Reno Area Housing sales up as prices stay flat
Reno Gazette Journal • July 22, 2008

New and existing home sales increased 64.2 percent from January to March, led by a 102.5 percent surge in new home sales, according to the latest report from the Center for Regional Studies at the University of Nevada, Reno.

The median price for new and existing homes stayed relatively flat in the second quarter, up 0.3 percent to $301,000.

In month-over-month numbers, June's new and existing home sales were up 8.5 percent over May, boosted by a 14.1 percent jump in existing home sales. The median price for new and existing homes in June was $306,571, a 2.2 percent increase over May.

The quarterly numbers show that the market is moving in the right direction, although the rate of recovery will likely be slow, said Brian Kaiser, a housing and real estate analyst with the regional studies center. The increase in existing home sales in June means buyers are taking advantage of the glut of foreclosures in the market, Kaiser said.

But although the month-to-month and quarter-to-quarter numbers are encouraging, they only tell part of the story, Kaiser said.

"These numbers have been very volatile lately, so I'd want to see several months of consistently level or positive numbers before declaring an end to the market declines," Kaiser said. "Looking at the year-on-year numbers, June's sales are still far below where they were a year ago and pricing remains a concern."

Compared with April-June 2007, sales of new and existing homes are down 42.4 percent, according to the report. June sales of new and existing homes are also down compared with the same period last year by 35.9 percent.

Monthly sales of new and existing condominiums also took a 47 percent dive in June following an impressive 95.3 percent jump in new condo sales in May. New and existing condo sales are still up 31.5 percent over the previous quarter but are down 11.7 percent from the same period last year.

Median prices for new and existing homes are down year-to-year for both the second quarter and June. Compared with 2007, second quarter median home prices dropped 8.8 percent while June median home prices dropped 9.8 percent.

The Reno/Sparks Association of Realtors also released its own housing report, which is based on numbers from the Multiple Listing Service. The RSAR report is limited to existing stick-built, single-family dwellings and does not track sales of condos, townhomes, manufactured homes, modular homes or new properties.

According to the RSAR report, 996 existing homes sold in Washoe County in the second quarter, up 41 percent from the first quarter and down 1 percent from 2007.

Washoe County's 363 existing home sales in June were a 14 percent increase over May and a 12 percent increase from June 2007 -- the first year-to-year increase in more than two years, said Wayne Capurro, president of the Reno/Sparks Association of Realtors. The county also saw an 8 percent decrease in the second quarter for the number of active listings on the Multiple Listing Service compared with the same period last year.

The real test will be how the numbers compare starting around July or August, which is when the impact of the subprime collapse in early 2007 really started to hit the market, Capurro said. As long as the trend of monthly increases continues, then comparative numbers should be more favorable toward the end of the year, Capurro said. But concerns remain.

"The subprime loans have basically been foreclosed on and discounted by the lending institutions, but you're seeing problems in the prime market now because of how much property values have declined," Capurro said. "The good news is that notices of default have decreased for two months in a row. They're still pretty high. But the decrease is a positive trend."

Reno home market called fairly valued
Reno Gazette Journal • June 5, 2008

A new report is increasing optimism in the housing market after it designated Reno-area prices as “fairly valued” for the first time since 2004.

The median price for Reno-area homes was $251,500, based on the Global Insight/National City house value report for the first quarter of 2008, 0.2 percent below what the report considers absolute fair value. The last time Reno area house prices were considered fair value was in 2004.

Being classified as a fairly valued market is a positive sign, said Wayne Capurro, president of the Reno/Sparks Association of Realtors. “We’re not the most undervalued market, but it’s better than being an overvalued market because it brings investors from the outside and increases the willingness of people who live here to buy a new home,” Capurro said.

In January-March of 2005, home values in the Reno area were considered 29.4 percent overvalued. In 2006, homes were deemed 40.6 percent overvalued in the first quarter. In 2007, that figure was 25.3 percent. Nationally, first-quarter home prices decreased for the third straight period as price declines hit 262 of the 330 metro areas included in the report. Prices are now down 3.1 percent compared to the same period last year, with price declines accelerating to a 6.7 percent annualized rate.

