Reno/Sparks Homes and Real Estate Market Report November 2011

Summary

• November sales are up 22% over last year and year-to-date home sales have exceeded 2010 by 10%. We have also seen relative stable prices for the past seven months. These are positive indicators for the residential housing market.

Reno/Sparks Homes Median Sales Price

• November 2011 median price was up less than 1% to $149,506 compared to $149,000 in October 2011.
• Median price is defined as the mid-point, where, for the time period identified, the price for one-half of the sales are higher and one-half are lower.

Reno/Sparks Price per Square Foot Solds

• Price per square foot is at $88.30.
• Price per square foot by area groups, as provided in the Detailed Report, is a good way to compare similar homes for current value.

Reno/Sparks Number of Homes Sold

• November ended the month with 488 sold transactions, down 1% from the prior month.
• Sales are up 22.3% from the same period last year. November 2011 is the second month of comparing year-over-year figures without the influence of tax incentives.

Reno/Sparks Homes Average Days on Market

• The average days on market are 146 days, slightly down from October 2011.

Days on Market (DOM) by Special Conditions

• Short sales continue to influence the average days on market at 222 DOM.
• Properties with no special conditions, and Other are comparatively close at 117 and 113 DOM respectively.
• REO properties average days on market remain level at 96.

Reno/Sparks New Listings

• 499 new listings were taken in November compared to 516 in October, a 3.3% decreaxe and an 8% decrease from November 2010.

Status of Pending

• Active Pending - Short Sales represent 61.7% of the total active pendings; Active Pending Loan equals 16.5%; Pending No-show represents 16.7%; Active Pending call 4.6%; and Active Pending House less than 1%.

Reno/Sparks Homes Supply of Inventory (Unsold Inventory divided by Sales per Month)

• As of November 30, there was 6 months of unsold inventory based on the November sales rate.

Historical Months Supply of Inventory

• Historical Months Supply of Inventory show that November MSI is down to 6.0 months compared to October 2011 at 6.5 and down 32% from November 2010.
• Nine of the past twelve months, the market has been what is defined as balanced. 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

• November home sales at 488 are the highest homes sales for a November in history. This number outpaces November 2010 sales by 22%. For the second month, we are comparing year-0ver-year sales period without the artificial influence of a tax credit. Both October and November 2011 outperformed sales numbers for the same periods in 2010.
• Year-to-date 2011 homes sales (5.364) numbers are up 10% over 2010 home sales (4.876). Year-to-date sales figures have already outpaced total 2010 sales. Sales continue to perform strong.
• November's median price of $148,506 was up $506 from October. The median price has traded in the 4% range for the past six months. Sales at under $150,000 represented 50% of the total sales for the month. With this trend, it's understandable why median price has remained in the at an affordable level.
• Freddie Mac reported that the 30-year fixed rate loan dropped to 3.98%, compared to 4.11% in October. This is another record low since Freddie Mac began tracking rates in 1971. Sources report that by the middle of 2012 mortgage interest rates should gradually rise from today's record lows and reach 4.5%.
• A qualified homebuyer purchasing a home priced at $150,000 with a 3.5% down payment, at 3.98% interest rate will have a monthly payment of approximately $714.00 principal and interest.
• We continue to monitor the impact on the market due to October 2011 passage of Nevada law requiring more stringent documentation required of banks in order to perform foreclosures in a timely manner. We may not see any impact on inventory levels as a result of the stringent requirements on the banks until the first quarter of 2012. If the banks are able to sdapt to the new requirements, we anticipate sales activity will keep pace with inventory coming on the market.

To read the complete Reno-Sparks Homes and Real Estate Market Report November 2011, complete with graphs, charts and 5 year history.

Report courtesy of Reno/Sparks Association of Realtrs® in cooperation with NNRMLS.