‘Looking Through Rose Colored Glasses’ In Nevada
The Lahontan Valley News found a difference of opinion in Nevada. “Though the market has slowed since last year, demand for homes continues to be strong, said Bob Getto, the Fallon-area MLS director and a local realtor. Homes are spending more time on the market before they are sold, but no deep discounts are to be found.”
“‘The prices are not coming down, but the market time is getting somewhat longer,’ Getto said. ‘The buyers are not feeling the urgency to have to buy right this second.’”
“While thousands of homes are proposed in the area, the development of infrastructure will limit the build-out. Getto said, ‘All of these units proposed for future developments are not proposed all at once.’”
“Realtor Mike Berney said the fact that homes are staying on the market longer means consumers have a broader inventory to browse and more time to decide. ‘Last summer, you would have a couple of different people vying for your home at one time. Right now, there’s a lot of things to look at,’ Berney said. Berney didn’t anticipate a housing glut.”
“‘If you’re a developer and you’re building X amount of homes, you’re not going to build them if you can’t fill them,’ he said. Buyers are diverse, including Californians and locals looking to upgrade, Berney said.”
“Local real estate appraiser Jim Davis had a different take on the market.” “He said MLS numbers don’t accurately reflect the actual market because manufactured homes and bare land are not included. Homes sold by owner are not included, and some developers don’t list properties on MLS, he said. ‘The Realtors are looking through rose-colored glasses,’ Davis said.”
“The Fallon market is intimately tied to California, where the real estate market is turning downward, he said. He projected a housing glut could be on the horizon.”
“Speculative investors and outside buyers are inflating the market, he said. He questioned if local wages were substantial enough to justify houses of more than $225,000. ‘I think it’s going to come down; how much and when I don’t know,’ Davis said of the market.”
demand for homes continues to be strong, said Bob Getto, the Fallon-area MLS director and a local realtor
Susan Skyhigh, local assessor, and U. R. Broak, mortgage lender, agreed.
“Bob Getto” the real estate agent, LOL…”So did your real estate agent do a good job for you? We’re thinking of selling our house too.” “HONEY, what was our agent’s name, you know, that Getto guy…?”
Fallon is in the middle of nowhere (actually, you can see Fallon from the middle of nowhere!), over an hour from Reno via secondary roads.
The land must have cost $1/acre, at most.
When Fallon is being described as “unaffordable” you KNOW there is a bubble in Northern Nevada and that the end is near!
$1/ acre is about what this AZ desert property is worth. I asked a friend from NV about Fallon, and he said there was nothing there.
Wrong, they have contaminated water!
Fallon really is in the desert; makes Reno look like a rain forest. The local irrigation project is some of the most worn out infrastructure I’ve ever seen; extreme concrete spalling with corroded rebar hanging out. The Navy operates an airbase there for combat flight training. I find it difficult to picture this area as housing bubble country.
Fallon has a cancer cluster. I wouldn’t move there.
Ok, now, this is worse than stupid. Check out the demos on Fallon.
http://en.wikipedia.org/wiki/Fallon%2C_Nevada
As of the 2000 census, there were only 7500 people there…median income for a household was $35K. The average price of a home sold in the first Q of 2006 was $227. Something is REALLY wrong with this picture. Talk about fundamentals disconnect….
Here is a more current picture of Fallon. Wow, they now have 8,300, with an additional 3000 from Fallon Naval Air Station. And they plug Churchill County as the “Business Oasis of Nevada”. (Rollin’ on the floor with laughter!) This is killin’ me!
http://www.cityoffallon.com/about.htm
http://www.ceda-nv.org/
BayQT~
home sold in the first Q of 2006 was $227 = $227K
probably more cows than people…
about 20% of the population below the poverty line…
Nope. Even cows know better than to live there.
If I remember right, the cancer cluster is linked to rocket/jet fuel in the water supply.
Looks like green lawns and beautiful lakes forever, I am on my way right now.
Just bring your own water supply…
Fallon be’a fallen
Speaking of Nevada, does anyone know whether Battle Mountain has a housing bubble? This is one of my kids’ favorite towns to drive through, as there is “BM” on the mountain…
c’mon now stucco……you know you’re the dirty rat that points to the big letters and gets the tykes riled up.
you can’t kid a kidder
Can someone please tell me what’s the big attraction with Nevada?
Been to Vegas and it’s a nice place to visit but to live? I think of Nevada and I think of nuclear testing fallout, nuclear waste dumps, really hot summers and a landscape that is way too barren and dry. Am I missing something?
