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Reno/Sparks Homes and Real Estate Market Report December 2011

By
Real Estate Agent with RE/MAX 4000 FA100032580

Reno/Sparks Homes and Real Estate

Summary

  • December home sales at 524 are the highest home sales for a December in history. This number outpaces December 2010 sales by 8% and is up 6.1% from November. Year-end sales for 2011 were the second highest in the history of the MLS. We are optimistic that these are early and positive signs of a move toward recovery.

Reno/Sparks Homes Median Sales Price

  • December 2011 median price was up 3.9% to $155,400 compared to $149,506 in November 2011.
  • For the past two months we have seen moderate increases in median sales price. It is too early to call it a trend, but it is positive to see the modest price increases after five months of bottoming.
  • 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 $88.73.
  • 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 Homes Sold

  • December ended the month with 524 sold transactions, up 6.1% from the prior month.
  • Sales are up 8% from the same period last year.
  • Total sales for 2011 are the second highest in history and off just 4% from 2005, which is defined as the peak of the market.

Average Days on Market

  • The average days on market are 148 days, up 1.4% from November 2011.

Day on Market (DOM) by Special Conditions

  • Short sales continue to influence the average days on market at 202 DOM.
  • Properties with no special conditions 137 DOM and Other had 173 DOM.
  • REO properties average days on market remain stable at 102.

Reno/Sparks New Listings

  • 425 new listings were taken in December compared to 502 in November, a 15.3% decrease and a 12.2% decrease from December 2010.
  • Distressed New Listings by Special Conditions
  • 67% of new December listings were distressed - 33% (140) Short Sales; 34% (145) REO; No special conditions 31% (133) and Other less than 3% (7).

Status of Pending

  • Active Pending - Short Sales represent 61.6% of the total active pendings; Active Pending Loan equals 17.1%; Pending No-show represents 16.7%; Active Pending call 4.2%; and Active Pending House less than 1%.

Reno/Sparks Homes Supply of Inventory

  • Historical Months Supply of Inventory shows that December MSI is down to 5.1 months compared to November 2011 at 6.2 and down 24% from December 2010.
  • 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

  • Homes sales have been at historic or near historic levels throughout 2011. The big news is that 2011 total home sales is the second highest performing year, off only 4% from 2005 which is described as the peak. Year end 2011 homes sales (5,899) numbers are up 10% over 2010 homes sales (5,351). Beginning in 2008 year end home sales numbers have consistently out-performed the previous year's sales.
  • Washoe County reported an 11.6% unemploymnet rate for November the lowest rate reported since May 2009. Despite the unemployment rates, the high volume of sales reported this year shows that qualified buyers and investors are taking advantage of affordable prices and record low interest rates.
  • Interest rates reached another new low of 3.96% in December.
  • December's median price of %155,400 was up 3.9% from November. This is the second month we have seen modest increases in median sales price. It's too early to call it a trend; but after five months of bottoming, it is a positive sign. Sales at under $250-,000 represented 84% of the total sales for the month. With this trend, it's understandable why median price has remained at an affordable level.
  • Lower inventory is a signal that price declines may be coming to an end and a sign of pent up demand.
  • We are optimistic that these are early and positive signs of a move toward recovery.

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

To read Reno/Sparks Homes and Real Estate Market Report November 2011 and previous months and years.

Report courtesy of Reno/Sparks Association of REALTORS® with data compiled from NNRMLS.

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