Residential Reno Market Poised to Rebound

Harvey Fennell attended the Leading Real Estate Firms of the World and the  Real Estate Service Providers Organization annual meetings in Orlando, Fl last week. There were a number of excellent speakers from the real estate industry presenting at the conference with some up beat thoughts.  For one, they predict that the residential market is poised to rebound in most markets, fairly sharply in some.  One expert predicted the Reno market was due for a sharp increase in the second quarter of 2012.  I certainly hope this is the case. Part of the reason is the significant drop in inventory in the lower half of the market.  The drop in inventory is driven by a couple of market forces: 1. New construction virtually stopped when the recession hit, and 2. The foreclosure activity is or will be slowing significantly due to SB 284.  There are also a number of local investors  and now institutional investors who have been snapping up foreclosed properties and converting them to rentals. The banks have been slow to bring their “shadow inventory” to market as they grapple with consumer lawsuits and SB 284. Given historic low interest rates and prices that have fallen back to levels seen a decade ago, many buyers will get off the sidelines with any tick up in prices. And prices are bound to rise with the inventory shortage and the rush of investors into the residential market. So for you investors out there, now is the time to get moving and pick up some good rentals. You can get some attractive rates of return from a conservative residential rental property that should range between 7 to 9 percent.]]>