Knowledge You Need to Stay UP in a DOWN Market

Knowledge is power, according to Doug Smith. But, Knowledge is not power without action. What actions can you take to help you stay up in a down market? Find out at The Builders Mid-Year Construction Analysis Wednesday at John Ascuaga’s Nugget. RSVP required.

Last Chance for Mid-Year Construction Analysis registration

Find out when we can expect the housing market and local economy to improve, how Reno compares to other markets and what's next for housing at our Mid-Year Construction Analysis Wednesday. Register today!

HOUSING AFFORDABILITY CONTINUES TO HOVER NEAR HIGHEST LEVEL IN 18 YEARS

NAHB announced that nationwide housing affordability during the second quarter of 2009 continued to hover near its highest level in 18 years.

Roughly 72 percent of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5 percent during the previous quarter and up from 55.0 percent during the second quarter of 2008.

"The increase in affordability -- along with the $8,000 federal tax credit for home buyers -- is stimulating demand, particularly among young, first-time buyers," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "But to keep the recent upturn in home sales going into next year, Congress will need to extend the tax credit for another year and make it available to all buyers in an effort to encourage activity in the trade-up market."

Robson noted that the tax credit, which expires on Nov. 30, is currently limited to just buyers purchasing their first home.

Law firm tries to lure homeowners into construction defect litigation

We have recently learned that a new law firm in town is trying to drum up business by trying to lure homeowners in to filing lawsuits against their builders. This is nothing more than a scheme to create business for themselves - since they are the only ones that benefit from these suits.

Homeowners should first contact their builder with any problems in their home. Trust me, any builder would rather fix your problem than have to go to court or settle on a lawsuit. It will be much less expensive for the builder and the homeowner.

If the builder is no longer in business or can’t help, for whatever reason, the next step would be the State Contractors Board. This board exists to protect the consumer and has a fund for construction defect issues.

An attorney would be the very last resort in settling a construction defect issue. While a homeowner may be lured in by no up front costs to file a lawsuit, it will really cost them in the long run. By suing the builder they will likely decrease not only their own property value, but their entire neighborhood. They will probably end up with a settlement for the amount it would cost to fix the problem. The attorney will then keep roughly 40% of that money. Now, the homeowner has only a little more than half of the money for the repair. When they want to sell their home, they will have to disclose the problem they had with the house, whether is gets repaired or not.

Who wins in this situation? Only the attorney.

Red Flag Fire Warning from Washoe County

As you know, fire season is once again upon us.

National Weather Service has issued a Red Flag Warning for July 7, 2009. Red Flag Warning is a fire condition notice meaning there exists the highest risk and most dangerous conditions for fire. The Red Flag Warning is through this evening, but could be extend over the next few days. You can check for Red Flag Warnings online.

For additional information please read the Fire Season Warning Letter.