The Reno/Sparks area has the dubious distinction of ranking #4 among the nation’s 161 largest metropolitan statistical areas having homes with negative equity. Reno/Sparks was outranked only by Las Vegas, Stocton, CA andModesto, CA.
The first quarter 2009 report prepared by Zillow a real estate reporting website, showed Reno/Sparks at 48.5% of the homes with negative equity and with Las Vegas leading, at 67.2%, followed by Stockton, CA at 51.1% and Modesto, CA at 50.8%.
We must note that while the Reno/Sparks area experienced extreme appreciation during the go-go years of the early 2000’s, much of that appreciation was fueled by folks from California. Now, we are experiencing a decline in home values and again it is linked closely to our neighbors in CA. It should also be noted that 15 of the 25 top markets with negative equities are located in California.