Reno Foreclosure Statistics

Posted By on March 15, 2024

Reno Foreclosure Statistics 2024-2023

  1. Distressed properties in Reno are selling for 16.2% less than non-distressed homes.
  2. Reno currently has 772 foreclosures for sale, with a median listing price of $549K.
  3. Reno observed a 34-property default increment, marking an 89% rise year-over-year and a 55% increase from the previous month.
  4. The third quarter saw Nevada as the sixth highest in the nation for foreclosure rates, with 1,241 housing units in default out of 1.28 million, representing less than 0.1%.
  5. In contrast, in 2007, Nevada’s foreclosure rate led the nation at 3.4%.
  6. Current foreclosures remain significantly low historically, according to Las Vegas Realtors.
  7. A notable 0.1% of Las Vegas‘s property sales in September were short sales or foreclosures, showing a decrease over the years from 5.2% five years ago.
  8. Las Vegas homes’ median price was $450,000 last month, up 10.7% year-over-year.
  9. In the third quarter, 1,094 out of 917,656 Las Vegas Valley housing units faced foreclosure filings, a 17% increase from the last quarter.
  10. Reno’s home prices dropped to levels seen a year prior, with the median price in September at $535,000, a 5.3% decrease from August.

Key UT Foreclosure Trends 2024-2023

  • Reno had 75 housing units with foreclosure filings, an 88% annual increase but a 53% decrease from the previous quarter.
  • California led the U.S. in foreclosure starts in the third quarter, with 7,368 starts.
  • The U.S. saw 92,634 properties with foreclosure filings in the third quarter, a 104% jump year-over-year.
  • September 2022 had 31,836 U.S. properties with foreclosure filings, a 62% increase from the previous year.
  • The national shortage of housing units makes a significant foreclosure spike unlikely.
  • The Reno housing market has experienced substantial equity growth, outpacing the national average over the past five years.
  • Homes bought in Reno a year ago appreciated by an average of $43,752, compared to the national average of $15,753.
  • Three-year Reno home purchases saw an average appreciation of $128,397, significantly higher than the national average of $53,565.
  • Five-year Reno home purchases appreciated by an average of $100,885, doubling the national average.
  • The Reno job market has added over 13,300 jobs in the last 36 months.
  • Reno’s current unemployment rate sits just below 7%, showing an improvement from 8.4% a year ago.
  • The city’s job growth rate stands at 3.3%, above the national average.

First-time home buyers in Reno and Las Vegas are faced with a challenging market. The increase in foreclosure filings and the competitive nature of the housing market, particularly in Las Vegas, might intimidate some buyers. Yet, the presence of foreclosed properties could also represent a unique opportunity to enter the housing market at a lower price point, provided buyers are prepared to navigate the complexities of purchasing a foreclosed property. Additionally, the equity growth observed in Reno over the past years suggests that buying a home in this region could be a good long-term investment​​​​.

  • Reno has seen a surge in new construction permits, over 38% higher than the long-term average.
  • Foreclosure rates in Reno have decreased significantly from their peak in 2010 when they neared 10%.
  • Around 720 homes in Reno are in some stage of foreclosure, marking a 44% increase from the previous year.
  • The Reno real estate market is characterized by its minimal walkability, with a Walk Score of 40.
  • In the past month, 169 homes were sold in Reno, alongside 139 condos, 65 townhouses, and 14 multi-family units.
  • The median listing prices for pre-foreclosure homes in Reno range from $65,201 to $634,300, reflecting diverse property values.
  • Properties in foreclosure in Reno include a wide range of bedroom and bathroom configurations, from 2-bed, 1-bath to 6-bed, 6-bath homes.
  • The square footage of Reno homes in pre-foreclosure varies significantly, from 886 sq ft to over 5,364 sq ft.

More about Reno Nevada Foreclosure Stats and Facts

For property investors, the current trends in foreclosure rates and home price appreciation in Reno and Las Vegas offer a mixed bag of opportunities and challenges. The significant increase in foreclosure filings and the substantial equity growth in Reno’s housing market suggest that there are opportunities to acquire properties at below-market prices, which could be turned around for a profit. However, the rising home prices, especially in Las Vegas, where the median price reached $450,000, indicate a competitive market where investors must be strategic about their purchases​​​​.

House flippers, in particular, might find Reno an attractive market due to the fluctuations in home prices and the availability of foreclosed properties. The decline in home prices in Reno, with the median price dropping to $535,000 from previous highs, could allow flippers to buy low, renovate, and sell high as the market stabilizes or improves. However, the success of such ventures would heavily depend on the flipper’s ability to manage renovation costs and navigate the competitive landscape​​​​.

 

Potential home sellers in both cities must carefully consider the current market conditions. In Las Vegas, where home prices have significantly increased, sellers might find it an opportune time to list their properties to capitalize on the current demand. In contrast, sellers in Reno, where prices have declined, might weigh the benefits of waiting for the market to rebound versus selling now, especially if they have gained substantial home equity over time​​​​.

 

Cited Sources:

 

  • https://www.realtytrac.com/resources/reno-real-estate-market-shows-year-over-year-growth-despite-monthly-fluctuations-january-2024-report/
  • https://thisisreno.com/2022/10/nevada-second-in-september-foreclosure-filings/
  • https://www.reviewjournal.com/business/housing/nevada-leads-nation-in-home-foreclosures-report-says-2907053/
  • https://www.rgj.com/story/money/reno-rebirth/2015/11/09/what-happened-reno-shadow-inventory-market-real-estate/75185288/
  • https://www.realtytrac.com/reno-nv/foreclosure/
  • https://www.reviewjournal.com/news/foreclosure-spike-hits-reno-area/
  • https://thenevadaindependent.com/article/fact-brief-does-nevada-have-a-higher-foreclosure-rate-than-any-other-state-in-the-nation-1