Reno Nevada Homes - Prices Drop - New Home Sales Stall

The Reno, Nevada real estate market was so high a few months ago, that an average home, with a $100,000.00 down-payment, would still have a mortgage payment that would set you back $3,500 a month. That was September 12, 2005…

Reno, Nevada (PRWEB) May 15, 2006 -- Reno Nevada homes are staying on the market longer, and longer. Over the last three months the Reno/Tahoe real estate boom of a few months ago has all but dried up. Buyers are not snapping up those million dollars homes that are offered, heck, they used to be less than half that price one year ago.

A lot of folks in Reno who have been trying to sell their recently re-financed [over inflated homes] are saying "few calls, much less buyers have come their way since last summer." One Reno realtor said some of his million dollar properties for sale have "dropped more than 25% in price since January".

Many Reno residents predict that if prices do not come down, and come down fast it will leave thousands of real estate investors with properties they suddenly can't afford.

Economists say “the result of all this could set off another Great Depression where homeowners lose their property due to high interest payments, or their inability to make the payments. The banks will eventually come in and take the house from you, but - if there is a silver lining to this black cloud - they would have to drop the prices at auction to avoid their own financial ruin.”

What should a house in Reno cost? Remember, a 3 bedroom home with an acre of land would cost $200,000 in Reno just a few years ago. Now the same piece of dirt is now being offered at a million dollars or more. What's the deal?

Land that was just $25,000 an acre a few months ago is now more than $100,000. Some experts blame the price explosion on uneducated buyers from San Francisco and Las Vegas. "They are used to paying a million for a studio" said one Reno Nevada realtor... "They are the only takers these days in Reno".

For the rich, the number of million dollars homes for sale in Reno and Tahoe is astounding. The problem with the area is the lack of anything affordable. A huge portion of Reno Nevada News readers surveyed said, "Something has to be done about the lack of affordable housing or all the regular folks" will have to find another place cheaper to live. They are also glad to hear that prices are beginning to come down.

Zane Durant - Editor

www.RenoRealEstateMarket.com

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