Market Conditions for Reno, Nevada   Reported by Diane Cohn, REALTOR, ABRAs of June 2, 2006.

Significant inventory increases, lower absorption rates, longer days on the market, prices holding steady. That’s May 2006 in a nutshell.

An increase in inventory in the under $300K category caused absorption rates to slip and days on the market to rise. In May, these properties closed for over 98% of asking price in under 91 days (up from 85) for an average $229,690 (down from $231,667). The market absorption rate for these properties declined to 35% (down from 41%). With 572 new listings in this price range (up from 462), we have a nearly three month supply of fresh inventory. Expired listings are holding at 13%.

DEAR BOB: My stubborn mother, 78, owns her home free and clear, is alert and in quite good health. The house is worth about $450,000. When I recently visited her (I live about 1,500 miles away so don’t get to see her often), I was shocked at how run down her house has become. The roof leaks. I could smell the mold. She finally admitted to me, after a glass or two of champagne at Sunday brunch, that she has outlived her assets, except for Social Security and a small pension. When I suggested a reverse mortgage, which you often recommend, she said her banker recommends a home equity loan to pay for a new roof and other repairs. She wants to stay in her house “forever,” especially because she loves her garden. What do you suggest? –Thomas R.

One of the most vocal proponents of the Chicken Little philosophy of real estate is John R. Talbott, who in 2003 wrote the best selling book The Coming Crash in the Housing Market. His new book Sell Now! The End of the Housing Bubble was published this year and has occasioned a lot of press and a certain amount of hysteria.