HOME SALES IN THE NORTHGATE/MCQUEEN AREA LAST QUARTER OF 2009

127 homes were reported as sold through NNRMLS in the Northgate/McQueen area (area 121) from September 01, 2009, through December 31, 2009.  The average price for the 127 properties reported as sold was $203,732.  The highest price for a property reported as sold was $365,000.  The lowest price for a property reported as sold was $78,750.  The average market time was 112 days.

SOLD INFORMATION FOR SAME PERIOD IN 2008

83 homes were reported as sold through NNRMLS in the Northgate/McQueen area (area 121) from September 01, 2008, through December 31, 2008.  The average price for the 83 properties reported as sold was $246,972.  The highest price for a property reported as sold was $535,000.  The lowest price for a property reported as sold was $73,000.  The average market time was 91 days.

Note:  This information is for the Northgate/McQueen area of Reno only.  This representation is based in whole or in part on data supplied by the Northern Nevada Regional Multiple Listing Service.  Neither the Reno/Sparks Association of Realtors nor the Norhthern Nevada Regional Multiple Listing Service guarantees nor is in any way responsible for the accuracy of this report.  Data maintained by the NNRMLS may not reflect all real estate activity in the area.  The information is only for propeties sold through Northern Nevada Regional Multiple Listing Service.

A guest post by Robert at VAMortageCenter.com:

VA loans are growing in popularity in Nevada and across the Southwest.

The Department of Veterans Affairs now guarantees more than 2,500 home loans
in Nevada worth more than $624 million. Scores of Nevada's 237,000 veterans
are turning to the VA for help with their home purchase or refinance.

The reason is simple: Simplicity. VA loans offer qualified borrowers a host
of financial benefits that help streamline the home-buying process. Veterans
who qualify can purchase a home worth up to $417,000 without putting down a
single dollar.

VA loans also come with no private monthly mortgage insurance, higher
debt-to-income ratios than most conventional loans and seller-financed
closing costs.

This program was created specifically to boost lending to military members,
who at times struggle to build a solid credit profile because of frequent
moves and overseas deployments.

The VA guarantees to repay about a quarter of a borrower's mortgage in the
event of default. That guarantee often translates into excellent loan terms
from VA-approved lenders.

VA loans are often easier for veterans and military members to obtain than
conventional loans. About eight in 10 VA loan recipients could not have
qualified for a conventional loan.

Veterans without sterling credit can still qualify for a loan. At present,
VA lenders typically look for a credit score of at least 620.

Thousands of Nevada veterans and active-duty members may be eligible for a
VA loan. Applicants must be:
-Military members who've served 181 days on active duty or three months
during war time may be eligible.
-People who have spent at least a half-dozen years in the National Guard or
Reserves
-Spouses of those killed in the line of duty

Those who meet these standards must obtain a Certificate of Eligibility (COE) from the VA. That's a document basically proving your
ability to qualify for a VA loan. The COE forms are available online at the
VA website.

The VA uses a lending limit that varies by geography. In most parts of the
nation, including Nevada, the loan limit is $417,000.
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Welcome to the Northgate/McQueen on-line newsletter blog.  I published Northgate News for over 20 years and then stopped in 2005.  It will be published monthly, on line from now on.  I will also post information on other areas of Reno, Sparks and Northern, Nevada daily & weekly.  I hope you find it interesting and informative.  Your opinions and suggestions are always appreciated.

47 residential properties were reported through NNRMLS as sold in the Northgate/McQueen area from September 1, 2009, through October 9, 2009.  The average sold price for the 47 homes reported as sold was $212,982.  The highest price for a property reported as sold was $300,000.  The lowest price for a property reported as sold was $78,750.  The average market time for the homes reported as sold was 125 days.

               _________________________________________________

SOLD INFORMATION FOR NORTHGATE - 2008

259 homes were reported through NNRMLS as sold in the McQueen area from January 1, 2008, through December 31, 2008.  The average price for the 259 properties reported as sold was $272,717.  The highest price for a property reported as sold was $580,000.  The lowest price for a property reported as sold was $73,000.  The average market time for the homes reported as sold was 119 days.

SOLD INFORMATION SO FAR IN 2009

281 homes have been reported through NNRMLS as sold in the McQueen area of Reno from January 1, 2009, through October 9, 2009.  The average price for the 281 homes reported as sold is $215,631.  The highest price for a property reported as sold was $510,000.  The lowest price for property reported as sold was $70,000.  The average market time for the homes reported as sold was 110 days.

Note:  This information is for the Northgate/McQueen area of Reno only.  This representation is based in whole or in part on data supplied by the Northern Nevada Regional Multiple Listing Service.  Neither the Reno/Sparks Association of Realtors nor the NNRMLS guarantees nor is in any way responsidle for the accuracy of the report.  Data maintained by the NNRMLS may not reflect all real estate activity in the area.  The statistics are only for properties that have sold through Northern Nevada Regional Multiple Listing Service.