Reno and Las Vegas were included in the report’s “Bottom 50” list of areas that saw the steepest declines in home prices. Only eight metropolitan areas in the report were considered overvalued, down from the 2006 peak of 53 overvalued homes. Fewer high-priced home sales, combined with an abundance of foreclosure properties being sold at discounted prices, are responsible for pushing prices down nationwide, the report said.

The trend holds true in the Reno area where short sales — a home sale where banks agree to a reduced payoff from the original borrower — and bank-owned properties make up about 40 percent of listings but account for two-thirds of the houses going into escrow, Capurro said. Given the number of short sales and bank-owned properties in the market, Capurro predicts median home prices to also drop in the next month or two, which is not necessarily a bad thing.

California home sales perk up
Reno Gazette Journal • May 20, 2008

California home sales surged in April, with the Sacramento area seeing its first year-over-year sales increase in more than three years.

The trend could bode well for Northern Nevada and signal a potential turnaround for the region, said Wayne Capurro, president of the Reno/Sparks Association of Realtors.

"(The Sacramento numbers are) consistent with what we're seeing here," Capurro said. "We're still seeing median price declines but we're also seeing skyrocketing affordability at the same time, and I believe buyers are finally coming off the sidelines and buying. If this continues, the prediction by the National Association of Realtors ... for a rebound sometime in the second half of the year is going to come true."

Sacramento County home sales rose 26.3 percent in April compared to the same period last year, the Sacramento Bee reported. It was the first time that year-over-year sales in the county saw an increase since March 2005, according to figures from DataQuick Information Systems.

Although Sacramento median home prices in April were down 32 percent to $232,000 compared to a year ago, homes priced below $200,000 made up 35.3 percent of sales in the county and West Sacramento.

Capurro cited sales for the "Reno 100," a classification that includes most of the Reno-Sparks city limits but does not include areas such as Pleasant Valley, Stead and Lemmon Valley. The Reno 100 saw sales top 300 for April, the first time it has done so in the last few years, Capurro said. April home sales have yet to be released for Washoe County.

"I'm always reluctant to start waving the victory flag," Capurro said. "We've certainly come down significantly for the first half of the year. We could go up 5 (percent) to 10 percent and still finish the year negative. But I really think we're turning the corner."

California's Yuba County also posted impressive year-over-year numbers, beating April 2007 by 23.3 percent. Sutter County posted year-over-year gains of 1.1 percent for April.

Yolo County and Placer County saw April year-over-year declines of 1.1 percent and 8.5 percent respectively. In Southern California, April home sales dropped 19 percent compared with the same period last year. But home sales were up 22 percent over March, fueled by bargain hunters buying homes at the lower end of the market, according to DataQuick

Washoe County - A very strong buyers' market
Reno Gazette Journal
April 15, 2008

Nevada's rate of foreclosures led the nation in March, with Washoe County reporting the third highest rate of foreclosures in the state, according to a national report released today.

It is the 15th straight month that Nevada's foreclosure rate was No. 1 in the U.S. Nevada had a foreclosure rate of 1 in 139 households, 3.9 times the national average. The rate is a 24 percent jump from last month and nearly 62 percent higher than the foreclosure rate in March 2007. The numbers were released by Irvine, Calif.-based RealtyTrac, which tracks foreclosure data nationwide.

Clark County led the state again with foreclosure filings on 6,783 properties, a rate of 1 in 111 households. Churchill County had the second highest foreclosure rate of 1 in 259 households. Next was Washoe County with a rate of 1 in 277 households.

Clark County sharply skews the state numbers, said Wayne Capurro, president of the Reno/Sparks Association of Realtors.

"The rate is still high in Washoe County, so I don't want to minimize that," Capurro said. "But Nevada wouldn't be ranked number one in foreclosures if it weren't for Clark County."

