Funds Approved to Help Stabilize Reno's Real Estate Market

Last week, the Reno City Council approved $4.5 million in funding to help stabilize Reno's real estate market.  Three weeks ago, I told you in my blog, Reno and Sparks To Buy Foreclosed Homes, that the City of Reno and Sparks would be purchasing homes in an attempt to stabilize home values.  The agreement reached between the Reno Housing Authority and the City Council is the next step.  The federal funds will be received through the Neighborhood Stabilization Program and will be allocated to the Washoe County HOME Consortium.  The City of Reno will purchase and rehabilitate foreclosed homes in three neighborhoods.  The rehabilitated homes will then be sold or rented.  When any of the homes purchased through the program sell, those funds will be used to purchase more homes.  As you well know, the number of foreclosed homes greatly impacts home values.  The goal is to reduce the number of standing inventory (of foreclosed homes) in these hard hit neighborhoods.
 
In the near future, when the funds are received the City of Reno will hold a Town Hall meeting to help potential home buyers purchase the homes.  You can learn more about the program by contacting Terri Hendry by phone (775-326-6309) or email (hendryt@cityofreno.com).
 
Our prices are declining about 1.5% a month, with an average home sale in Reno in December at $240k and about $210k in Sparks.  Our inventory, however, is steady, with 50 homes or so month to month.  That tells me that more of the homes are fairly priced and most of the sellers are "motivated".  We'll have to wait and see what the January and February numbers are to see how things are looking for 2009.  There are some fabulous deals out there.  Of course we never know when the market turns until the prices start to rise.