Your Realtor,

David Wiggins  CRS  e-PRO
Executive Member REOMasters Network
Allen Hainge CyberStars - Member
NFSTI REO - Certified
NVSI BPO - Certified
775-787-5203 (office)
775-848-0852 (cell)
david@davidwiggins.com

I’m often asked if this is a good time to buy a home.  Some clients are concerned that home prices may fall further than they have already.  They are assuming that the best course of action is to wait for the bottom in the market and then buy.  The problem with this approach is that you don’t know where the bottom is until you see it in the rear view mirror, meaning until you’ve missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability.  Even though interest rates have gone up in the last six months, they are still near historic lows.  Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life.  It’s important to live in a home that reflects your taste and values, yet is within your financial “comfort zone.”  To that end, it may be more important to lock in today’s relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today’s market.

Foreclosures Causing More Divorces? 

OF INTEREST TO YOU

Mortgage interest rates are down a little since my last newsletter in January.  As of February 28, 2008, I see  30-year fixed rate conventional loans available from 5.875 to  6.24% per annum for.  The FHA/VA 30-year fixed rate is at 5.75% per annum and 1.0 loan origination fee.  It does not even make sense to use an adjustable rate at this time, they are about the same as fixed rates.  Sometimes a 3 or 5 year adjustable rate mortgage is okay.  They usually have a starting rate about .50% below fixed rate mortgages.  Only good, though, if you have a valid reason for the lower rate for 3 – 5 years.  I have that type of mortgage on a few properties and will be refinancing this year.  If you are considering buying and know you will only be in your home for 3 - 5 years…this can be a good choice.  As I have told you before, when looking for a lender, try to use one that has local processing and local funding.  Give me a call if you want the names of my favorite lender.

REFINANCE YOUR LOAN??? OR NOT!!!

I'm kind of old fashioned.  Now I never thought I would be admitting that.  However, I never did consider refinancing my home mortgage unless I saved 1.5% - 2.0% on my mortgage interest rate.  The last few years, actually 5 - 10 years, I've known quite a few people refinancing every few years.  I know I'm kind of naive...but I didn't think it was very smart refinancing only to save maybe ½% - 1.0% on their interest rate.  Besides that, every time they refinanced they went back to a 30 year loan.  I never realized they were all taking out $$$$ just because the value of their home had gone up.  That doesn't make any more sense than withdrawing  most of your saving account just because you were able to save $75,000 over the last few years.  This is a BIG part of the real estate loan problems we are facing today.  It was not just the purchases with 0% - 5% down payment, it was also caused by many, many people taking $25,000, $50,000 or much, much more to buy cars, boats, motor cycles, pay off credit cards and thousands of other things.  They put everything on their mortgage debt, then went out and bought more "stuff" on credit cards and other high interest rate purchases.  Whether the value of their home went up or not, this had to lead to a crash.  OUCH!  Bad enough what went on with all the sub-prime loans that went sour...Taking out all the equity of your home had to end up a total losing proposition.  From what I see, about 25% of the foreclosures in our area were caused by people taking out all the equity they had in their home time and time again.  Then the value dropped...oops!  Wouldn't want to pay back $400,000 to my lender when my home is only worth $275,000. 

One lady I worked for had bought a home in NW Reno for about $250,000.  She then invested another $50,000 renovating the home and hoped to sell it for about $340,000.  But, the market dropped during the time she was remodeling the home.  Without going into detail, she borrowed about $100,000 on her personal residence to close the transaction when we sold the investment property for about $225,000.  She never even considered letting the lender have the home back.  Wow!  That is a person has character.  That is the kind of values my parents taught me.  I hope I never have to make a decision like that...That is a cause for some real "soul searching".

I was doing an analysis tonight for a seller and wanted to share this information with you.

Total number of condos and single family homes sold so far this year through October 29, 2007, in the Northwest & Northgate/Somersett areas of Reno is 533 homes.  The average price for a home sold was $335,776.  The median price for a home sold was $300,000.  The average market time was 116 days.

Taking a look last year, 2006, we see the following:  498 condos and single family homes were sold through October 29, 2006.  The average price for a home sold was $355,758.  The median price for a home sold was $322,750.  The average market time was 93 days.

Soooo...lets go back to 2005, when we really were short of properties for sale.  787 condos and single family homes were sold through October 29, 2005.  The average price for a home sold was $367,374.  The median price for a home sold was $335,500.  The average market time was 79 days.

The above information is taken from our local Multiple Listing Service.  Neither the Reno/Sparks Association of Realtors nor it's MLS is responsible for the accuracy of this information.  Sales data shown may not  include all sales in the area.

It looks like Reno and Sparks have joined the big cities that have experienced this type of market at different times in the past.  I know it has happened  in California before and I remember when Denver was in a similar market and also Texas went through a difficult time in housing a number of years ago.  I will show you some more comparisons in the days to come.  I have seen information presented showing that over a 10 year period there has been about a 6% yearly increase in value on residential properties.  Let me know any information you would like posted about Reno and Sparks real estate.  You can also post information you might have about city development or other interesting topics.

Thanks,

David Wiggins   CRS   ePRO   RECS

www.RenoRealEstateGroup.com