The Steady Drop in Local Foreclosures - KTVN Channel 2 - Reno Tahoe Sparks News, Weather, Video

The Steady Drop in Local Foreclosures

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 It wasn’t that long ago… the Reno-Sparks real estate market was populated by hundreds of lifeless empty houses abandoned by owners, foreclosed and waiting for offers that were slow to come. For real estate agent Megan Lowe, it really was the Night of the Living Dead. As she told us, "59% of Reno-Sparks homeowners had to foreclose in 2012…actually closed!"

The house she was showing us in Somersett was one of them. The builder bailed out of 2460 Painted River Trail during the dark years. Lowe said, "It went into foreclosure and the bank took it back and the bank sold it." After its second owners, it’s on the market again as a winner. Bought in 2010 for $808,000, today it’s priced at $1.5 million…almost double what it sold for 4 years ago. As Lowe explains, “The market, it’s crazy, its coming back strong right now. People are realizing the potential up here at Somersett. And we're seeing more positive things happening…more and more businesses coming into the Reno market."

And it's not alone. Across town in D'andrea, 2529 Anqua Drive has gone from being bought in foreclosure on, to sellers today pricing it at a big profit. Lowe said it’s now “at a market value price of $390,000, so they have seen an increase since 2009."

At the height of the foreclosure crisis, sales of distressed housing outpaced all others, depressing prices and undercutting home builders. In the past 2 years, close to 25,000 foreclosures were completed in Nevada. Now as we get further away from the robo-signing era and see a rebuilding market, Reno-Sparks finds itself with fewer homes in trouble. Corelogic’s new report out today said foreclosures now represent only 2.2% of all Nevada homes with a mortgage.

In Reno-Sparks, the recovery is dramatic. Today, foreclosures and short sales make up only one third of the home sales they did 2 and a half years ago...from 59% of homes in 2011 to just 19% of homes sold so far this year. Short sales are becoming more rare…banks see the increasing values too. As Lowe said, "They aren't willing to take less anymore, and it’s more and more difficult to get those short sales approved.”

And fewer distressed homes have done a number on the Reno-Sparks median sold price…a big number. Look at what’s happened in just a few years: from a $154,000 median in 2011, to $305,677 today. Yes prices have gone up…but enough buyers today see homes like these, as still a good deal.

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