR and Condo price schedules continue to weaken but the pace of decline has increased. Condo has become more pronounced in the short run. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph).


Read the full March 2011 MCR report.


[Permission to distribute granted by First Centennial.]


For more information on real estate in the Reno-Spark area of Nevada, contact us.


Rick Lund

www.ricklund.com

www.ferrari-lund.com


Tuesday, April 05, 2011

February 2011 Market Condition Report

The February 2011 Market Condition Report for the Reno-Spark, NV real estate market indicates that the market is slowing slightly. To summarize:

OVERVIEW: Both demand and supply very constant. This is a usual pattern at this time of the year. Properties in escrow are on the increase which signals an increase in closings in the next 30-45 days. SFR median price continues to weaken while Condo price, which was holding is now beginning to slip.


PERCENT SELLING: Increasing slowly in the short run. As a rule of thumb, a typical non-REOseller has about a 40-60% chance of closing in today’s market. REO has about a 70-80% chance of closing.


WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): Absorption Rate is steady and hovering in the current range (give or take 3-4 weeks). No clear trend has emerged other than slightly up and down from month to month. A steady absorption rate signals that underlying demand/supply is not changing. This, in turn means that no big shifts in price are in the offing.


MARKET SPEED INDEX: The market is slowing slightly. Expect the pace of the market to increase slowly as Spring approaches. However, in the near term listings are converting to closings in a slow and sluggish manner.


PRICES: SFR and Condo price schedules continue to weaken, condo has become more pronounced in the short run. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph). Lately, however, there is more of a tendency to decline than rise. Average Price for three counties can be reviewed in the table below. Peak values (SFR) and current values are highlighted.



Read the full Market Condition Report for the Reno-Sparks real estate market.


[Permission to distribute granted by First Centennial.]

Rick Lund

Thursday, March 31, 2011

January 2011 Market Condition Report

The January 2011 Market Condition Report for the Reno-Sparks NV real estate market gives the following indications:

OVERVIEW: The pace of the market has slowed from last month. Supply has increased slightly while demand has backed off marginally. This is a usual pattern at this time of the year. Properties in escrow are on the increase which signals an increase in closings in the next 30-45 days. SFR median price continues to weaken significantly while Condo price is holding at current levels.


PERCENT SELLING: Increasing slowly in the short ru

n. As a rule of thumb, a typical non-REOseller has about a 40-60% chance of closing in today’s market. REO has about a 70-80% chance of closing.


WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): Absorption Rate is steady and hovering in the current range (give or take 3-4 weeks). No clear trend has emerged other than slightly up and down from month to month.


MARKET SPEED INDEX: The market is slowing slightly as is usual. Expect the pace of the market to increase slowly as Spring approaches.


PRICES: SFR and Condo price schedules continue to weaken, but SFR is much more pronounced. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph). Lately, however, there is more of a tendency to decline than rise. Average Price by city and year can be reviewed in the table below. Note the trend that estimates the dollar value of the declines per year.



Read the full Market Condition Report for the Reno-Sparks Nevada real estate area.

[Permission to distribute given by First Centennial.]

Rick Lund

Tuesday, March 08, 2011

Sale of Pfizer Inc distribution center to Brightpoint in Reno

A significant transaction -- more so than the $11.5 million sale amount -- brings Brightpoint, a third-party logistics provider for wireless communications companies, back to Reno. More than that, it brings 79 new jobs to Northern Nevada.

The sale of this 263,924-square-foot building makes this the largest transaction in two years in the Reno-Sparks area, and the economic impact is expected to generate $9.58 million in the region during the first year alone.

With one is every 131 homes in Reno-sparks being a foreclosure, how the economy performs is what will turn this market around according to the Center for Regional Studies at the University of Nevada, Reno.

While the sale of the Pfizer facility will not turn the economy around on its own; this is an important step in helping to positively affect the local economy.

Monday, August 17, 2009

Dear Friends and Clients,

Recent economic events have left a lot of people with many questions about the state of the Reno/Sparks real estate market. I hope this brief update on the real estate market is useful to you.

