Reno Market in Feeding Frenzy

[IMGCAP(1)]

IRVINE, CA-A number of cities across the country have seen an increase in single-family building permits and foreclosure starts over the past year, even though the number of foreclosure starts is down significantly across the country overall, according to locally based RealtyTrac, as GlobeSt.com reported last week. The development is good news for a market like Reno, in which properties can't go on the market fast enough for buyers to snatch them up.

“We are currently experiencing a feeding frenzy in the Reno area for inventory,” said Craig King, COO of Chase International brokerage, covering the Lake Tahoe and Reno markets, in a prepared statement. “We are particularly feeling the heat for properties under $350,000. Those properties are receiving multiple offers within days of hitting the market, so the builder and foreclosure inventory will be a blessing, but far from an answer to the inventory shortage here.”

According to RealtyTrac, cities with the most single-family building permits in the first quarter were Houston, Oklahoma City, Austin, El Paso and Fort Worth. Of these top five, all except for Austin posted decreasing foreclosure starts during the same time period; Austin foreclosure starts increased 19%.

Cities with the most foreclosure starts in the first quarter were Miami, Las Vegas, Chicago, Fort Lauderdale and Orlando, with Las Vegas, Fort Lauderdale and Orlando posting increases in foreclosure starts from a year ago. All five cities posted increases in single-family building permits from a year ago.

Cities where both single-family building permits and foreclosure starts increased at least 10% from a year ago in the first quarter included Las Vegas, Seattle, Reno, Boca Raton and Raleigh, NC. On the other hand, cities where both single-family building permits and foreclosure starts decreased from a year ago in the first quarter included San Antonio, Albuquerque, Fresno, Bakersfield and Greenboro, NC.

[IMGCAP(2)]

[IMGCAP(3)]