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While northern Nevada (areas like Reno-Sparks) might be seeing a slight resurgence in home sales, the same cannot be said of the south. Las Vegas and the surrounding areas have actually seen an increase in empty homes. Currently, there are almost 170,000 vacant homes in southern Nevada, almost twice the number of empty homes in 2000 (during the last census).

The housing market bust has taken more than just the wind out of the market’s sales – it’s taking homeowners out of their homes. A very high percentage of the homes now standing empty are foreclosures, most of which were owned by upside down homeowners (those who owed more than the home was worth after the market crash). Quite a few of these homeowners simply handed the homes back to the bank once they realized just how bad their situation really was.

The news continues to get worse for the area, as well. While the state’s Foreclosure Mediation Program has been a good thing for many homeowners, it’s not enough to stem the tide. Currently, home prices are plummeting around Las Vegas (and in many other areas of the state). The largest reason for that continued depression is the increasing incidence of short sales and foreclosed homes on the market. The average price of a home has dropped from almost $300,000 to just over $115,000 in most areas, leaving homeowners holding a very large bag. As forces continue to push home prices lower, more and more homeowners will feel the pinch and the rate of foreclosure is expected to move even higher.

Further fueling the problem is the fact that Nevada’s unemployment rate is not getting any better. No work equates to no money, and more homeowners will face the loss of their homes because of it.

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Florida has a long history with expensive real estate. Even property located inland can be quite pricey, much less that found along the state’s massive amount of coastline. All that cost equates to a huge potential for foreclosures with the real estate industry in shambles. Florida actually has one of the highest rates of foreclosure in the nation. However, it seems that at least one law firm handled those foreclosures improperly, and now is being forced to pay $2 million in penalties.

The firm handled cases for several different banks, all of which have come under scrutiny recently for signing the forms without actually investigating the foreclosure cases, as mandated. Some documents were even notarized improperly. In the case of the Florida law firm (Marshall C. Watson), homeowners found that their forms were signed robotically, and that some forms were even forged outright. Some even did not have their foreclosure notices served correctly.

The ongoing scandal has touched far more than just Florida, though, and this law firm will not be the only one forced to pony up funds for penalties on these cases. Many major banks (like Chase, Wells Fargo and others) have been implicated, and the crisis actually spans the entire nation. Federal litigation is in process, though most banks have reached a settlement agreement, in which they express no guilt, but do offer some recompense and security for homeowners and potential buyers.

The most direct result of the fiasco is that buyers have had their confidence in banks shaken yet again. This is not good news, and the good done by the settlement is questionable in the face of how these banks have handled the entire situation.

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The City of Brotherly Love might have just gotten a little less loving. The city recently voted to institute a new property assessment process to calculate property taxes throughout the area. In 2010, the city collected $1 billion in property taxes. The new assessment method will bump that up by $200 million or so. However, don’t expect everyone to be taxed equally.

The Philadelphia tax assessment will be made based on market value for the home in question. This will hit different homeowners in several ways. Some will find that their tax burden has increased, while others will find they actually get a break on their bill. While this might be something of a shock to those outside the area, it’s actually good news for many residents. It seems that the city’s assessments have been so inaccurate that the inequities were significant across the board. To combat the problem, the mayor actually froze all reassessments in 2010.

Apparently, property values had increased by about 20% between assessment method revisions, meaning that the city has lost out on quite a bit of revenue. The current bill will help to recoup some of those lost funds, while hoping to even the playing field a bit in terms of fairness for the future.

Just how the new property tax system will play out is uncertain, as is how it will be received by the city’s residents. Those hit hardest by the new policies will certainly be unhappy, but proponents of the measure say that the number of people forced to pay more will be outweighed by those who benefit. The measure is also supposed to help replace funds that would be derived directly from resident’s pockets, like the proposed $300 per home trash collection fee.

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According to a recent Deutsche Bank report, the following cities, among a few others, offer affordable homes to potential buyers:

Atlanta: With the monthly rent of around 50 per cent more than average after-tax mortgage, Atlanta tops the list of cities for the most affordable housing. Despite the fact that it is now the most affordable city in the US, prices continue to drop.
Orlando: Orland closely follows Atlanta as an affordable housing destination. The delay in a new rail project, which connects the city with Tampa, has compounded its languishing economy. But after the housing market slump, buyers can now take advantage of bottom-level interest rates and low prices for ownership.