Washoe County has the same foreclosure rate as the state of Georgia, which is sixth in the nation. Washoe also had 630 total properties with foreclosure filings in March, up 31 percent from 480 in February and up 61 percent from 392 in March 2007. Capurro blamed foreclosures entering the market and boosting supply as the main reason the area has yet to start a recovery.

In the Reno-Sparks area, there were 4,197 homes on the market as of Monday, said Ken Wiseman, broker-owner of Reno Rancho Realty. With 74 homes sold so far this April, it will take some time to whittle down the area's housing inventory, Wiseman said.

"Supply is the telltale sign," Wiseman said. "Unless we see some sort of change, I just don't see things turning around within the next three months."

One positive sign is that the number of homes in the Reno-Sparks market has dropped from an 18-month supply to a 14-month supply, Capurro said. That is still twice as high as the typical six-month supply in a normal market but is a step in the right direction, Capurro said.

Capurro and Wiseman agreed that home prices should stabilize within six months. Price slashing by banks desperate to clear foreclosed properties from their books has significantly lowered median home prices. But financial institutions can only lower prices for so long, Wiseman said.

"If banks drop prices by 5 percent each month, then you'll theoretically reach a price of zero at one point," Wiseman said. "Well, banks just can't give these houses away, especially now that you're seeing homes priced at $180,000. We're going to hit bottom here eventually, which we're already getting down to at the lower end of the market."

For buyers priced out of the market during the peak of the housing boom, the housing downturn means homes have become affordable again, Wiseman said. Although it may take five years before home prices reach the peak seen during the housing boom, prices will likely start seeing an uptick later this year, Capurro said. That makes the next six months the perfect buying opportunity for people looking into a new home.

"We have a long way to go from a 14-month supply to a six-month supply of homes," Capurro said. "But that's why the best buying opportunities are going to take place in the next six months. It's a tragedy for people losing their homes. But it also makes it a very strong buyers' market.

Reno-area's bright spots are there, economist says
Reno Gazette Journal
January 31, 2008

Optimism in the face of a struggling economy in Northern Nevada permeated the stage Wednesday at the Directions 2008 forum in Reno.

"The real estate market got a little carried away ... (but) Reno's outlook is very positive. Just not being Las Vegas is a major advantage," keynote speaker and Utah economist Jeff Thredgold told an audience of 850 business leaders.

Other speakers also considered the economy, including housing, relatively strong compared to key U.S. regions.

"Nevada is much better than California or Florida," said Eugenio Aleman, senior economist at Wells Fargo & Co. "We are not as bad as other places. The opportunities are very large. The world is not falling apart. Things are going to come back."

Tom Cargill, economist at the University of Nevada, Reno, said the Reno area's diversification away from its traditional gaming base adds more stability against economic bumps.

"(Gaming) will never disappear, but the more diversified we are, the better off we are economically and politically," he said. "We're in much better shape now ... we have better shock absorbers."

Robert Barone, managing partner at Ancora West Advisors, voiced objections to media reports that he said help fuel the housing crisis, and he was met with applause from the audience.

Cargill characterized media coverage of the economy as "almost a feeding frenzy out there," adding, "The economy is solid."

Thredgold cited a 10-year cycle of events, notably the 1987 stock market crash and the 1997 Asian financial crisis.

But he said population growth in Northern Nevada, with an attractive tax structure, mild climate and outdoor recreational opportunities, will help keep the region viable.

"With in-migration, it has great opportunity for housing," he said.

Check out the cost difference Reno/Sparks to retire
Reno Gazette Journal
December 16, 2007

Recent estimates of what kind of money you're going to need to retire at 65 are pretty scary and not for the faint of heart -- try more than half a million dollars or more than 10 times your final annual salary.

The main reason retirement costs so much is kind of ironic if you think of all of those baby boomers who are trying so hard to stay in shape and keep active. It's because they're living so much longer that they will spend more time in retirement than any previous generation and, most likely, outlive their savings.

According to statistics from the Center for Disease Control, the average 65-year-old can now expect to live another 18 years. In fact, American seniors are living 50 percent longer than they were in the 1930s when Social Security set 65 as the benchmark retirement age.

