Reno Real Estate Values down by 7%

I’m not talking about sales values or sales volumes, what I’m talking about is the County is reducing property values (taxable value) by 7%.

Assessed property values in Washoe County for 2010 to 2011 could tumble by $2 billion. County officials are lowering assessed property values which are 35% of appraised values by 7%. This is the first year of huge declines since the large Reno boom to bust real estate market. To give you an example of how it will help property owners, if your property taxes are currently about $2200 per year they will go to about $1450 for the upcoming year.

The median price for a home right now is about 183,000  which is 48% less than it was in 2005, I do think  Washoe County is trying to keep up with homeowners in keeping values where they should be.  Josh Wilson County assessor thinks it would be the end of 2010, before we start to see a bottom because of all the loans that were made five years ago, meaning there are a lot of loans that will be resetting this year to higher interest rates and home owners are still underwater on their values

I get the question all time from buyers that when they buy this house will my property taxes go up, the answer is no. In Washoe County taxes get reassessed about every three years, I do think it is good to see the assessor being proactive in reducing property values by 7%. Click here to see how your Reno Real Estate taxes are calculated.

I do agree with Josh Wilson over the next 12 months there are a lot of people still underwater with their loans and they will have to sell for whatever reason. Until these loans get out of our system we are going to have to deal with short sales. Right now the problem is short sales, 40% of them will not close escrow, it will still take 4 to 5 months to  close the escrow if the bank does approve the deal. Short sales are what is driving this market down, sellers don’t care what they price their home at as long as they get an offer, yes it is true 40% of them will not be approved. But if you  ask these $12.00 an hour bank negotiators enough, some of them will get approved and continue to drive the market down. A typical negotiator can be dealing with as many as 1000 files at a time (how much attention do you think your file will get).

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