First, however, I thought I should let you know that I have sold Ferrari-Lund Real Estate to my partners, Vince Rossi and David Graham. About three years ago, before the market tanked, Nancy and I (after much thought) began the process of selling the business we started back in 1988. I have been selling real estate for over 30 years and both selling and running the company for the last 20. It was time to simplify my life and go back to the thing I loved enough to never give up—just selling real estate.

I opened Ferrari-Lund hoping to build a company where real estate transactions were handled how I thought they should be. It has surpassed any of my dreams and expectations. I have loved and taken care of it for years. We started with six agents and two brokers. As of today, the company has 150 agents and 4 brokers.

Selling Ferrari-Lund allows me to concentrate full time on selling real estate. I have retained a minority share in the company until the buyout is complete, but Vince and David are now responsible for the day-to-day management of the company. This gives me more time to focus on helping my friends and clients. I have been blessed to find a career at an early age that I loved, and I still love it. I don’t see giving up selling real estate in any foreseeable future.

Despite the tumultuous economy, real estate is still a great investment. The market upheaval has left people with a lot of questions. Here are some great questions I am frequently asked. I hope these answers are helpful to you.

What should I do if I am upside down in my house?
Call me. I can explain your options. Some options include waiting it out, renting rather than selling, approaching lenders for loan modifications, negotiating a short sale, or letting the bank foreclose. There is also bankruptcy. I will refer you to an attorney or accountant if they are needed.

Is it a good time for me to buy?
Yes! There are so many good reasons to buy. Interest rates are low, prices haven’t been this low since October 2001, and there are special tax credits for first time buyers.

What is going to happen to the interest rates?
I wish I had a crystal ball. I recently refinanced one of my properties and did a 15 year loan at 4.375%. My previous loan had a 5.75% rate. I think there is a good chance that rates will rise in the future and that is why I refinanced.

What is the difference between a short sale and a foreclosure?
In a short sale you sell your home for less than you owe, and negotiate with your bank to accept the lesser amount. In a foreclosure, the bank forces the sale of your home at auction to recover what you owe the bank. If your home sells for less than the amount you owe the bank, it can file a court action against you seeking a judgment foe the remaining amount owed, known as a “deficiency judgment.” There is no difference between a short sale and a foreclosure as far as your credit is concerned, at least right now. This could change in the future. If a short sale is handled properly, however, it takes away the banks’ right to seek a deficiency judgment against you.

Are new loans harder to get now?
Yes, if you are looking for the old 100% loans with no down payment. Unless you are a veteran, down payments are required. On the other hand, if you have the 3.5% cash down payment (or a relative who will gift it to you) and a FICO score of 620 or higher loans are still easy to obtain. Further, I have negotiated many offers with the seller’s paying all of the buyer’s closing costs.

Is it better for me to rent for the time being?
It depends on your situation. We are back to the old rules of real estate. With a normal market appreciation of 2-3% annually, you must plan on staying in your property for 3-5 years just to break even. So if you are expecting a job transfer in the near future, then renting may be your best move.

On the other hand, if you have no plans to leave this area any time soon and your housing needs are not going to change much in the coming years, then, of course you should buy and not rent.

Market inventories are shrinking again. The less expensive end of the market will soon see prices going up again. It will start with the sellers no longer agreeing to pay buyer’s fees and then you will see prices begin to edge upwards.

I’m sorry I can’t say this about our exclusive home market. In homes that are $500,000. and up, there may still be some painful times ahead, and unless you can get a great buy, renting might be a better option.

How is the rental market?
At Ferrari-Lund Real Estate we have really expanded our property management services. We are successfully renting the homes, but owners need to be willing to make repairs or be prepared to possibly lower the rent. It is a renter’s market. Tenants have plenty of homes to choose from.

There are so many more things we could talk about, so please contact me. Every situation is different. If you have a good job and good credit – this may be your time.

I can be reached at my office 775-850-7033 or on my cell 775-742-6537;
email is great too: sold@ricklund.com

I would love to speak with you and answer any questions you may have.

Sincerely,
Rick Lund