And then there's always the fact that you've got all that free time to fill, and that probably means spending money on new hobbies and travel, not to mention just dealing with the cost of living in some of the more popular retirement areas.

The cost of living in Miami is 2.6 percent higher than in Reno-Sparks, a negative $3,256 net change in disposable income

The cost of living in Phoenix is 3.3 percent higher, a negative $3,104 net change in disposable income

The cost of living in San Diego is 48.3 percent higher, a negative $16,432 net change in disposable income.

If you are beginning to rethink your first choice, a recent study shows that retirees are looking at the New West and South as viable retirement options.

Questions you should ask yourself before looking at retirement locations include how much you want to spend for a home, age demographics, proximity to health care, available continuing education, arts and cultural events as well as the kind of lifestyle you like -- city, country or something in between.

The cost of living in Bellingham, Wash. is 7.1 percent higher than this area, with a median cost of housing in the third quarter of 2007 shown at $163,000.

Located between Seattle and Vancouver, Bellingham has seashore, forests and mountains, but you might want to consider the weather -- it has more than 93 days of rain a year.

Charleston, S.C. is charming as all get-out, but if you're expecting the cost of living to be lower than in Reno-Sparks, you'd be wrong. It's 7 percent higher, even though the median cost of a home there is $213,000. And, you'd better plan on sweating, a lot.

Gainesville, Fla., located about 60 miles from the Atlantic coast, has a 10.7 percent lower cost of living than Reno, with the median price of a home set at $206,600. There are a lot of quality health care facilities, but you'd better like a younger crowd because the University of Florida is located there and the median age of the area is 29. Be sure to bring the mosquito repellent.

There's lots of culture, golfing, sand and surf in Sarasota, Fla., located on the Gulf Coast, and there also are a lot of "snowbirds" who live there in the winter, causing lots of traffic headaches. The cost of living there is 21.2 percent higher than in the Reno-Sparks area, but the median cost of a home is $287,400, lower than Reno's $317,300.

If you're more than 10 years away from retirement, it's hard to say what kind of costs you'll be looking at, but Robert Brokamp, editor of The Motley Fool's "Rule Your Retirement" newsletter service, advises that if you're looking at retiring in the near future, you should create a retirement budget.

Once you know how much retirement will cost, you'll get a better idea of where you'll be spending those Golden Years.

Outdoor mecca in the making
RENO GAZETTE-JOURNAL
October 31, 2007

The Reno finance director estimates the Cabela's outfitters store near Verdi will have an economic impact of about $324 million during its first year, according to a report released Tuesday. Mayor Bob Cashell said the report was conservative and that the 125,000-square-foot store could bring larger dividends.

The store will attract about 2.5 million visitors during its first year, according to Andrew Green's report. A Cabela's spokesman said Tuesday that the store could attract up to 3 million people during its first year. "I think that's conservative," Cashell said of Green's report. "From the numbers I've seen on the calculations of visitors and talking to the people in the city, it could be more."

The report, done by the Meridian Business Advisors, factored in expenditures for construction, jobs, visitors, store operations and payroll. The store will generate 720 new jobs, according to the report, noting that Cabela's will have about 250 employees. A Cabela's spokesman said Tuesday 95 percent of the store's employees were hired locally.

"It is significant," said Thomas Cargill, an economics professor at the University of Nevada, Reno. "It is kind of interesting that Reno already is growing north and south, but now, it is beginning to grow in the other two directions. "It is going off like spokes in a wheel in all directions." Others see Cabela's as a cog in making the Reno-Tahoe area a mecca for outdoor enthusiasts.

Competition heating up. The two-story 248,000-square-foot Scheels sporting goods store is expected to open near the Sparks Marina in October 2008. Scheels will feature a 65-foot Ferris wheel, electronic trolly from store front to parking lot and two massive aquariums with almost 40 species of fish.

