Reno Near the Bottom of the Market?

Reno and other areas of the nation may be reaching the bottom of the market.  The key to the market now is not the foreclosure rate, but consumer confidence.  Although, nationwide, the delinquency rate is the highest since 1972, the foreclosure rate remained flat for the last three quarters of 2008.  The delinquency rate is now being attributed to the economy rather than sub-prime loans.  The delinquency rate is the number of homeowners who have missed one or more payments (approximately 11% of all mortgage loans).  The foreclosure rate is the number of homes which were foreclosed on by the lender (3.3%).  Housing affordability, the current low interest rate (4.5%) and the decline of foreclosures has brought a slight increase in sales and a stabilizing of home prices.  Homes sales in 2008 were 23% higher than the home sales in 2007.
 
President Obama announced a program last week which will allow some homeowners to refinance their current loans and a program to help delinquent homeowners work out loan modifications with their lenders.  The programs are expected to help as many as 9 million homeowners nationwide.
 
There are many variable factors that will influence when the bottom of the market is reached in any area.  In addition, no one knows when that is exactly until after the fact and the figures are analyzed.  However, there are indications locally and nationally that the housing market is on the mend and the bottom of the market is in sight.  How potential buyers perceive the market and their confidence in their own personal finances is the new determining factor affecting the Reno housing market.