Downtown Reno Picture
There was an 18% drop from the peak in U.S homes in the process of foreclosures. We’re down to about 1.7 million homes, still a lot of “distressed” homes but it surely lost some steam from it’s peak (down 18%) .
I was reading a report on our local Reno foreclosure market and discovered something similar:
“Existing single family home sales managed to increase 2.8% in 2010 while the median sales price dropped another 7% to $171,900, largely a result of short sales and bank owned homes flooding the market. With the “distressed” market losing steam, though, it will be interesting to see how the numbers shape up in early 2011.”
Basically, demand is up 2.8% for Reno real estate but prices went down 7% in 2010. But current foreclosure numbers in Washoe County (Reno, Sparks, Incline, etc.) gives us a different view — a dire one:
Reno Foreclosures Update: Jan 2011
In January of this year, foreclosure was down -36.7% from last month (Dec 2010); down -41.90% from the year before (Jan 2010). In short, so far in 2011 it doesn’t look real good.
You’ll hear the term ‘shadow inventory’ a lot and what this simply means is the number of homes foreclosed by the banks (banks now own it) but does NOT yet have a for-sale sign on the front yard — is not in the market yet. A lot of people are scared of the real effect of foreclosures because they say that the current number of foreclosures is mis-represented, there are more foreclosures out there to flood the market.
Oh boy, even typing this stresses me out. I don’t know how that will play out but I still believe that one way or the other, the Reno real estate market will eventually recover, come hell or high water.