A Bass Pro Shops Outdoor World Superstore is part of the plan for a Station Casino entertainment destination park near the intersection of U.S. 395 and Mount Rose Highway. The combination should become a magnet for outdoor enthusiasts and help draw conventions, said a Reno-Sparks Convention & Visitors Authority official.

"The model of someone going in and buying a fly rod or snowshoes and saying, 'I don't want to wait until I get home, I'm going up to the mountain or down to the river and use this today,' that is what we are trying to capture," said Michael Thomas, RSCVA marketing director. "Having amenities like Cabela's and Sheels and hopefully Bass Pro, that doesn't exist in other destinations," Thomas said.

A spokesman for Cabela's said the competition with Sheels and Bass Pro was friendly. "Everyone in Nevada knows what kind of outdoor opportunities exist in this state," John Castillo said. "It is really a sportsman's and sportswoman's paradise. There are so many great hunting and fishing opportunities, backpacking, too. So it is no coincidence that we are all coming here at the same time."

Almost 90 percent of the visitors to Cabela's will come from outside of Nevada, according to the report. The Reno Cabela's is the only Cabela's in California, Nevada or Oregon, a company spokesman said. Cabela's estimates that at least half of its customers will drive at least 100 miles to get to the store, calling it a regional tourist attraction.

Northern Nevada's real estate situation less dire than nationwide picture
Reno Gazette Journal
October 21, 2007

"Worsening national housing crisis" -- the phrase, or words to this effect, seems to have become a daily litany in the news, as a hoped-for 2007 turnaround in real estate has not appeared. However, the nationwide situation does not quite match the local market's slowdown, according to spokespeople for two of the area's largest real estate professional groups.

"There are many parts of the country that have seen a much more severe downturn than we have in Northern Nevada," said Missy Hinton, director of communications and public relations for the Builders Association of Northern Nevada. Nor does the fact Nevada's foreclosure rate -- one for every 185 homes, according to real estate Web site RealtyTrac -- mean hordes of homeowners around here soon will be walking away from their houses.

"I think one of the biggest misconceptions is there's this big threat of foreclosure," said Dennis Wilson, president of the Reno-Sparks Association of Realtors and owner of Best Properties. "I ran the numbers, and in Northern Nevada, we're on par for where we were in 2000," he said. Less than one-half of 1 percent of homes in Northern Nevada have been foreclosed on in 2007, even though there are 32 percent more single-family homes in the area than there were seven years ago -- 169,000 compared to 128,000 at the beginning of the decade -- Wilson said.

Also, the majority of Nevada's high number of foreclosures is in the southern part of the state. Las Vegas, for example, logged one foreclosure filing for every 150 homes, RealtyTrac said earlier this month. Of course, the local market has not turned out the way people hoped it would be in January, when local market watchers were predicting a possible late spring-early summer turnaround.

"Although Northern Nevada continues to experience less of a downturn than other parts of the country, many felt that by the end of the third quarter we would be heading toward recovery instead of struggling with the housing slump," Hinton said. "But at the time, the 'perfect storm' of hangover inventory, a disproportionate number of non-standard loans and falling house values was brewing."

A few factors have contributed to this area's softer downswing, both Wilson and Hinton said. Foremost among these factors: a still-healthy economy that, among other things, is bolstered by an unemployment level of 4.6 percent in Washoe County and a continuing influx of both new residents and new businesses.

And while mortgage lenders have tightened their standards and have eliminated some of their most-risky mortgage programs, buyers with good financial prospects still can get the loans they need.

"You still can get 100 percent financing if you have a good job and good credit," Wilson said.

True, many homeowners worry about the value of their homes, even if they are not troubled by their mortgage payments. Wilson's advice to this group is simply to wait out the slump. "Unless you're forced to sell right now, there's nothing you've really 'lost,'" Wilson said. "If you bought your house three of four years ago, it's worth more than it was; if you bought it less than three years ago, it may be worth less than it was.

"If your home is in the second category, sit tight, the market will turn around."

