The city of Reno ranked last among real estate agents across the country as a city least likely to recover from the current housing crisis anytime soon. If you have been following what has been happening with Northern Nevada's economy over the last several years, this survey should not surprise you.
Reno has one of the highest unemployment rates across the nation, and, as recently reported in the RGJ a few weeks back, Reno has very amount High Shadow Inventory.
Shadow inventory refers to real estate properties that are either in foreclosure or homes that are being sold as short sale properties and have not yet sold. Shadow inventory creates uncertainty about the best time for a home owners to sell. People are afraid new listings might cause prices of homes to decline even further so they hold off putting their homes on the market. Lenders will also hold onto forclosed properties for fear of prices dropping.
So who participated in this survey? The largest real estate social network ActiveRain Corp surveyed nearly 2000 real estate agents and real estate brokers in the US and Canada to try to decide and understand if the national and local real estate market and economy are poised for recovery this year. Read the full article here:
The article shows statistics that American real estate agents expect the US real estate market to be largely flat from 2011 to 2012. Real estate agents predict that real estate values will be flat from 2011 to 2012, signaling a bottom to the real estate market or the end of the real estate bubble. Given historically low interest rates as well as a bottoming of real estate values, real estate agents expect that the number of real estate transactions and new construction starts will increase slightly in 2012.
They believe real estate to be local so the amount of time to recover will very from city to city. As I mentioned above, Reno may not see these improvements because of our high unemployment rate and the high amount of shadow inventory properties we have.
A few other cities that rank about Reno are New York City, Chicago, San Diego and Sacramento. All cities that had huge decreases in home values over the last several years. The top cities who are expect to recover this year are Austin, Boise, Naples, Dallas and Denver. Below is a chart that ActiveRain assembled to help better understand the predictions of the real estate agents who took the survey. Be sure to read the complete article to fully understand the though process behind the survey results.
A graph created by ActiveRain that will show and explain the survey predictions, or not!
Data provided by ActiveRain.com. Join 215,590 http