Oh my, here we go again.

by Joe Salcedo on 4:35 am

Reading North Tahoe Bonanza’s article today:

“The way the national media portrays the housing market in near chaos with neighborhoods in Cleveland being bulldozed to reduce blight and homes in Las Vegas selling for a fraction of the cost to build them…such is not the case for the lakeview subdivision in Incline Village.”

Actually it’s not as bad I thought:

“Higher elevation properties continue to languish on the market and have seen price declines of 30 percent to 40 percent or more. The only types of properties in Incline Village and Crystal Bay that come close to having the staying power and price stability of the lakeview subdivision are homes with good lakeviews in easily accessible locations. All other types of properties have seen overall price declines of greater than 16 percent and in most places closer to 30 percent during the past four years.”

Just for kicks, let’s give the other side (albeit, a darker tone) some voice — Patrick Killelea’s equally reviled and lovedĀ  buying safety rule:

“The only true sign of a bottom is a price low enough so that you could rent out the house and make a profit. Then you’ll know it’s pretty safe to buy for yourself because then rent could cover the mortgage and ownership expenses if necessary, eliminating most of your risk. The basic buying safety rule is to divide annual rent by the purchase price for the house:

annual rent / purchase price = 3% means do not buy, prices are too high
annual rent / purchase price = 6% means borderline
annual rent / purchase price = 9% means ok to buy, prices are reasonable)”

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– Philip Duane Johncock

“I was laid off from the state in November of 2007 due to major budget cuts. We were no longer able to make our house payments as the job market was just beginning to get worse and worse. My agent in San Jose found Joe Salcedo in Reno for me and told me he has a lot of experience in short sales. He priced our home at a very realistic price in relation to the market values at the time. Joe was very professional and before we knew it we had an offer on our home. In September of 2008 our home closed and the bank forgave the difference. A short sale comes off of your credit in a much, much shorter time than a bank foreclosure. We will be forever grateful for the assistance of Joe Salcedo”

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