Casino construction a booming business
RENO GAZETTE-JOURNAL
August 26, 2007

The building trades have been making a killing in many Reno-Tahoe casino resorts. Armies of carpenters, electricians and other hard-hat workers have seemingly joined the gaming work force, signaling a big transformation in the Reno-Tahoe resort industry. Faced with the growing threat of tribal gaming in California and the planned expansion of neighborhood casinos in Reno and Sparks, many of Washoe County's major properties are pouring millions of dollars into expansion and modernization.

Combined, Washoe County gaming properties are spending or planning to spend almost $800 million in upgrades and expansions in the next year, according research by the Reno-Sparks Convention and Visitors Authority and Reno Gazette-Journal. Those numbers, however, don't reflect recently completed renovations of properties such as the Eldorado and Sands Regency, according to the RSCVA. "It is imperative (to reinvest) if you want to stay competitive with other regions, and I'm talking about all of our region, which includes Lake Tahoe, Reno and Sparks," said John Farahi, chief executive officer of the Atlantis Casino Resort Spa.

The recent flat gaming win totals for Washoe County, plus the in-state and out-of-state competition has proven to Northern Nevada gaming moguls that they must improve or perish, experts said. "We are in a situation where competition is bringing about contraction in the market," said gaming expert Bill Eadingtion, noting that Reno has lost about a third of its gaming market since the rise of tribal casinos in 2000. "For the future of tourism in Reno, it is going to have to transition, become more attractive," said Eadington, director of the Institute to Study Gambling and Commercial Gaming at the University of Nevada. "Downtown Reno has become more attractive, but there are fewer people to see it than there used to be."

The Peppermill Hotel Casino in south Reno is currently immersed in the city's largest expansion, a $400 million venture that includes the construction of a 600-room, all-suite hotel tower, new pools, shops, restaurants, convention space and a sports book. The new tower will bring the resort's room count to more than 1,600 and clear-span convention center of 62,000 square feet will more than double the property's existing meeting space. The Peppermill's chief rival in south Reno, Atlantis Casino Resort Spa, is investing $50 million in an expansion that will include renovation of rooms, new restaurants and a larger casino area. Not included in the $50 million price tag are construction costs on a new skywalk that will connect the Atlantis to the Reno-Sparks Convention Center.

Boomtown Reno, in anticipation of the nearby 39-acre Cabela's outdoor superstore project, will invest more than $80 million in upgrades. Boomtown will spend $20 million for a new truckstop area, $12 million to modernize all 318 rooms and suites plus an estimated $50 million for a casino expansion and renovation. "We are a little bit behind the times, to be honest with you," Boomtown General Manager Jack Fisher said. "We've been focused on growing our company (Pinnacle Entertainment, PNK) and have not really focused on the Reno property."

Downtown, the Silver Legacy is investing $12 million into a trendy nightclub for the young and affluent, plus reinventing itself with new bars, room remodelings and 400 new gaming machines. Next door, Circus Circus Reno plans a $5 million gussy-up for its hotel rooms and suites in its north tower. The project includes construction of the resort's first-ever swimming pool that will offer panoramic views of the city and mountains, as it is perched near the third-story Sierra Street sky bridge.

Not to be outdone, the Grand Sierra Resort, Reno's largest gaming property, plans to build the nation's largest indoor water park and a 48-story condo tower as part of what perhaps is the area's most ambitious long-range development plan. After buying the property more than a year ago, the Grand Sierra already has spent about $90 million in upgrades and improvements, according to the RSCVA. "I think we are going to have a race to see who is the best," said Tom Schrade, president and CEO of the Grand Sierra. "We came here looking to build a world-class destination resort, Schrade said. "The way we are perceiving this property is in lockstep with city fathers who have talked about re-inventing Reno as America's adventure place."

Over at John Ascuaga's Nugget in Sparks, a $12 million overhaul of all the rooms and suites in the East Tower is scheduled for October. A multi-million project to revamp the Nugget's older casino area and redo the frontage that sits next to Victorian Square will begin when the East Tower overhaul is complete. "We have lived here for 50 years," Nugget CEO Michonne Ascuaga said. "We come to work every day, and we don't want to work for some schlop outfit. We take pride in this building. We want to have a shiny car. We want to look good and we want to be proud of this property."

