Thought of the Day: Could a Lending Meltdown Occur Soon?

The Big Short All Over Again?

Okay, before you get freaked out, I want to preface this blog by saying that these are just some thoughts I’ve been kicking around from analyzing the recent real estate market. So before you believe this could be the Big Short of Real Estate, take a deep breath and relax. I’m simply inviting you into a casual conversation about the mortgage market and where we are now…not necessarily claiming anything about its demise. I am very curious to hear your thoughts – please read on!

Here’s My Question:

Could the low down payment amounts for a home purchase (approved by lending institutions and obviously the government) possibly be creating a housing shortage? If all of these  buyers were taken out of the market until they saved 20% for a down payment would the housing shortage be here? 

I’ve purchased two homes in my life. (Without trying to age myself) I bought a home in 1987 and 1999 and both times I was required to have 20% down to purchase my home.

Lately in the Real Estate market in Reno, houses on the market are very scarce and it’s turning into a bit of a zoo. Once listed, they’re usually only on the market a few days before an offer – even multiple offers – are on the table. At the end of January 528 homes were on the market and we sold 400 of them!

Unlike 20 years ago when a 20% down payment was common place , nowadays a buyer can secure a loan with as little as 3% down, and with some grant programs, even lower.

I wonder sometimes…could a lending meltdown occur again because these buyers are getting into homes with “no skin in the game?

What’s Your Opinion? Please comment below!

Take the Tour! Reno’s Hot New Property 565 Northstar Dr.

This adorable home in Old Northwest Reno welcome buyers with its spacious backyard, beautiful vintage charm, and great city views.

When you walk in, you’ll step into a spacious living room with original brick fireplace beckoning you to relax, grab a blanket and cozy up at home on those cold winter nights.

The main kitchen has plenty of room and counter space to accommodate the family who loves to cook and gather around the table for dinner.

You’ll also enjoy spacious rooms, brand new windows and paint, beautiful views of the Hunter Lake Mountain Range, and the comfort of efficient heating with a gas boiler system.

Check out More Listings in Reno NV

Watch the Video!

565 Northstar video

If you’re interested in taking a tour of this property, please call me at (775)544-6400.

Whether you’re interested in buying or selling in Reno, it’s important to know what’s new in the market. If you’d like a more detailed report, email me here.

 

 

 

Why Buyers are Raving about this Hot Reno Property

If there’s ever a time to buy in Reno, it’s NOW…And I’ve got a stunning property that you NEED to see if you’re on the home hunt. 2160 Manzanita Lane in Reno, is fully remodeled, perched just above the 7th and 8th holes at Lakeridge.

The functional floor plan includes the main level with master suite, fabulous kitchen and plenty of gathering space inside and out. Off the kitchen is the great room w/ vaulted ceilings & stunning views. Very little remains of the original home – you don’t want to miss out on this upgraded beauty!

To add an element of luxury, the kitchen remodel includes: cherry cabinetry, granite slab counters with metal and glass tile back splash, and high quality Kitchen Aid & Wolf appliances.

Manzanita reno nv

Manzanita kitchen

The long, private driveway from Manzanita leads to this gorgeous home with expansive views of the pond, fairways & Sierra Nevada mountains.

2160 Manzanita

What are you waiting for? If you’re interested in schedule a showing of this unique property in Reno, give me a call now. (775) 544-6400. Hurry, this beauty won’t last long!

2160 Manzanita backyard

Hot New Property 10845 Serratina Dr.

Take a peek inside this unique home in the gated South Meadows Dorado community. This 4 bed/4 bath home is the perfect place to enjoy the Sierra Nevada sunset.

Some  features include:

  • The spacious kitchen which opens to the dining and great room.
  • The master suite upstairs with a reading area, master bath with dual vanities, and marble accents.
  • Every room in the house has a private bathroom and balcony
  • The beautiful low maintenance backyard and the large courtyard, ideal for outdoor entertainment
  • Take a short, scenic forty-minute drive to the beautiful shores of Lake Tahoe

Check out Photos:

Watch the Virtual Tour:

Reno 911: The “Biggest Little City” Grows Bigger!

Reno Continues to Grow – What’s the Deal?

As you know, whether you’re a resident or just visiting – Reno has been changing over the years. Investors and developers have been dropping millions of dollars to give the city a much-needed facelift. The urban core features a new, hipster Mid-town area (located in downtown Reno) the freeways are looking more inviting with improved aesthetics (although the spaghetti bowl traffic seems to never end) and casinos have been given costly updates.

freewayArt
Photo Credit: Ronni Hannaman

(Above) With every new section of road they built around Reno, new artwork has been popping up on the walls, adding to the esteemed art scene of the “biggest little city.”

