Reno-Tahoe Real Estate Trends - May, 2011
See below for a snapshot of real estate statistics for the following markets in Northern Nevada: Reno, Sparks, Carson City, Carson Valley (Minden/Gardnerville/Genoa), Dayton, Fernley, and Lake Tahoe (Douglas County only).
- Reno - During April, home sales were down 19% from April, 2010 - 273 homes sold. April's median sold home price was $163,000 - a 19% drop from April, 2010. Reno Months of Inventory for May is at 7.1 months - up 4% from May, 2010. Again, all metrics for Reno are fairly stable. At the same time, the softening of sales volume, if it continues, could put additional pressure downward on pricing.
- Sparks - Sparks homes sold in April totaled 150 (down 5% from one year ago April sales); median home price equals $140,000 - 5% lower than the Sparks median home price one year ago. Months of Inventory for Sparks is at 6.3 months. This new low in median price as well as the softening in transaction volume (see Reno numbers) could indicate some continued weakness in pricing going forward, if these numbers continue this way for another 3-4 months.
- Carson City - There were 40 homes sold during April which represents a 5% increase from April, 2010. Carson City's median home price was $139,000 in April - down a whopping 29% from prices a year ago. At 8.3 Months of Inventory, Carson City's key metric of buy/seller market is down 3% from one year ago but still above the 5-7 months range. Expect Carson City to see more price decreases as compared to Reno, Sparks, Dayton, and Fernley - all of which have a lower Months of Inventory.
- Carson Valley - Homes sold in April 2011 totaled 46 - a 16% decrease over April, 2010. Carson Valley median home price at $178,000 is 17% below April, 2010. At 8.5 Months of Inventory (down 17% from the same time one year ago), this market, like Carson City, will remain in 'buyer market' territory for a while longer than other local markets. This new low in median price comes just 3 months after the most recent low of $180,000.
- Lake Tahoe - With 7 homes sold in April, the Tahoe market (Douglas county only) was equal to the April, 2010 sales volume. Months of Inventory, at 12.4 months, is up from April, however is still 23% lower than May, 2010. The median home price was $950,000. 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 April, 2011 totaled 35 homes - a 59% increase from April, 2010. Months of Inventory is 7.1 months - up 5% from one year ago. Median home price, at $157,000, is down 1% from one year ago. Dayton's sales volume pick up has started to translate into a lower months of inventory which should keep prices moving towards stability.
- Fernley - The median home price for Fernley in April, 2011 was $79,950 - a 36% decrease over the median Fernley home price in April, 2010. Fernley saw 40 homes sold representing a 15% decrease over April, 2010. Months of Inventory is at 5.7 months which continues to be the lowest in the region and puts Fernley "technically" into a price netrual market, however it does appear that there remains a pull downward on pricing as 4 of the last 6 months had a median price below $100K.
- Distressed Property Impact - With the exception of Tahoe, each of the cities mentioned above had at least 50% of the last months sold properties as either Short Sale or Foreclosure transactions. The significance of this high number of 'distressed properties' is you generally have a seller who is more motivated to price the home at a market price than a traditional home seller. Bank Owned and/or Short Sale listings that do not go into contract will generally have a price reduction every 30 - 40 days from these Sellers - putting downward pressure on the overall market.
- Other Factors - Interest rates remain low and prices are at new, recent lows - both factors driving increased sales volume. At the same time, there are large numbers of former home owners who have recently been either foreclosed on or sold via short sale. All of these former 'distressed sale' owners are not able to qualify for loans for at least 2 years. This group of potential future home buyers who are "on the sideline" presently also has a big impact on softening market demand. Add in unemployment and uncertainty surrounding government spending (at all levels) and there are certainly many forces which are impacting the current housing market.
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Broker - CalNeva Realty