Reno/Sparks, NV Homes and Real Estate Report March, 2014

First quarter 2014 prices are up only 2.6% over 4th quarter 2013, compared to an 18.4% increase over the first quarter 2013.

Summary

• Median price is up substantially from the bottom of the market in January 2012, a positive statement about the recovering real estate market after seven years of declining values.  After the acceleration in median price in 2012 and early 2013, the growth in median sales price has slowed.  We see this as another positive sign of recovery.

Reno/Sparks Median Home Sales Price

• March, 2014 median price was down -3.4% to $227,000 compared to $235,000 in February, 2014 and up 16.4% compared to $195,000 in March, 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 Homes Sold

• March, 2014 homes sold was up 20.2% to 465 compared to 387 in February, 2014 and down -5.3% compared to 491 in March 2013.

Reno/Sparks Homes New Listings

• March, 2014 new listings was up 14.5% to 631 compared to 551 in February, 2014 and up 9.2% compared to 578 in March, 2013.
• Properties listed at under $250,000 made up 46% of new listings entering the market during the month of March, 2014.
• 15% of new March, 2014 listings were distressed.  Short sales 9%;  REO 5%; No special conditi0ns 85%; and Other 2%.

Current Months Supply of Homes  (Unsold Inventory divided by Sales per Month)

• At the end of March, 2014, there was 3.7 months of unsold inventory based on the monthly sales rate.

Buyer/Sellers Market

• Buyer's market are homes $400,00-$500,000; $500,000 to $750,000 and over $750,000
• Seller's market are homes $100,000-$150,000; $150,000-$200,000; $200,000-$250,000;  $250,000-$300,000;  $300,000-$400,000.
• 58% of the total sales for March, 2014 were in the under $250,000 price range.

Conclusion

• The trend shows that the acceleration in median home price is slowing.  First quarter 2014 prices are up only 2.6% over 4th quarter 2013, compared to an 18.4% increase over the first quarter 2013.
• Home sales for March are the seventh highest in history.
• March pending sales were up 14% with 417 compared to 365 in February 2014, pendings are a leading indicator of future closed transactions.
• Affordability is an important discussion in today's market.  There is no specific level of the index that signals "unaffordable".  Rather, it's better to view the index as a measure of how opportunities for households with a median income are changing over time.  For example, the Nevada median-income household of $50,000 will have a harder time buying a home today than they did two years ago, mostly because prices have increased (and not because mortgage rates are a lot higher or incomes a lot lower).
• The affordability index has changed due to current market conditions of higher prices and lean inventory.  It doesn't mean the median-income household cannot afford to purchase a home in today's market, it simply means the purchasing power has declined as a result of less inventory and a higher median price.

To read the RSAR Market Report March 2014 with charts, graphs and five year history.

To read February 2014 report and previous months and years.

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