Is it a bunch of dirty old men lured to the chicken ranch?
The whole point if Nevada, was that it was a low-tax, low-cost of living alternative for Californians. At least it used to be. Now with bubble prices, they’re really isn’t point anymore.
Also, for people who hate humidity, Nevada is the place!
Are there enough really good paying jobs in Nevada so that people looking to move there now and buy their first home can afford it? My sense is that such “Bubble overflow markets” eventually mature and prices get steep, and then the crowd in the originator state (California in this case) try to locate the next best place. Is Texas becoming the new Bubble Sink du jour for Californians?
According to the handful of realtors I have talked to and builder neighborhoods I have been through…..Californians are buying up the spec cracker boxes around here…..just like in the 80’s….bubble prices on the coasts, and overbuilding in the South. My first job out of college in 1989 was ordering appraisals for the FSLIC which turned to the RTC, and I think this is worse because of all the stupid mortgage products. But the fall could take a considerable amount of time, as the financiers try to prop it up and the flippers try to keep flipping…..It will be a very bad ending!
No state income tax, very little of the nanny-state / socialism that you see in neighbor California for example. Local government for the most part thinks of itself as a curator not as the master.
1/2 of Tahoe is in Nevada.
Now that you mention it, I forgot all about that half of Tahoe is in Nevada. We drove around the lake and it was all beautiful. I guess South Lake Tahoe, where we went to a casino, was in Nevada. I also remeber some of the mountains being beautiful. As I recall, it was maybe June and some passes were still closed with snow.
And yes, it would make total sense as a low cost alternative to California.
No, it isn’t. 30 percent of the surface area of the lake is in Nevada, 70 is in Cali.
You get to see the VLB - Very Large Bomb - make a mushroom cloud, just like late in episode one of “24.” 50-50 - I’d buy a lawn chair for that, my wife wouldn’t.
Fallon is the home of the real-deal Top Gun school, which moved from California in the ’90s. I’d buy *two* lawn chairs for that — and give my wife first shot at the second seat.
If anyone remembers, during the last big run up in gas prices in the ’80’s Vegas fell on very hard times. With all that over building employing people in the housing industry, what is gonna happen in a down turn especially if CA’s stop running over that way. And I still say BEWARE of either higher property taxes or a state income tax to pay for all of that infra-structure with your new found growth (SCHOOLS, WELFARE,ROADS,FIRE and POLICE, COUNTY GOV.) …
We have lived here in Reno for 1 1/2 years now, moved here from the bayarea. I can honestly say, Reno has low wages and high cost of living - feels like we still live in the bayarea! Weather wise, its the high desert, known as the dryest state, were fierce winds ravage the area. No state tax, and not much crime, but graffiti is becoming more of a problem, even here in SW Reno. Still trying to find attributes to sagebrush- its not easy, and its everywhere.
“He questioned if local wages were substantial enough to justify houses of more than $225,000. ‘I think it’s going to come down; how much and when I don’t know,’ Davis said of the market.”
This is absolutely true. I just can’t believe that local buyers, primarily folks who work in construction and for the casinos as waitresses, bartenders, maids, etc. can keep buying these homes for over $350,000 median prices.
Simmssays…
Wackiest Products for Your Dog
AmericanInventorSpot.com
This topic describes LVLandlord to a tee!
Comment by StL Engineer
2006-04-15 13:01:52
The whole point if Nevada, was that it was a low-tax, low-cost of living alternative for Californians. At least it used to be. Now with bubble prices, they’re really isn’t point anymore.
Also, for people who hate humidity, Nevada is the place!
Yup, that’s right. And if you are a small business owner, you pay alot less in taxes than you do in California, employees have no state income tax.
The first year me and my husband moved our business from California to Nevada, our tax bill went down 40%. And back then houses were not in a bubble, and cost about $100-200K less than they do now.
Also, its an interesting town. We constantly have people visiting us…friends, family, old business contacts. It makes for an interesting social life. Back in Cali we’d be overtaxed, and probably stuck in a couple hours of traffic each day getting to and fro from work. Yeah, the weather sucks over the summer, but me and my husband are usually indoors working during the day to notice it.
Comment by Salinasron
2006-04-15 15:58:06
And I still say BEWARE of either higher property taxes or a state income tax to pay for all of that infra-structure with your new found growth (SCHOOLS, WELFARE,ROADS,FIRE and POLICE, COUNTY GOV.) …
Gawd I hope not. I really don’t look forward to my taxes increasing to California levels.