The Cal Neva Resort Spa and Casino at North Lake Tahoe, once owned by Frank Sinatra, is preparing for a $60 to $70 million restoration that includes a 10,000-foot square foot spa, according to the RSCVA.

The Reno-Tahoe International Airport has leased land next to the airport for a six-story, 127-room, all-suite Hyatt Place hotel. The $15 million property is scheduled for completion in spring 2008, according to the RSCVA. The investments bode well for Reno's future, casino executives said. "Obviously, when people are pouring this kind of money into their property, they are doing it with the anticipation of normal and customary returns on their investments," said Gary Carano, general manager of the Silver Legacy Resort Casino. "So all in all, Reno will remain a good bet."

The investments in the Atlantis and the Peppermill are partially fueled by the rivalry of the two properties, experts said. "It is almost impossible to say Peppermill without saying Atlantis or to say Atlantis without saying Peppermill," Reno gaming analyst Ken Adams said. "Pretty much over the last few years, when one of them finishes an expansion, the other one starts one," Adams said. "One isn't spending $100 million just because the other one did, but they certainly look at what the other has done. And to stay competitive or to beat them they'll say, 'I need to do something different or I need to do something new.'"

Yet, a major competitor looms in the future, experts said. Station Casinos of Las Vegas plans to build two major properties in south Reno within the next four years. One would stand near the Atlantis and the Reno-Sparks Convention Center. It would include 200 to 500 rooms, a 60,000-square foot casino, dining and convention facilities. More forboding could be the Station resort near the junction of Mount Rose Highway and U.S. 395. It's billed as a entertainment destination with hotel rooms, dining, theater, retail -- plus a Bass Pro Shops Outdoor World Superstore. "Inviting them to come to Reno is like inviting the Yankees to come and play the Reno Silver Sox," Eadington said. "They are a very, very good company, arguably the best local hotel casino operator in the world."

Peppermill's expansion, which accounts for almost half of of the total renovation money being spent in Washoe, might have something to do with Station's plans, Eadington said. "This is only supposition on my part but particularly, the Peppermill was motivated to undertake their $300 or $400 million expansion when they did as a pre-emptive strike against Station coming in," Eadington said.

The Peppermill would have expanded even if Station was not coming to Reno, said Bill Hughes, the Peppermill's director of marketing operations. "Our owners have always had a strong commitment to the Reno market," Hughes said. "It has always been their intent to reinvest back into this market. Reno is known as a get-away vacation place, and we are trying to position ourselves to attract more people who want a nice resort experience." Farahi welcomes Station to south Reno but warns that the investment must be sizable to be effective.

"The market has been going south and the properties in town have been putting in a lot of money to upgrade their facilities," Farahi said. "So, for newcomers, the amount of investment it would take to compete with the rest of us would be about $750 million." If Station comes to Reno in a big way, it could change the balance of power in the Reno-Sparks market, Farahi said.

"Today, most of the gaming revenue is being generated in downtown Reno," Farahi said. "But if Station builds down here, too, this area would become the focal point of Northern Nevada and would create a critical mass that would then be the center of entertainment activity," Farahi said. "We know these concepts from Las Vegas," he added. "They build right next to each other, and they still do even better." Station officials would not say how much they plan to invest in each property and no ground-breaking dates have been set.

Station's property near the Mount Rose Highway is expected to be similar in quality to their Red Rock Casino Resort & Spa in Las Vegas. "Perhaps with the exception of the Bellagio and the Wynn, you could argue that it (Red Rock) is the most plush casino in Las Vegas," Eadington said.

Judging by national news reports, the country's new housing market is in gloomy shape. For example, a recent survey by the National Association of Home Builders showed builders are less confident about the near future of their industry than they have been in 15 years, save for September.

The association also said it expected to see sluggish growth in the industry, and then not until the end of the year. Looking at the smaller picture, though, shows that this nationwide phenomenon does not always apply to local markets.

