New home building permits rise in Reno-Sparks

I am sure you have heard the sound of hammering and signs of new builders. A great sign for the Biggest Little City.  Behind the scenes, The city and builders have been overwhelmed with the demand for permits and a need for more construction crew. Great article to consider below by RealtyTrac. 

And, if you have any Real Estate questions, call the Agent who understands the Dream of the White Picket Fence, Call Tayona Tate!  

New home building permits rise in Reno-Sparks

During the first quarter of 2013, Reno and Sparks saw a triple-digit percentage increase in new home building permits and foreclosure starts, according to a report released by national foreclosure tracker RealtyTrac.

The area is suffering from limited inventory of existing homes for sale. It is driving up the median sales prices as the buyer demand continues to grow. More new homes and foreclosed properties in the sales market might alleviate the pressure.

“It just keeps getting better, but it’s not out-of-control (growth),” said Mike Dillon, executive director of the Builders Association of Northern Nevada.

During the boom years, about 5,000 permits were pulled a year by new home builders in Washoe County. A stable growth would be considered about 2,500 permits a year for the area, Dillon said.

The strong buyer demand has increased builders’ confidence, and Dillon said he expects about 1,000 new homes will be built this year. During the recession, about 400 permits a year were pulled.

Builders still are being cautious, he said.

During the first quarter of 2013, 154 single-family home building permits were pulled in Reno, according to U.S. Department of Housing and Urban Development data.

It was a 133 percent increase from 66 in the same time period last year.

Foreclosure starts, the first step in the bank repossession, were up 141 percent compared with 166 in 2012. Reno recorded 400 notices of defaults in the first quarter, according to RealtyTrac.

In Sparks, 76 building permits were pulled last quarter, up 130 percent. Foreclosure starts also were up 159 percent to 171.

Foreclosure activity has been picking up since the beginning of the year in Nevada as banks have become more confident in meeting the requirements set out by Assembly Bill 284 and the National Mortgage Settlement.

AB284, which went into effect in October 2011, virtually stalled all foreclosures in the state because it required stricter documentation during the process.

Those homes starting the foreclosure process might not reach the market until late next year because the process has been extended to more than 14 months, real estate experts said.