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- Properties less than $250,000 are the most desirable and continue to be scarce in our region, therefore we are seeing an increase in median sales prices. Although 55 percent of new listings in April were less than the $250,000 there is an inventory shortage in this category creating a high demand that the supply cannot accommodate. It is not unusual for homes in this price range to receive more than 10 offers that exceed the asking price.
Reno/Sparks Homes Median Sales Price
- April 2013 median home price was up 6.5% to $207,750 compared to $195,000 in March 2013 and up 37.5% compared to $151,000 in April 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
- April 2013 homes sold was down -3.5% to 470 compared to 487 in March, 2013 and down -10.6% compared to 526 in April 2012.
Reno/Sparks New Listings
- April, 2013 new listings was up 15.7% to 655 compared to 566 in March, 2013 and up 9.2% compared to 600 in April 2012.
- Properties listed at under $250,000 made up 55% of new listings entering the market during the month of April, 2013.
- 26% of new April, 2013 listings were distressed. Short sales 22%; REO 5%; No special conditions 72%; and Other 2%.
Current Months Supply of Inventory (Unsold Inventory Divided by Sales per Month
- At the end of April, 2013, there was 3.7 months of unsold inventory based on the monthly sales rate.
Homes and Absorption by Price
- Properties in the $400,000 to $500,000 range are in a balanced market.
- Properties over the $750,000 price range have 13.7 month's supply of inventory.
- All other price ranges have less than 4.0 month's supply of inventory and would be considered a seller's market.
- 66% of the total sales for the month of April were in the under $250,000 price range.
Homes and Absorption by Area Group
- Suburban Southwest had the highest level of active inventory with 117 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 Virginia City Highlands are considered a balanced market within 5-7 months's supply of inventory (MSI). All remaining areas, except Washoe Valley, are considered a seller's market with less than 4.4 MSI.
- Sales in the category of No Special Conditions represented 59% of the sales in April, 2013 compared to 40% of the market in April 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 Home price has been trending up for the past fifteen months. Listing inventory has been trending up for the past four months and is up 16% over March. Low interest rates and affordable pricing continue to put demand on inventory, which is resulting in increased median price.
- For the fourth consecutive month, the sold to asking price ratio exceeded 100%. April sold to asking price ratio was reported at 100.2%.
- Listings in the category of no special conditions were up 88% over April 2012; in the category of Short sales, listings were down 40% from April 2012, and in the category of bank owned, listings were down 73% from April 2012.
- With the increase in prices, some sellers may have moved into an equity seller position or are in less of an underwater position. For those homeowners, who still remain underwater in their property with little hope of a loan modification, now may be the time to consider a short sale. The extension of the Mortgage Debt Relief Act is scheduled to expire December 31, 2013. If Congress does not extend the Act a second time, homeowners who sell their property for less than the amount owed will incur a tax on the forgiven portion of the debt. Short sales are taking at least 180 days to receive an approval and to close escrow. Now may be the time to contact a REALTOR® to start the process of marketing your property for sale to help ensure a close of escrow before year end and the expiration of the Mortgage Debt Relief Act.
- At the May 2013 NAR Mid-year meetings in Washington, DC, Lawrence Yun, NAR Chief Economist projected gains in Nevada median home price at 4.13%-8.75% over the next 12 months. He forecasted that there would be no recession and he anticipates the housing market will have improving home sales over the next 4-5 years.
To read the Reno Sparks Homes and Real Estate April 2013, complete with graphs, charts and 5 year history.
To read the March 2013 Reno, Sparks Homes and Real Estate Report.
Report courtesy of Reno/Sparks Association of REALTORS® with data supplied by NNRMLS.