Montreux Real Estate News

Real Estate in Northern Nevada Looks more Positive in 2013

Residential real estate is improving and builders’ forecast looks more positive.  After 5 years of almost no construction more buildings are now going up in the Reno/Sparks area. With more demand for new  homes expected in 2013 residential real estate experts are more hopeful that  perhaps we have hit bottom and that we are turning around to a more positive future. With limited existing homes and a low inventory on the market, builders are seriously considering once again to start building more homes is our area.

The area saw a 65% increase in new home sales in 2012.  Spanish Springs, south Reno and north west Reno showed the most construction activity in 2012 and that trend is expected to continue this year, with an estimated of 925 new homes sales and 950 permits. In Montreux alone we have approximately 7 new homes being built at present, with 23 home sales in 2012, up from 2011,  and only 26 homes on the market at present, we are in a situation were  inventory is low and demand is up.

Nevada had the second-highest home foreclosure rate in the nation last year, but in the longer term, the state’s is now showing improvement. For the first time in 5 years Nevada is not at the top in terms of foreclosure filings, taking second place behind Florida.  This was reported in tracker RealtyTrac 2012 report.  Additionally, Nevada’s rate reflects a 56.5% decline from 2011 and more than 70 percent drop from 2010.

The commercial real estate  market is likely to see a slower recovery as no new construction is expected with the excess of inventory already in the Reno/Sparks market.  They predict it will continue to be slow but steady.

Governor Brian Sandoval believes the table has turned and there is light at the end of the tunnel for Nevada.  With unemployment   lower than it has been in over three years and falling faster than almost every other state in the nation.   With Education taking budget priority.   $300 million, will be allotted to three areas – K-12 education, higher education and the Department of Health and Human Services.  There is no doubt in my mind that Nevada is still a great place to live!

Home Prices Rise 10 Percent in Reno and Surrounding Areas

Low inventories and high demand have driven much of the price increases and sales  in the market recently.  As a result home prices in the Reno-Sparks rose 10 percent in September, compared with a year ago, according the Core-Logic’s Home Price Index report released yesterday. Not including sales of distressed properties, prices for existing homes rose 11.9 percent last month, compared with September 2011.  Nevada saw one of the highest increases, making it one of the highest home appreciation rates in the US.  We are still more than 50 percent below its peak prices before the real estate market collapsed in Nevada.

News on home prices confirms other good news about housing. Single family housing starts are 43% ahead of last year’s pace, existing and new home sales are also up, the inventory of homes for sale continues to drop and consumer mortgage default rates are reaching new lows. Further consumer confidence continues to rise. Even as we end the seasonally strong home buying period, the statistics are positive.

In the past three weeks, four homes have gone into escrow in Montreux  with an average sale’s price of $1,532,250, or $321.50 per sq ft.  Significantly higher per sq foot than 5 months ago.  With reduced inventories, improved buyer demand and home prices over the past five months makes us optimistic for continued recovery in the housing market.

 

Auction of Cottage at Montreux Golf and Country Club, Reno Nevada.

Today, January 25th, I went to the first live auction at Montreux. The property was a small cottage on Wetzel Court, 2,250 sq feet.

I was surprised to see many home owners were there to watch the process and a few ready to bid.  One could bid one line as well. Of course we had all done our due diligence, had the place inspected for any structural problems or pest issues.  The property was last sold for $900,000 and the opening bid was going to be $50,000.

Most people where not ready to go higher than $400,000 dollars.  I would say the place needs about $15,000 put into it to make it a good rental or 2nd home.  I know for certain that one could not build this cottage for the price it sold for.  It is extremely high end  with top appliances, great hardware,  tiled and carpeted floors and  has the 11 inch thick walls, built out of Arxx.  Added to this one has to remember that is is  in the private gated community of Montruex Golf and Country Club  with its Jack Nicklaus Signature golf course.

It sold for $425,000 dollars to a bidder on line.  Now the seller still has to accept the offer.

If you or anyone you may know have real estate questions or inquiries in the Montreux, Galena Forest, ArrowCreek, Saddlehorn, St. James or Scotch Pines areas, please contact Louise Simpson by email at louise@montreuxgolf.com or by cell at (775) -750-1901.