UNR’s Bonnefant says foreclosure cycle key to recovery

On one of many weekend morning talk radio programs, UNR’s Brian Bonnefant (who is with the Business Services Group) kind of told it like it is with regards to Northern Nevada’s economic turnaround: clear out the glut of foreclosed and existing homes. That, said Bonnefant, will allow the construction industry to fire up their hammers and get to work. He said that basically the area is getting hammered – or not, pun intended – because the average home price dropped from $350k to $179k today. Along with all the unemployment, that left a lot of upside-down folks walking away from their mortgages – that led to a 40 percent loss in construction jobs and people getting denied loans.

Many homes on the market are new homes – environmentally updated and ready to go – but few takers. Many published articles seem to suggest that the more environmentally “green” a home is, the better the chance it may have with buyers. Any opinions on that?

As for Californians coming across the border and screwing everything up? Don’t worry, Bonnefant said, they’ll come when the prices go back up – not now. And that’s good, because someone needs to buy the glut of homes on the Nevada side of the down market. “We need to get through the foreclosure cycle first,” said Bonnefant.

As for jobs? He stated on the AM talker that 44 percent of businesses surveyed in the Reno are will likely be hiring within the next 12 months. How’s that for optimism?

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