Rochester, NY: It was unimaginable a few years ago that New York would be an affordable place to buy homes. Rochester, along with Buffalo and Syracuse, has some of the most affordable real estate in the US.

Cleveland: Ohio’s housing market has been in the doldrums for a couple of years. Home sales increased from January to February by 3.7 per cent. With low prices and interest rates, the region could see increased sales in the months to come. The average price for a single-family home was down 0.2 per cent year-on-year, while condo was down 15.3 per cent. Currently, they cost around 24 per cent less in Cleveland, compared with rental premises.

Tampa, St Petersburg: Florida was one of the most overbuilt states during the housing boom. Given the fact that home prices in and around Tampa-St Petersburg has declined substantially, it is now much more affordable to own than to rent. Government agencies and developers have been promoting downtown Tampa Bay to residential buyers. A number of large projects are underway to attract new buyers.

Las Vegas: Since the real estate bubble bust, Las Vegas, along with other Sun Belt cities such as Miami and Phoenix, has seen very little new construction. The current occupancy rate in Vegas is around 95 per cent. Potential buyers can now get a new house at an affordable price.

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According to the US real estate industry, the commercial real estate market is on the path to recovery. A modest rise in rent has been forecast for the national market in 2011. In 2012, the job market is expected to improve and the real estate market will pick up pace.

Reis, a research company, reported that in the first quarter Washington had the lowest office vacancy rate at 9.2 per cent, followed by New York at 10.7 per cent. On the other hand, Detroit and Phoenix had the highest vacancies at 26.6 per cent. Nationally, vacancies increased from 17.3 per cent a year earlier.

In the first three months of this year, commercial buildings gained a net 4.7 million square feet of occupied space, the second consecutive increase following 11 straight quarters of declines, Reis reported.

In the first quarter, demand for rents by landlords increased to an average $27.66 per square foot from $27.53 in the previous three months and $27.57 a year earlier, Reis said. Effective rents (actual rents paid by tenants) rose to $22.20 per square foot from $22.09 in the fourth quarter. This, analysts say, shows buoyed confidence levels of landlords. Another sign of landlords’ optimism has been borne out by the fact that effective rents stay in 45 out of 75 markets in the last quarter, which is up from 39 in the previous three months.

According to a survey conducted by PricewaterhouseCoopers, investors are showing more confidence about buying commercial property. The report further said signs of recovery are boosting optimism among owners and buyers during 2011. But it pointed out that the pace at which the US economy is improving has been slow and uneven.

The report observed that major demand drivers for the US commercial real estate have reached bottom. The underlying demand for commercial real estate has begun its turnaround. But we will not see substantial price appreciation as long as the slack in supply continues, the report pointed out.

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The real estate market has been struggling along for quite a few years now, with foreclosures and low home prices everywhere. However, the economy is beginning to recover, albeit slowly. A new study from PwC actually points to greater confidence in the real estate market during 2011. Will this be the year of the “big turnaround”? Experts say it’s possible, but don’t bank on it. Even if there is a turnaround, it will be a gradual process. The damage done in the past decade cannot be reversed in just a single year.

One of the most significant signs that the real estate market is going to start gaining ground on a national level is the decrease in jobless claims. More jobs available means more people working. That equates to more people in a financial situation where buying a home is a feasible option. While it might take a few months for the trend to start, experts predict that 2011 will see a new resurgence in home sales, particularly in multi-family properties.

Another factor here is the decrease in capitalization rates. 27 out of 31 markets in the survey by PwC actually showed rate decreases. Industrial real estate is also looking up, though the situation for retail real estate is not quite so good. Consumer spending is the largest factor in retail expansion, and consumers are still unsure about spending too much of their money, with worries about inflation rising. Experts predict that it will be close to the end of 2011 before the retail real estate market picks back up again.

The main point here can be summed up as, “Recovery is coming, it’s just taking its time to get here for many sectors.”

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Given the influx of absentee property owners, it is essential now more than any other time for people looking for a rental home to use the services of a professional residential property management service. The 2008 real estate market crash left many property owners owing more than what the property is worth; it is now common to hear of investment property owners choosing to walk away from their investment and stop paying the mortgage.

There are numerous stories of responsible tenants who maintain the property and pay rent on time being served with eviction papers because the property owner stopped paying the mortgage and the lender foreclosed on the property. Just as residential property management agencies thoroughly screen the background and credit histories of prospective tenants, they do the same with the owners of the properties. This service provides tenants peace of mind there will not be any unpleasant surprise visitors with eviction papers.

