Reno’s Steep Decline in Foreclosures

Ever wonder why there seems to be no available homes in Reno anymore?

Consider this: In June 2011 — just last year — we had 406 Notice of Defaults recorded. This June we have 83. On dollar amount the difference is $189 million. That’s the difference in price volume decline from last year’s NOD’s to this year. Which makes me wonder, it’s not like there were fewer homeowners defaulting on their loans. Where are those homes? Why is it not being sold in the market?

Here’s a complete picture Reno’s dramatic decline in foreclosures:

Reno foreclosures numbers hit lowest in five years Reno’s steep decline in foreclosures last four years.

 

Now, it’s anybody’s guess what the heck is happening behind the scenes — why inventory is so low that it is now measured by days rather than months.  Remember that old nerdy term ‘Months supply of inventory’? If this continues we might find that word extinct in the Reno lexicon.

My guess is the banks are experimenting in better ways to profit from thousands of foreclosed properties under their coffers. Meaning, there has to be some kind of paradigm shift where banks view these homes as something they could benefit from not just get rid of (e.g., 2007-2010).

There are growing evidence that this is where they are headed:

NPR’s Banks as Landlords

“Across the country, big banks and other large investors are buying up tens of thousands of foreclosed rental properties. “

“The sheer volume is overwhelming, Leonard says. The Oakland city attorney says foreclosed properties are being bought and sold so quickly, it’s hard to know whom to hold responsible for what. The banks don’t return calls made by the city, officials say.”

 

NY Times Bank of  America Tests Rental Program:

“Bank of America said Thursday that it would offer a small number of customers facing foreclosure the option to remain in their homes and rent the property instead. The program highlights how investors are increasingly interested in becoming landlords on troubled properties.”