"Some of that national information reflects on us and some of it doesn't," said Bambi Spahr, executive director of the Builders Association of Northern Nevada. Yes, times generally are tougher for local builders than they were a few years ago, and yes, many homeowners are finding themselves in financial trouble from risky mortgages they took on to buy their homes.

But in Reno's financial microclimate, industry officials see plenty of reason to think the future is going to be better. "We're not seeing any downward trends," Spahr said, adding that there has not been enough overall sales data to show whether the market is still flat or trending upward.

"Some prices are beginning to climb in some communities, though, and that shows greater confidence among builders that more people are beginning to buy homes," Spahr said.

Some builders have seen marked improvements in business recently, with more traffic going through their sales centers and more people seriously considering home purchases.

"Our sales have been quite good," said Barry Grant, president of KB Home's Northern Nevada/Northern and Central Valley California territory. "In our two communities (Ravenna and Calabria in the Damonte Ranch area), we sold 12 homes this last week. "That's the best week we've had in the past year."

Grant also said the market seems to be in the middle of the lows set last year and the highs set in 2005, with customers willing to buy homes but taking more time to choose houses they want to buy. "It's starting to normalize, but then again, it's hard to say what's normal anymore," Grant said.

In the month-to-month permit statistics:
Washoe County, Reno and Sparks issued a combined total of 259 new-home building permits in April, with a valuation of $46,501,864.

Most borrowers tend to concentrate more on whether they qualify for a loan based on income or credit, but a very important part of the lending process is the appraisal of the property being purchased or refinanced. The lender will be concerned with the condition, type and value of the property.

An appraisal is generally required on every real estate loan. The level of appraisal may vary -- from one as brief as the county tax assessor's valuation or as extensive as a very lengthy, narrative report.

The most common appraisal used for residential, single-family homes is called the Uniform Residential Appraisal Report developed jointly by Freddie Mac and Fannie Mae. These two agencies publish the majority of lending guidelines for the mortgage industry.

In most cases the appraiser is required to inspect both the interior and exterior of the home. This inspection comprises the beginning of a very comprehensive report on the value and type of home. The appraiser reports on the area. For example, whether it is urban, suburban or rural; how much it has built up; average marketing time of homes in the area, etc.

The appraiser describes the neighborhood and its various trends. The lot dimensions and zoning of the home are required on the report. The appraiser indicates the type of utilities, off-site improvements, lot shape, drainage, easements and any unusual characteristics of the lot.

The home is also measured and described, indicating type of construction, number of rooms, foundation type, garage, insulation, interior details on flooring, doors, trim and walls. The appraiser reports the type of appliances and heating or air conditioning systems with any additional amenities.

The cost of constructing the home also is indicated on the appraisal report. This gives the lender an idea of the replacement value of the property and also is useful for your insurance agent, as well in determining appropriate coverage for your home.

The appraiser also will compare the home you are buying or refinancing with at least three other homes in the general neighborhood that are similar to yours and have sold within the last six months. The appraiser will research local multiple listing records as well as recorded documents through the county to obtain comparable home information.

Your Realtor may also assist in this research. Often this can be difficult in neighborhoods where few houses have sold in recent months. Each of the three homes, called "comparables" is compared with the "subject" home. The appraiser makes dollar adjustments, both up and down, to arrive at a final value of the home being appraised.

For example, if your home has a finished basement, the appraiser will attempt to locate other homes with basements. If there are no homes in your neighborhood with basements that have recently sold, the appraiser probably will make an adjustment. The value of a basement will be added to the value of the comparables with no basements to bring their value more in line with your home.

Many times, depending on the type of home being appraised, the appraiser will attach additional pages describing various adjustments or market conditions that may influence the home's value. As you can see, the appraisal report is more than just the initial visit to your home. It gives the lender a description of the property serving as security for the loan.

Contact your lender today for more information about appraisals or qualifying for a home loan.

Interest rates are excellent, and property values are strong in this area. It's a good time to purchase or refinance a home.