Shortage of homes, rising prices, and low interest rates. Now is the time to buy or sell a home in Reno and Sparks. Call Sandra for a consultation (775) 287-8222
Summary
- We have not see this escalation in home pricing for more than eight years. In 2003,2004 and 2005 the sharp increase in pricing could be attributed to high demand and overly relaxed lending guidelines. In today's market, credit requirements are strict, but demand is outpacing available inventory.
Reno Sparks Homes Median Sales Price
- December 2012 median price was up 3.3% to $187,000 compared to $181,000 in November 2012 and up 20.5% compared to $155,000 in December 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 Number of Homes Sold
- December ended the month with 485 sold transactions, down 7% from the prior month and down 9.2% from the same period last year.
Reno Sparks Homes New Listings
- 299 new listings were taken in December compared to 381 in November, a 21.5% decrease from the prior month and a 31% decrease from the prior year.
- Properties listed at under $250,000, made up the 76% of new listings entering the market during the month of December.
- 44% of new December listings were distress; Short Sales 30%; REO 14%; No special conditions 54%; and Other less than 1%.
Current Months Supply of Inventory (Unsold Inventory divided by Sales per Month)
- As of December 31, there was 3.5 months of unsold inventory based on the December sales rate.
Homes and Absorption by Price
- Properties in the price ranges between $400,000-$1.0 MM price ranges are in a balanced market.
- Properties in the prices ranges under $400,000 have less than 4 month's supply of inventory.
- 74% of the total sales for the month of December were in the under $250,000 price range.
Homes and Absorption by Area
- Suburban Southwest had the highest level of active inventory with 135 Active listings.
- The North Valleys, Northwest, Spanish Spring and Sparks show the highest level of activity in pending sales for the month.
- The North Valleys, Northwest and Spanish Springs show the highest volume of closed sales for the month.
- Suburban Southwest and Washoe Valley are considered a balanced market within 5-7 month's supply of inventory (MSI). Old Southeast is considered a buyer's market with 7.3 MSI. All remaining areas are considered a seller's market with less than 4.4 MSI.
Conclusion
- Despite low inventory levels, total sales for 2012 are the second highest since 2005, which was the peak of the real estate boom.
- Forty-seven percent of the sales closed in December 2012 were short sale transactions. The highest percentage in history. This was likely a reaction to what was anticipated to be the expiration of the Mortgage Debt Relief Act. For those short sellers who were unable to close escrow in 2012, the Fiscal Cliff Bill passed by Congress in the 11th hour, gave short sellers a reprieve with an extension of the Mortgage Debt Relief to December 31, 2013.
- As of this reporting, only 12 of the 83 new listings taken in December in the $100,000-$150,000 price range were still available at this snap shot in time. The month's supply of inventory for homes priced under $400,000 stands at less than four months.
- The signs of an increase of bank owned new listings in both Reno and Fernley may be an early indication that banks are renewing their foreclosure activity under the guidelines of Assembly Bill 284 and the National Mortgage Settlement. If so, this should relieve some of the pressure on lack of inventory.
To read the entire RSAR_Market_Report December 2012 complete with charts, graphs and five year history.
To read November 2012 Real Estate Report with previous months and years available.
Report courtesy of Reno-Sparks Association of REALTORS® with data input by NNRMLS.
Comments(0)