Reno-Sparks Homes and Real Estate Report February, 2014

By
Real Estate Agent with RE/MAX 4000 FA100032580

The Median Sales Price has Slowed From the Accelerated Pace Seen From January, 2013 Through May,  2013, but is Still up 24 Percent over February, 2013.

 

Reno-Sparks Homes Median Sales Price

  • February, 2014 median home price was up 6.8% to $235,000 compared to $220,000 in January 2014 and up 23.6% compared to $190,100 in February, 2013.
  • 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

  • February, 2014 homes sold was up 7% to 375 compared to 350 in January, 2014 and down -11.1% compared to 422 in February 2013.

Reno-Sparks New Listings

  • February, 2014 new listings was up 7.9% to 548 compared to 508 in January, 2014 and up 13.2% compared to 484 in February 2013.
  • Properties listed at under $250,000 made up 51% of new listings entering the market during the month of February, 2014.
  • 21% of new February, 2014 listings were distressed.  Short sales 13%:  REO 6%; No special conditions 79%; and Other 1%.

Current Months Supply of Inventory  (Unsold Inventory over Sales per Month)

  • At the end of February, 2014, there was 4.5 months of unsold inventory based on the monthly sales rate.

Homes and Absorption by Price

  • Properties under $100,000, $200,000 to $250,000, $400,000 to $500,000 and $500,000 to $750,000 are in a balanced market.
  • Properties over $750,000 are a buyer's market.
  • All other price bands have less than 4.4 month's supply of inventory and would be considered a seller's market.
  • 54% of the total sales for the month of February were in the under $250,000 price range.

Homes and Absorption by Area Group

  • Suburban Southwest had the highest level of active inventory with 146 Active listings.
  • The North Valleys, Northwest, Spanish Springs, and Sparks show the highest level of activity in pending sales for the month.
  • Spanish Springs, North Valleys, Metro Southwest, Northwest, and Sparks show the highest volume of closed sales.
  • Northwest and Spanish Springs are considered a balanced markets with 5-7 month's supply of inventory (MSI).
  • Suburban Southwest, VC Highlands, and Washoe Valley are a Buyer's Market.
  • All remaining areas are considered a seller's market.

Conclusion

  • The median home sales price has slowed from the accelerated pace seen during the period January 2012 through May 2013, but is up 24% over February 2013.
  • Pending sales were down slightly in February 2014 at 365 compared to 277 in January, 2014.  Pendings are a leading indicator of future closed transactions.
  • We continue to monitor affordability.  The Washoe County year-over-year jobs market is incrementally improving; however, if the median income remains level, increasing home prices will affect affordability for the average buyer.
  • The entry level segment of the market with a price range of $100,000-$200,000 has less than 3.2 months supply of inventory.  In the price range between $200,000-$500,000 we see 3.9 to 5.7 month's supply of inventory.
  • The difference in price tiers shows a tale of two very different markets.  As purchasers of upper end homes increase, first-time buyers are finding it difficult to achieve their dream of homeownership.
  • For those sellers with equity and a willingness to price their home competitively, particularly at the entry level of the market, there is still buyer demand and it's an excellent time to sell.

To read  RSAR Feb 2014with charts, graphs and five year history.

To read January, 2013 report and previous months and years.

Report courtesy of Reno/Sparks Association of REALTORS® with data supplied by NNRMLS.

 

 

 

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