In addition to the peace of mind rental agents provide, since property management agencies handle multiple properties they are able to offer perks such as lawn and yard maintenance for no additional charges. Most property management agencies also offer around the clock call services for maintenance issues. They also contract with licensed and bonded tradesmen familiar with the housing code so tenants are assured that repairs will be done safely and correctly. It is common for a rental agency to have one person dedicated to providing services for a particular property, so the tenant has someone who is familiar and local to assist with any issues regarding the home. For families relocating to many areas, rental agents also provide guidance about schools and neighborhoods. In the ever-changing housing market, a professional residential property management is a necessity for a tenant to feel safe and secure in their rental home,

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Fears of analysts were confirmed when Case Shiller Index was released last week. As expected by them the decline in prices is weakening home buyers. According to Bloomberg, residential real estate values dropped the most in January in more than a year, contributing to the risk that US home sales would keep slowing further. The Standard & Poor’s – Shiller Index of property values in 20 US cities fell 3.1 per cent since January 2010, which is by far the biggest year-over-year drop since December 2009.

Analysts talk about the rising number of foreclosures, which may put additional pressure on real estate prices in the coming months. Besides, a further drop in home value may dissuade potential home buyers. This, in turn, will adversely affect construction and consumer spending.

According National Association of Realtors, foreclosure filings are likely to grow by 20 per cent in 2011. Around 95 per cent of homes on the market in the US are existing homes, whose prices decreased by 5.2 per cent in a year, wiping off all gains made after February 2002. Home prices are now down by 31.4 per cent from their peak, merely 2.2 per cent above the post-bubble bottom in May 2009.

Realizing the seriousness of declining property values, Bank of America has begun a pilot-programe for making reductions to existing mortgages, lowering the face-value of the loan. This has been hailed as a step in the right direction by market watchers, which they say could eliminate negative equity.

The programe will be funded from the California Housing Finance Agency. Many industry experts say that the US government should abandon its attempts at mortgage modification, and establish Federal guidelines for mortgage reductions at the earliest. This, they believe, will help people maintain their homes as well as stabilize the market.

Demand for apartments, say industry observers, will rise as the job market recovers. Currently, supply is tight, with multifamily properties averaging an annualized 112,000 units in 2010, compared with 280,000 units in 2008.

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Home prices are falling throughout the country, but the area around Reno, Nevada seems to have been particularly hard hit, according to sales and pricing information coming out for the final quarter of 2010. The impetus here seems to be directly from short-sale homes, as well as a significant influx of bank-owned homes on the market. The number of properties listed for incredibly low prices is forcing the average price down, as well, and having an effect across the entire real estate scene.

At the end of the fourth quarter of 2010, the average price for a home in Reno-Sparks was about $169,000, a decrease of over $5,000 from what 2009 prices were. The volume of sales also dropped significantly, by almost 17% year over year. What does this mean for the future? While figures for the first quarter of 2011 have not been compiled yet, most area experts think that the trend will continue at least through the end of the year.

Interestingly, new homes have suffered the most in the Reno area (in contrast to other areas of the nation, where new homes sold more). There was actually a decrease of 60% in new home sales between 2009 and 2010. Condominium sales, on the other hand, have been inching upwards, though they have been dropping in value.

However, things might not be as bleak as they seem. Home sales have picked up for 2011, though prices remain depressed (and getting worse). The lower prices are definitely helping to attract buyers, though – a mixture of investment buyers and actual homebuyers. Currently, the most frequently sold home in the Reno area is a single family home, and this market has actually seen growth of 1% thus far this year.

When the real estate market was booming, there was hardly ever an issue with low appraisals. However, many of those were apparently inflated, as has been shown by the subsequent crash in the market. Appraisal standards (and lending standards) are far tighter than they were previously. Because of falling home prices, valuations are coming in lower. It seems that the trend has little to do with the actual practices used by appraisers, and more to do with the state of the market, itself.

Another trend here has been on the part of lenders. As lenders require an appraisal to ensure that the value of the home being sold exceeds the amount of the loan, this is a big part of the situation. Lenders are outsourcing their appraising needs today, and you might find an appraiser from a completely different area appraising homes in another one. This lack of familiarity can lead to low appraisals. Foreclosures are another factor here that plays a large role in determining the value of an appraisal. Most experts think that the situation will continue to worsen, as well, rather than getting better any time soon.