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

Get Ready for Change!!!

“It will come” says our new President Barack Obama.

The biggest change since the last time I updated you has been the number of homes for sale and the total months of inventory of available homes.

In January 2008 we had 19 to 18 months at the end of December 2008, there is presently 10 to 9 months in the Reno - Sparks real estate market respectively.

What does this mean?
We are still in a buyers market. It also could be telling us that the bottom is getting closer. It better be getting closer as prices are lower than they have been in many neighborhoods since 2001.

Don’t believe all of the bad news about Nevada being the state leading the nation in foreclosures per households as the numbers were recently found to have been in error. The database was counting the total number of notices filed and it was learned that many of the homes had multiple filings. So it isn’t as bad as it sounds.

Is it bad?
If you are a property owner now, then yes it is bad. If you have a need or a desire to buy your first home or wanting to upgrade your home then this is great news.

• Interest rates are as low as they have been in years.
• The number of great properties to choose from is numerous.
• Also, don’t let the rumors that there isn’t money to lend get you down.
• The banks no longer have Non-or Limited Qualifying loans, but there are exceptions to this rule.

If you have ever wanted to buy additional properties now is the time. There are investor loans readily available as long as you don’t already have 4 or more unpaid real estate loans.

I still don’t have a crystal ball so I can’t tell you what is going to happen with the national economy. When it does show signs that will improve the consumer confidence, it might be too late to catch the bottom.

What's next?
Right now we are about to see another wave of California buyers who will be looking to buy in other states. Nevada has a Governor who is trying not to raise taxes and California’s Governor is hoping to pass some of the largest tax increases in history.

Once our builders start building again, construction workers who were laid off will be headed back here again when building does start up again.

I don’t know if this will happen in 2009 or 2010, but when it happens things will start hopping in a hurry.

Meanwhile, this is the first time in years that with the combination of low interest rates and low housing prices where an investor can do a 20%-25% down payment and have a positive cash flow without depending on market appreciation and after tax benefits.

There is so much I would like to talk to you about. There is so much that I can’t explain in a blog posting. I may have said something that you don’t agree with or understand. Please don’t get mad or brush this off. I can explain and discuss these issues with you. Just call me at 775-850-7033 or email me at sold@RickLund.com.

If you know of anyone who should be buying but they don’t know the process, please have them call me or just give me their contact information and I will contact them and help them out.

Many homes are being purchased with just 3.5% cash down payment and we are able to get the seller’s to pay the buyer’s closing costs. The buyer’s payments are some times lower than the rent for similar homes.

Remember “Nothing Ventured, Nothing Gained.” One thing I’ve learned from my hunting and fishing experiences, if you don’t go out and try, you are guaranteed to get nothing. My wife will say, "But think of all the gas you would have saved." When we look at homes I buy the gas, you don’t pay the commission so give me a call.

And one more thing: If you have a need to sell I can give you the best service available. I am an expert in negotiating short sales and saving you from foreclosure. Call me for details. My general answer for people thinking of selling is: If you don’t have to sell, then please don’t, as the prices are at record lows. If finances or relocation forces your need to sell, then give me a call and I’ll do the best job available in this market.


Rick Lund
www.ricklund.com
www.ferrari-lund.com