RSAR came out with the June real estate market stats for Reno/Sparks.
Below is an overview of the major points with the full report available by clicking on the picture to the right.
- The median sales price rose 1.6% to $222,000. That’s up 30.6% from June 2012
- Solds ended at 503 which was down 5.5% from May 2013 and down 2.5% from June 2012
- There were 717 new listings. Down 5.8% from the previous month and up 7.2% from June 2012. 76% of these were regular sales which are good for everyone.
- Month’s supply of inventory went up to 3.9 months. Still in a strong seller’s market.
I hesitated in writing this post because I’m quoted in the RGJ article (read through links below) and didn’t want to toot my own horn. I though better of it because this is the heart of what’s happening in the Reno/Sparks Real Estate market.
Simple Math: A + B = C
Rising home prices hit with low appraisals creates a cash market. Either the whole purchase is cash or the buyer may have to pony up cash for the difference between the appraisal and contract value.
Sellers know it’s happening and buyers need to be prepared. If the buyer can’t cover the difference, in cash, then the seller may put it back on the market to find someone who can.
If you’re looking to cash in on a good seller’s market or are a buyer needing helping navigating contact Broker Kristopher Kent at (775) 393-9560 or Kristopher.Kent@Renown®Res.com
The article stats that the typical sale to list price ratio is between 92%-98%. The top markets are now seeing homes selling above that threshold and even above list. Reno came in at #4 in the country for markets with high sale to list price ratios.
So how high is the ratio? We’ll use our more recent full months of stats, April 2013.
- Homes under $500,000 sold for 99.83% of the list price.
- Homes under $250,000 sold for 100.59% of the list price.
- Homes under $150,000 sold for 101.09% of the list price.
- Homes under $100,000 sold for 102.08% of the list price.
What this data means is buyers need to have their game faces on when putting in an offer while sellers can expect multiple offers if their home is priced right.
For more information on selling or buying a home in Reno or Sparks contact Broker Kristopher Kent at (775) 393-9560 or Kristopher.Kent@Renown®Res.com
Heart of the Old Southwest for a cute little home around 1,300 sqft. No big deal until I looked at the price per sqft… $306.92 per sqft. There’s only been 4 homes in the past 4 years to sell over $300 per sqft (current property is on the list of 5 to the right).
You can view all the listings here. Click Here to View Listings
What do you think? Is $300+ per sqft. worth it for a non-luxury home in the Old Southwest?
The McLean “LoanFirst Program” will give a buyer a full pre-approval prior to putting in an offer. This pre-approval differs from a traditional pre-approval because they will put in the full loan application, process the credit and income verification, and fully underwrite the loan (subject to a ratified contract, clear title report, and appraisal) before you even put an offer in.
Though this may not help with the lengthy short sales it would most certainly improve a buyer’s position in front of a regular seller or asset manager and shorten the closing time that is traditionally required to go from contract to close.
Of course, there would be additional updated document requests but the major clog in the loan process would already be cleared.
Thanks to McLean Mortgage for logically thinking through how the purchase of real estate should go instead of sticking with industry norms.
Ticor Title Company sent out the updated foreclosure stats for March 2013.
The full stats can be viewed by clicking the picture to the right.
- Notice of Defaults hit their highest point since September 2011 (start of AB 284)
- Notice of Sales (final recording before foreclosure) at their highest since February 2012
- Trustee’s Deeds were at their highest since July 2012 (small change)
- New REO listing have hit their lowest point (24) since Ticor began collecting the data
The increase of NODs and NOSs is a good sign for buyers though it’s going to take at least 9 months to get NODs into Trustee Deeds. Sellers may only have a limited time to name their price when selling their homes.
If rates go up a refi may not work. You should look into a conventional with 5% down.
It’s still about 70/30 that the market won’t depreciate in the near future.
Hopefully, better than the original HAMP.
Not good if prices are doing the same.
For those of you that haven’t been following… AB284 made it tougher for a lien holder to foreclose due to the vague language of “personal knowledge” and other verbiage. Oh yeah… it’s also a felony if you mess it up.
The Assembly Judiciary Committee will be convening tomorrow, 3/27, at 8:00 am in order to review the provisions. (Vote yes on “business records”)
The bill text can be read by clicking on the picture to the right and you can watch the committee by clicking on the link below.
Of course, there will be future posts if this bill ends up going through and relieving the lack of inventory burden carried in today’s Reno/Sparks real estate market.
If you’ve been looking for houses the past 6-8 months you’ve noticed there isn’t much inventory and prices are going up. Well, Fannie Mae is onto this and has been trying to prop up the market even more.
Go ahead and search the Fannie Mae listings. Search Here
Now run search on closed and even active comparables around it.
Anything look funny?
Yeah, Fannie Mae is adding anywhere from 20-30% of market value to their listings. While the market is going up there is only a slight chance most of these will appraise.
The Why And The How
- Fannie Mae holds the majority of serviced and delinquent homes (GSEs and HUD own or insure 90% of all loans). By holding most of the active and shadow inventory Fannie believes they can control the market. To an extent this is true.
- A slow leak of homes while jacking up prices will take less of a hit on their books.
- Nearly all of Fannie Mae properties may be purchased with the HomePath Mortgage. HomePath mortages don’t require an appraisal. The down is less than FHA and there isn’t any mortgage insurance. So a buyer sees an overpriced house that won’t appraise but knows they can get it by using a HomePath mortgage.
Buyers not using HomePath aren’t going to be too happy with these price increases but can you really blame Fannie Mae? They’re leveraging market conditions and inventory to their advantage. Would we berate a normal seller doing this or is it different because tax payer money is involved?
What do you think?
If you have questions about buying or selling a home in Reno or Sparks contact Broker Kristopher Kent at (775) 393-9560 or Kristopher.Kent@Renown®Res.com
On April 1st, 2013 FHA will be raising their mortgage insurance premium (MIP) by .1% and requiring it to be paid for the full term of the loan.
View the press release here.
An FHA loan created before April 1st will only require mortgage insurance until the loan is 78% of the original balance (around 7 years of payment).
Let’s see the difference between buying before and after the deadline.
$200,000 Home Before The Deadline
Monthly mortgage insurance: $201.04
7 years of mortgage insurance: ($201.04 x 12) x 7 years (average time)=? $16,887.36
$200,000 Home After The Deadline
Monthly mortgage insurance: $201.04 +.1% premium= $221.14 per month
Only $20 more per month but now let’s add in the full 30 years of payment.
30 years of mortgage insurance: (221.14 x 12) + 30 year payoff= $79,610.40
After deadline mortgage insurance $79,610.40 – Prior to deadline mortgage insurance $16,887.36 = $62,723.04 loss
So what can you do?
Either get your FHA case # prior to April 1st or look at using a 5% down conventional loan that begins with a lower mortgage insurance payment and will fall off after being paid down to 80%.
Have questions or want more information on buying or selling in Reno and Sparks contact Broker Kristopher Kent at (775) 393-9560 or Kristopher.Kent@Renown®Res.com