Reno-Tahoe Housing Market Spotlight - September, 2012
Below is a summary recap of housing market conditions throughout the Reno-Tahoe region for August/September 2012. We are continuing to see tight inventories (many of the homes that are reported as in inventory for this report are in a "pending" or "in escrow" status which has been the way these charts have been prepared and presented for years), stable to increasing prices over the recent months, and some interesting new trends developing within the area of bank foreclosure activity.
Bank Foreclosure Update - Ticor Title publishes a chart each month that shows trends for Notices of Default, Notices of Sale, and Bank/Foreclosure Inventory. If you are a regular reader of this blog, you know that the Notices of Default dropped significantly in October, 2011 due to the AB-284 law going into effect. For several months, it has been appearing as though this law would have a long term impact resulting in REO inventory levels dropping to about 10% of what they were prior to October, 2011. We are, however, beginning to see a reversal in this trend. Review the Ticor Title Summary Here and see below for some comments from Erin Schiller of Ticor Title:
"Notice of Default (NOD) filings has increased significantly in the last few months. As you can see the numbers have almost tripled since May 2012. We are now seeing the larger banks work within the requirements of the New Law (AB284) that was effective October 1, 2011. As predicted, the slow of Notice of Defaults from October to present have slowed the Notice of Sales (NOS) and Trustees Deeds. The new single family residential REO (Bank Owned) listings dropped slightly from 57 in July to 52 in August. As mentioned in prior comments, inventory in Nevada is down considerably and the real estate community is very concerned about the lack of inventory available in the coming months for the potential buyer. Nevada is not alone in regards to inventory. After talking with our title operations in other states throughout the Nation, lack of inventory is an issue everywhere. With the increasing Notices of Default in Nevada, we may see more sellers listing properties for short sale, which will hopefully help to increase our inventory."
Below is a brief summary of each local market with year over year details:
- Reno - During August, home sales were down 1% from August, 2011 - 363 homes sold (keep in mind, this number is well below the market demand based on supply (inventory) constraints). August median sold home price was $180,000 - 16% above August, 2011 - this is slightly above the $175K mark that has been maintained since May, 2012. Reno Months of Inventory for September is at 5.2 months - 35% lower than September, 2011 and holding steady at this number for 5 straight months now. On the distressed property front for August, 2012, Reno had 134 short sales (37% of the total) and 41 REO sales (11% of the total). Last August, there were 104 short sales and 107 REO sales - this is another way to gauge the impact of AB-284.
- Sparks - Sparks homes sold in August totaled 156 (down 8% from one year ago August sales); median home price equals $170,000 - up 13% from Spark's median home price of one year ago and continuing a positive trend. Months of Inventory for Sparks is again at 4.6 months, 30% lower than September, 2011 which is consistent with the market experiences mentioned earlier in this blog post.
- Carson City - There were 59 homes sold during August, 2012 which represents a 16% increase from August, 2011. Carson City's median home price was $149,900 in August - the same as prices a year ago. Carson City Months of Inventory is at 4.6 - this indicator continues to trend down quite rapidly and is pointing towards a stable to slightly increasing market in the near future.
- Carson Valley - Homes sold in August 2012 totaled 70 - a 5% decrease over August, 2011. The Carson Valley median home price at $223,000 is 19% higher than the August, 2011 median price. At 6.6 Months of Inventory (down 31% from the same time one year ago), this market continues to move closer towards more stable pricing but is likely still a ways off compared to other local markets in the region. This market, however, has been heating up and continues to be 'competitive' for home buyers in the lower price ranges - this is evidenced by the higher level of home sales this summer.
- Lake Tahoe - With 10 homes sold in August, the Tahoe market (Douglas County only) was 11% over the August, 2011 sales volume. Months of Inventory, at 14.7 months, is 27% lower than September, 2011. The median home price was $360,000. Due to the small sampling size of homes sold and the wide range of home prices at Lake Tahoe, the median price shows wide fluctuation on a monthly basis.
- Dayton - Dayton home sales in August, 2012 totaled 44 homes - a 63% increase over August, 2011. Months of Inventory is at 4.6 months - 37% lower than one year ago. Dayton median home price, at $114,700, is up 15% from one year ago and 29% since March, 2012!
- Fernley - The median home price for Fernley in August, 2012 was $89,450 - a 12% decrease over the median Fernley home price in August, 2011; this breaks a recent trend of year over year price appreciation for Fernley which is a surprise to me based on the affordability of homes in this area. Fernley saw 36 homes sold representing a 14% decrease over August, 2011. Months of Inventory is at 4.7 months. Based on affordability, months of inventory, and what we are seeing in Reno/Sparks, I would expect the median price to slightly rise and stay in the $90 to $100K range for the remainder of this year.
If you want more details and the color charts used to prepare this blog post, you can see the full version of The Greater Reno-Tahoe Real Estate Report on our web site. It is available in a PDF file format for viewing/printing and is free!
Have a question or comment on market conditions? Leave a comment below and I'll answer and/or publish your comment for others to see and learn from!
Broker - CalNeva Realty