Reno and Sparks Nevada, Homes and Real Estate Report, your guide to buying or selling a home.
- The lack of inventory, along with strong buyer demand for homes continues to push median price up month-over-month. Even with rising median prices, home ownership remains at affordable levels for buyers with a steady income, a reasonable down payment and good credit.
Reno Sparks Median Home Price
- March 2013 median price was up 2.6% to $195,000 compared to $190,100 in February 2013 and up 30.1% compared to $149,900 in March 2012.
- 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 Homes Sold
- March 2013 homes sold was up 14.8% to 480 compared to 418 in February 2013 and down -11.1% compared to 540 in March 2012.
Reno Sparks Homes New Listings
- March, 2013 new listings was up 17.5% to 558 compared to 475 in February, 2013 and down 8.2% compared to 608 in March 2012.
- Properties listed at under $250,000 made up 58% of new listings entering the market during the month of March, 2013.
- 32% of new March, 2013 listings were distressed. Short sales 26%; REO 4%; No special conditions 68%; and Other 2%.
Reno Sparks Current Months Supply of Inventory (Unsold Inventory divided by Sales per Month)
- At the end of March, 2013, there was 3.4 months of unsold inventory based on the monthly sales rate.
Homes and Absorption by Price
- Properties in the $400,000-$500,000 range and $500,000 to $750,000 range are in a balanced market.
- Properties over the $750,000 price range have 8.5 months supply of inventory.
- All price ranges below $400,000 have less than 4.3 month's upply of inventory and would be considered seller's market.
- 71% of the total sales for the month of March wre in the nder $250,000 price range.
Homes and Absorption by Area Group
- Suburban Southwest had the highest level of active inventory with 103 Active listings.
- The North Valleys, Northwest, Spanish Springs 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.
- Only the VC Highlands are considered a balanced market within 5-7 months supply of inventory (MSI). All remaining areas are considered a seller's market with less than 4.9 MSI.
- Sales in the category of no special conditions represented 68% of the sales in March 2013 compared to 39% of market in March 2012. This is attributable to equity sellers entering the market and investors who purchased at or near the bottom of the market and are now returning that inventory back to the market.
- Median price has been trending up for the past fourteen months. Although listing inventory was up 18% over February, the demand for inventory is driving the median price up.
- For the third consecutive month, the March 2013 sold to asking price ratio exceeded 100%, reported 100.7%. The sold to asking price ratio has been trending up since January 2012.
- The Department of Housing and Urban Development recently announced a change in its policies concerning the cancellation of the annual Mortgage Insurance Premium (MIP) and an increase to the annual MIP. The change in the Annual Mortgage Insurance Premium is rolling out in two phases. Effective April 1, 2013, the Annual Mortgage Insurance Premium on a typical FHA loan, that is a 30 year loan with 3.5% down, increased by 10 basis points from 1.25% to 1.35%. The increase applies to all loan terms, including 15 year fixed rate FHA loans.
- The second phase becomes effective June 3, 2013 and deals with the length of time or the term that the annual Mortgage Insurance Premium is applied. Currently the MIP is cancelled when the borrower has held the loan for 5 years or reaches a 78% loan to value. Effective June 3, the MIP will be applied for the entire life of the loan that the borrower has the FHA mortgage.
- According to HUD Field Director, Tony Ramierez, "The reasoning behind this change is that although the borrower no longer was required to continue paying MIP after 5 years or reached 78% loan to value, FHA remained responsible for insuring 100 percent of the outstanding loan balance throughout the entire life of the loan, a term which often extends far beyond the cessation of these MIP payments. FHA's Office of Risk Management and Regulatory Affairs estimates that the Mutual Mortgage Insurance (MMI) Fund has foregone billions of dollars in premium revenue on mortgages endorsed from 2010 through 2012 because of this automatic cancellation policy. Therefore, FHA will once again collect premiums based upon the unpaid principal balance for the entire period for which FHA is entitled. This will permit FHA to retain significant revenue that is currently being forfeited prematurely.
To read the Reno Sparks Homes Market Report March 2013 complete with charts, graphs and five year history.
To read February 2013 report and previous months and years.
Report courtesy of Reno/Sparks Association of REALTORS® with data supplied by NNRMLS.
If you are considering buying or selling a home in Reno/Sparks, Nevada Call Sandra (775) 287-8222