Reno-Sparks Homes and Real Estate Report July 2011

Reno-Sparks Homes and Real Estate

Summary:

• Our year-over-year number of home sales indicates more buyers and investors are realizing it is an opportune time to purchase a home versus a year ago. In a recent story by 'Business Insider', Reno was named as the 8th best housing market for the next five years. The data provided by Case Shiller Indexes projected an annual growth from 2011 to 2016 to be 9.3 percent.

Reno-Sparks Homes Median Sales Price

• July 2011 median price was down 2.2% to $150,000 compared to $153,400 in June 2011
• Median price is defined as the mid-point, where, for the time period indentified, the price for one-half of the sales are higher and one-half are lower.

Reno-Sparks Homes Price per Square Foot Solds

• Price per square foot is at $93.11

Reno-Sparks Homes Sold

• July ended the month with 494 sold transactions, down 7.5% from the prior month.
• Sales are up 18.8% from the same period last year. July 2010 continued to be influenced by the First Time Home Buyer tax credit.
• This month's sales are the fifth highest home sales for a July in the history of tracking the information through the MLS.

Average Days on Market

• The average days on market are 129 days, up 3.9% from June 2011.

Day on Market (DOM) by Special Conditions

• Short sales continue to influence the average days on market at 199 DOM
• Properties with no special conditions, REO, and Other show a range of between 91 and 110 DOM.

Reno-Sparks Homes New Listings

• 691 new listings were taken in July compared to 767 in June, a 9.9% decrease.

Distressed New Listings by Special Conditions

• 57% of new July listings were distressed, 236 Short Sales, 160 REO, 268 No special conditions, and 27 other.
• NNRMLS implemented a recent change in the reporting of Fannie Mae, Freddie Mac and HUD re-possed listings as Real Estate Owned (REO), July new listings by special conditions reflect a more accurate picture. REO listings represented 23% of the market; Short Sales 34%; No special conditions 39%, and Other less than 4%. A positive sign ~listings with no special conditions have increased steadily since December. The market remains dominated by distressed new listings representing 57% of the market.

Status of Pending

• Active Pening - Short Sales represent 58.3% of the total active pendings; Active Pending Loan equals 19.1%; Pending No-show represents 17.6%; Active Pending call 4.6% and Active Pending House less than 1%.

Reno-Sparks Homes Current Months Supply of Inventory (Unsold Inventory divided by Sales per Month)

• As of July 31, there was 6.9 months of unsold inventory based on the July sales rate.

Historical Months Supply of Inventory

• Historical Months Supply of Inventory show that July MSI is up to 6.9 months compared to June 2011 at 6.6 and down 23% from July 2010.
• In the past twelve months, there have been four months which have fallen into what is defined as a balanced market. In the past 24 months, the market has remained as primarily a buyer's market.
• The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.
• Unsold inventory includes Active Pendings. This method of reporting months supply of inventory follows the industry standard of including all pending sales remaining in active status in the active inventory.

Conclusion

• July home sales are fifth highest home sales for a July in the history of tracking the information through the MLS.
• Year-to-date 2011 homes sales (3233) numbers are outpacing 2010 unit sales (3142).
• July's median price of $150,000 was down 2.2% over June. There was some artificial stabilizing in the median price during the tax credit influenced period. After the final deadline of September 2010, we have seen a continued decline in the median price. Savvy buyers with stable jobs and investors are seeing this as an excellent time to buy a home.
• Despite the unsettled environment on Capitol Hill and Wall Street following the increase of the debt ceiling, interest rates are at record lows and are now predicted to remain low into 2013.
• The average 15 year fixed rate loan fell to 3.5%. This is the lowest level since 1991, when mortgage giant Freddie Mac began tracking it. Freddie Mac also reported that the 30 year fixed rate loan dropped to 4.32% the lowest it has been all year.
• To get the best rates, mortgage specialists say, consumers must have a minimum FICO credit score of 720 or 740 out of a possible 850. For even the most solid buyers who have had a hiccup in their credit, this may make qualifying a challenge.
• Case Schiller has name Reno as the 8th best housing market for the next five years. The data proided by Case Schiller indexes projected an annual growth from 2011 to 2016 to be 9.3 percent. Further, Case Schiller projected that after bottoming in the 3rd quarter of this year, the Reno market will bounce back with a 4.6 percent growth in 2012 and faster in the years to come. Positive news, but a stabilizing economy and improving job market are the long term keys to a housing market recovery.

Report courtesy of the Reno Sparks Association of REALTORS® with data provided by NNRMLS

To read the complete report with charts, graphs and 5 year history RSAR Market Report July 2011

To read the Reno-Sparks Homes and Real Estate Report for July 2011 and previous months and years.