The newest section of freeway actually extends to Carson City, making the commuter’s experience much more enjoyable, as it’s lined with interesting metal artwork showcasing our city’s unique history.


Reno’s Downtown Action Plan was devised with several key elements in mind: the economy, the environment, and the experience. As the city continues to grow, thousands of individuals, groups, City staff, and appointed officials helped to develop an action plan in hopes to facilitate change, and make Reno a more livable, prosperous and vibrant space to enjoy. From parking and transportation to housing, jobs, and public spaces – the comprehensive action plan is definitely worth reviewing:

Read the Reno Action Plan here.

Reno's action plan

Reno’s Growth, Latest Report from EDAWN

EDAWN’s EPIC Report forecasted a five year projection of over 52,400 new jobs. Now, almost three years into the predictions, reports show that we’re actually 10,000 jobs ahead of projections as Tesla, Panasonic and Switch continue to ramp up their hiring efforts. In case you missed it, discover the actual numbers graphs:

Predicted Employment Growth Tracking

Edawn_EPIC_Sept17_image013

Predicted Resident Growth Tracking

new residents reno


Number of New Housing Permits

housing Reno nv

Housing has been a bit of a concern, but it looks like we are making progress: The chart above shows the number of permits for new housings units. At, 6,000 units a year, Reno will be meeting the expected demand for housing based on current and projected job growth. Fun fact: we haven’t had more than 4,000 new housing permits since 2006!


For more information on Reno’s employment and resident growth projection, visit EDAWN’s website.

 

Median Home Sale Price Hits Peak in Reno!

The median home sale price, in Reno/Sparks, hit it’s peak in the month of July at $355K. By the end of September, it went down to $335K. This drop is certainly a seasonal effect but also shows that the majority of home sales are in the lower end, thus dragging down the median home sale price.

We are selling more houses that are less than normal average, so it’s actually a great time to buy in Reno right now! If you’re in the market to purchase a new home, check out my hot new listings here.

This Magical Owl Shoots Lazers Out of Eyes, Reno Mural Expo

The landscape of downtown Reno is looking extra artsy lately. This October, the Reno Mural Expo boasts 30 dynamic artists (including 16 locals) who have transformed 31 vacant walls and alley ways into an outdoor gallery of art.

I couldn’t pass up this opportunity to check out these unique statement pieces, so I set out with my camera and snapped some novice shots. I’m not sure what my favorite style was – the abstract graffiti-type illustration or the surprisingly realistic and evoking “nature” piece.

The coolest part was driving around to all these neighborhoods and getting out among the people and all the cool happenings. It took me a few hours but had a blast! I love downtown and midtown Reno.

Check out the photos below and comment below with your thoughts! Do you have a favorite piece?

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What is Today’s Market like in Reno, NV?

There’s no change – this month the demand for affordable housing in Reno is still high. In the last month in Reno/Sparks we have sold 765 homes, with 1,127 active listings.

months of inventory

To exhaust the inventory it would take only 1.5 months, but in a balanced market it would require about 4-7 months of inventory. This obvious skew is likely because we have 170 listings in the $1M+ market range.

In the last year we’ve sold 138 homes that were $1M+. The average days on market for them were 230 days. The buyers market is in the $1M+ range. All sellers of these pricey homes are taking a haircut to sell them!

The good solid sellers market is $750K or less, assuming the home is priced well and in good shape. That balanced market is $750K-1M.

Are you looking to buy or sell your next home? Give me a call today! 775-544-6400.

Not ready to take the leap? Check out my listings here.

New Listing 2969 Stonebridge Reno NV

Beautiful Home | 5 Bed 4 Baths | JUST REDUCED $789,999

 

My new listing is definitely a must see! This stunning single level home is located in the desirable community of ArrowCreek. The large front entry & courtyard beckons a feeling of calm with a quiet running fountain, and beautifully landscaped front and backyard. Inside, the spacious floor plan allows for easy entertaining with a large kitchen and dining room, luxurious fireplace, and expansive, private backyard – perfect for summer nights with friends as you listen to your relaxing waterfall. Within walking distance to the clubhouse, swim and tennis center!

Other important features to note:

  • Quiet neighborhood very low traffic and noise
  • Extensive irrigation system for yard makes makes it easy to water plants and trees in the front and back yard
  • Private gate provides added safety
  • Large master bedroom and bathroom for maximum comfort
  • Large three car garage with access to backyard from both sides of the house
  • Lots of storage space in the home and garage
  • Impeccable landscaping

Want to see more? Check out the virtual tour here.

Not quite what you’re looking for? Check out my other listings in Reno!

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