Many recent comments on my local Reno Realty blog have been made regarding how the reported median home prices don't tell the whole story when it comes to home values in Reno. For this reason many of our readers have expressed a desire to see $/sq.ft. sold price data - the idea being that the $/sq.ft. data might be a truer indicator of where home values are today compared to historical highs. With this in mind I set out to uncover this information... click here to see results.
Washoe County re-sales increased for the third consecutive month (up 20% over March); however April new homes sales decreased in April over March (down 11%). Summing re-sales and new home sales results in a nearly 9% increase in Washoe County recorded home sale recordings for April over March. 605 recordings vs. 556 recordings.
Unfortunately this sales activity is negated by the increasing foreclosure activity. As has been the case for the last twelve months Notices of Default (NODs) continue to skyrocket. April saw another 457 NODs recorded in Washoe County. This number is truly staggering. 457 NODs is more than 15 a day (or more than 20 per day, excluding weekends). And this trend does not look to subside anytime soon. We're already at 58% of 2007's total (and it's only April). At this rate 2008's NODs will outnumber 2007's by July.
See all the numbers here.
While writing my last post it occurred to me that also tracking closings per type of “special condition of sale” would be an interesting exercise.
As of today our MLS is showing 4,305 listings [Reno-Sparks residential]. Breaking out these by the new “Special Condition of Sale” field yields:
| "Special Condition of Sale" | # | % |
| Bank Owned | 409 | 9.5 |
| Relocation | 20 | 0.5 |
| Short Sale | 503 | 11.7 |
| Subject to Court Approval | 24 | 0.6 |
| Other | 273 | 6.3 |
| None | 2,869 | 66.6 |
| Not yet specified | 207 | 4.8 |
| total | 4,305 | 100.0 |
Just as I plan to do with the Pendings tracked in my last post, I will monitor these listings for 30, 60 and 90 days and report on how many have closed. My goal is to get a handle on the types of sales that have a higher propensity of closing.
Having just experienced yet another “pending” short sale fall out of escrow, I am wondering if these “transactions in limbo” can really be considered as Pending. With no meaningful time lines given by the lenders who are supposed either approve or not approve a pending offer on a "short sale"; days, weeks and even months pass before the prospective buyers finally give up out of frustration and move on to another property.
Almost every agent (and their clients) who has dealt with a short sale transaction has experienced the same frustrations. Even the approval time frames set by the lenders themselves become a moving target. With extension after extension after extension demanded by the banks during the course of the "approval" process, it is no wonder Buyers lose patience and look elsewhere for a property.
In an attempt to determine just how bad this faux Pending status is I’m going to track all the current Pendings (as of today) and see where they are 30 days from now. [There used to be a time, not too long ago, when a 30-day close was the norm. Not so, today.]
As of this afternoon our MLS shows 787 properties [residential properties in Reno Sparks] in various states of “Pending” status. These breakdown as follows:
| "Pending" Status | # | % |
| Active/Pending-Call | 97 | 12.5 |
| Active/Pending-Loan | 307 | 39.5 |
| Active/Pending-House | 17 | 2.2 |
| Active/Pending-Short Sale | 199 | 25.6 |
| Pending - No Show | 158 | 20.0 |
| total | 787 | 99.8 |
I have recorded the MLS numbers for all 787 properties. I will revisit these properties in 30, 60 and 90 days to see what is outcome. Would anyone care to predict how many actually close? Hint: It’s to the point now that when a property that one of my clients had their eye on goes pending, I tell them not to worry because odds are it’ll be back on the market in a few weeks.
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