The residential housing market has been strong since early summer. Typically sales slow down during the holidays. and we are seeing a decrease in month-over-month sales, but the numbers continue to show a strong year-over-year increase in sales volume. Median sales prices slightly dropped continuing the flat pricing trend that we have seen over the past six months. We anticipate steady sales moving through the holidays and into the first quarter of 2010, with buyers responding to the extension and expansion of the home buyer tax credit and exceptionally affordable interest rates.
SALES: November ended the month with 49 sold transactions as compared to 62 for October, a 21% decrease over the previous month and an 88% increase over the same period last year (2008).
SALES MIX: Bank ownedunit sales remained steady with November at 26 compared to 26 in October. Bank owned sales represent 53% of the sales, up from 41% reported in October. Short sales increased to 14 in November up from 12 in October, 29% of the mix in November as compared to 19% in October. No Special Condition (None) sales decreased in November to 7 as compared to 18 in October. Sales reported as "No Special Condition" represented 14% of the sales, as compared to 28% reported in October.
MEDIAN PRICE: The median price in November 2007 was $209,900, November 2008 was $151,750 (-28% change) and November 2009 $90,000 (-41% change). November 2009 median price decreased to $90,000 a 22% decrease compared to October 2009.
LISTINGS: 59 new listings were taken in November compared to 70 in October, a 16% decrease. The percentage of "Distressed" new listings increased to 64%, up 2% from October. The number of Bank Owned listings continues to decline from is its high of 38 in June to 20 in November.
MONTHS SUPPLY OF INVENTORY: As of November 30, 2009, Fernley increased to 5.2 months of inventory based on a 90-day sales rate. This is the ninth month in 2009 Fernley's Months Supply of Inventory has been below what is describes as a balanced market, the Months Supply of Inventory (MSI) returned to balanced. The National Association of REALTORS describes a balanced market as between 5 and 7 months supply.
CONCLUSIONS:
- November closings were down from October but volume remains at 2005 levels.
- The median price dropped 22%. Of the reported 49 sales, 28 (43%) had a reported sold price under $100,000.
- Short Sale and Bank Owned closings increased as a percentage of the total market mix, and Special Conditions None decreased over the prior month.
- The median home price is in line with the median household income in recent months for the first time since 2002.
REMEMBER:
- First-Time Home Buyer Tax Credit of up to $8000 is extended until April 30, 2010
- Expanded tax credit to grant up to $6500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
- HUD issued Mortgagee Letter #09-52 states Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence to: a) take advantage of declining market conditions, and (b) purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
Content taken from Reno/Sparks Association of Realtors report.
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