Real Estate Market In A Nutshell

In this blog I am going to put the real estate market, nationally and in the Greater Reno – Tahoe area, in a nutshell for you.

Nutshell Highlights:

• Pending Sales Are Up
• Bottom of the Market
• Reno Market Snapshot
• Slow Growth
• Tax Credit (First Time Buyers)
• Mortgage Loans
• Inflation and Mortgage Rates

Pending Sales: Nationwide homes which entered escrow were up by 5.3%. The South made the biggest jump with an increase of 9.3% and the Western states were second in increased pending sales with an increase of 4.6%. The Northeastern states pending sales increased by 3.4%while the Midwestern states saw an increase of 1.3%.

Bottom of the Market: The housing recession appears to have reached bottom and is on the mend. Pending sale reports were up in every region of the country, indicating a definite turn-around in the housing market. Pending sales (homes entering escrow) are strong indicators of the real estate market’s direction because pending sales become the closed sale reports for the next two to three months.

Reno Market Snapshot: Inventory is down slightly. Pending sales have held steady in both July and August. Foreclosures are still a driving force as well as short sales, keeping home prices very competitive and the most affordable in years. It is a great time for buyers to make homeownership theirs.

Slow Growth: The real estate market does appear to be turning around although analysts are predicting that growth in the market will be slow to moderate for the next year or so. When the housing market began its downward spiral most of the nation was considered to be overvalued. Today, the National City Corporation’s Housing Valuation Analysis tells quite a different story. Most areas are considered to be valued correctly or to even be undervalued. Buyers in every region of the nation are recognizing this fact and are entering the real estate market in larger numbers.

Tax Credit: The Housing and Economic Recovery Act has, for a very limited time, made available to first time buyers a tax credit up to $7,500. Analysts are estimating that the tax credit could create two million real estate transactions, stimulating the market even more. The tax credit is like a 15 year, interest free loan. The money must be paid back to the IRS with a $500 recapture tax debit. The tax credit may or may not be a wise choice for you. For your personal financial situation you should speak with a financial planner or tax consultant.
Note: First time buyer is defined as anyone who has not owned a home in the past three years.

Mortgage Loan/Rates: Mortgage guidelines are changing. Due to tighten credit standards and changing guidelines, speaking to a mortgage lender now is a very wise choice. A qualified lender will be able to help you determine your buying power and the best time for you to buy. An example of this is the FHA loan down payment requirement which is approximately 3% but will be increasing to 3.5% after January 1, 2009FHA is currently the most popular of loans for first-time buyers due to its low down program and less stringent credit guidelines.

Inflation and Interest Rates: Fears of recession diminish each day. Experts are now predicting that the economy is in a slow growth period and will most likely continue in that vain for the next few years. However, the Feds are carefully watching the inflation rate which rose 0.3% according to the latest reports. Historically, if the economy experiences an inflationary period, interest rates rise, as they did last week. Today’s rates are 6.57% up from 6.375%.

Interest rates greatly affect your purchasing power. Waiting for home prices to decrease further may not be the wisest decision if interest rates rise. Many economists are predicting that the interest rates will go up after the election. Currently, the Feds have made no move to raise or lower the short tem interest rate and continue to hold to their “wait and see” policy.

Related Articles:
Washington Report: Housing and Economic Reform Act

Be Part Of The Economic Solution

Good News For Buyers In Calvert County

100 Years and Counting

Recently, the Saint Mary’s Regional Medical Center celebrated 100 years of service to the Reno community.  There was no fanfare; no big cake lit with candles, no large bouquets of flowers, no celebration dinner, no fireworks. Instead, the day passed quietly with the unveiling of a statue of Saint  Dominic at the Hospital.

Saint Dominic was the founder of the order in which the sisters of 
Saint Mary’s serve. 

They say God works in mysterious ways and this must be the case with the Saint Mary’s Regional Medical Center.  A group of sisters were traveling from their convent in California to fulfill a need in Kentucky when one of them became ill.

The group stopped in Reno to allow the nun to recover. The bishop came to the sisters and asked them to stay and fill the need in the Reno area by starting a Catholic School. Needless to say the nuns agreed.

Over 160 of these dedicated souls have blessed the Reno area with their service for one hundred years.

The nuns opened the school; the bishop told them was so needed, in 1877. Mount Saint Mary’s Academy provided boarding school and day school to the children of Greater Reno area. In 1897 the convent began a novitiate program.

The sisters transformed their convent and school into a hospital in 1908 when a terrible flu epidemic hit the area. In those early days the hospital was known simply as the Sister’s Hospital. In 1910 the sisters began a nursing school. IN 1923 the American College of Surgeons honored the hospital with accreditation.

The nursing school has since integrated and became a part of the nursing program at Reno’s University of Nevada, the Orvis School of Nursing.

Today, seven sisters still reside at the convent and serve the community. Four of the sisters serve at the medical center which employs over 2,000 and serves nearly 200,000 people yearly. The remaining three sisters work in the community.

Saint Mary’s Regional Medical Center continues to offer quality medical care through its main site, clinics, health centers, and mobile outreach vans.

In the words of Sister Maureen McInerney, “From the earliest days, some things have not changed… the main theme, the main emphasis, is that we are here for people in need.”

The Reno community is thankful for all the years of dedication and service provided by the Dominican Sisters and Saint Mary’s Regional Medical Center.

Nevada’s Business Environment Ranks #6

Despite the downturn in the economy and the slump in real estate throughout the nation, Nevada’s business climate continues to improve. Nevada’s pro-business environment, location, climate and quality lifestyle make it a viable choice for business.

Development Counselors International of New York have completed a three-year survey in which it finds Nevada’s pro-business climate one of the best in the country. More than 280 executives were surveyed.

Nevada’a overall ranking was rated as #6 in the nation by those surveyed as having one of the best climates for businesses in the nation.  The economic climate in Nevada was ranked as #2 with growth prospects ranked as #8. Other factors considered were business costs (#26), labor market and the regulatory environment (#29) as well as quality of life which ranked #47. Nevada is the only state in the west to rank within the top ten.

Forbes has also completed its annual report of Best States To Do Business in and has ranked Nevada as the 19th best state, up from #22 last year.

In years past, California and New York were the number one places for doing business.  Now these states rank as having the least favorable business climates due to the high cost of doing business. Geography is no longer the factor it once was. The recent advancements in computers and telecommunications have opened the doors for business to relocate to areas that offer them the best business opportunities and a quality lifestyle for their employees.