Reno-Tahoe Housing Market Update - February, 2017

This blog post will summarize January, 2017 sales volume and pricing as well as Months of Inventory for February 2017. While January may have some softening in homes sold due to travel restrictions over the Sierras due to the volume and frequency of major storms, the overall projections for 2017 remain the same. We should continue to see a moderation in price appreciation due primarily to affordability based on local wages. At the same time, EDAWN (Economic Development Authority of Western Nevada) recently summarized companies that they assisted during 2016 and their plans for additional hiring in the local region. This influx of companies and the people they will need to hire will continue to drive demand for housing, especially affordable housing. Below is a table of EDAWN's summary as recently presented at the Economic Update Luncheon in January:

Below is a brief summary of each local market with year over year details:

• Reno - During January, home sales were down 6% from January, 2016 - 236 homes sold. January's median sold home price was $315,000 - 10% higher than January, 2016. Reno Months of Inventory for February is at 3.3 months - 1% lower than February, 2016 and still a strong indicator of a Seller's market.
  
  Reno Housing Trends Chart (monthly)
  Reno Median Price Chart (2002 to 2017-YTD)
  Reno Median Price vs. Other Local Cities (monthly)
  
  
• Sparks - Sparks homes sold in January totaled 122 (down 12% from one year ago January sales); median home price equals $288,000 - 10% higher than the Sparks median home price one year ago. Months of Inventory for Sparks is at 5.0 months, 22% lower than February, 2011.
  
  Sparks Housing Trends Chart (monthly)
  Sparks Median Price Chart (2002 to 2017-YTD)
  Sparks Median Price vs. Other Local Cities (monthly)

• Carson City - There were 43 homes sold during January, 2017 which represents an 2% increase from January, 2016. Carson City's median home price was $267,000 in January - up 11% from prices a year ago.  At 3.5 Months of Inventory, Carson City's key metric of buy/seller market is down 13% from one year ago and is still indicating a Seller market overall.
  
  Carson City Housing Trends Chart (monthly)
  Carson City Median Price Chart (2002 to 2017-YTD)
  Carson City Median Price vs. Other Local Cities (monthly)
  
  
• Carson Valley - Homes sold in January 2017 totaled 46 - a 6% decrease over January, 2016. The Carson Valley median home price at $312,000 is 13% higher than January, 2011.  At 3.9 Months of Inventory (down 10% from the same time one year ago), this market is still showing a Seller's market but not by much as 4 to 6 months of inventory is considered to be 'balanced' which would equate to no price appreciation or depreciation over time.
  
  Carson Valley Housing Trends Chart (monthly)
  Carson Valley Median Price Chart (2002 to 2017-YTD)
  Carson Valley Median Price vs. Other Local Cities (monthly)

• Lake Tahoe - With 11 homes sold in January, the Tahoe market (Douglas County only) was 22% higher than the January, 2011 sales volume. Months of Inventory, at 9 months, is 30% lower than February, 2016. The median home price was $900,000. 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.
  
  Lake Tahoe Housing Trends Chart (monthly)

• Dayton - Dayton home sales in January, 2017 totaled 31 homes - 138% more than what sold in January, 2016. Months of Inventory is at 3.8 months - 8% lower than one year ago. Dayton median home price, at $235,000 is up 17% from one year ago.
  
  Dayton Housing Trends Chart (monthly)
  Dayton Median Price Chart (2002 to 2017-YTD)
  Dayton Median Price vs. Other Local Cities (monthly)

• Fernley - The median home price for Fernley in January, 2017 was $206,000 - a 20% increase over the median Fernley home price in January, 2016. Fernley saw 38 homes sold representing a 15% increase over January, 2016. Months of Inventory is at 3.6 months which is an increase of 14% over February, 2016.
  
  Fernley Housing Trends Chart (monthly)
  Fernley Median Price Chart (2002 to 2017-YTD)
  Fernley Median Price vs. Other Local Cities (monthly)

Additional charts that will help you to better understand where our current markets are in the context of steep market rises and declines seen since 2000, review the two charts below

• Northern Nevada Region "High (Peaks)" and "Low (Valleys)" Prices
• Reno/Sparks Median Price Bubble Chart

If you want more details and a monthly email reminder each month when I post up new housing trends, you can read up and/or subscribe to The Greater Reno-Tahoe Real Estate Report on our web site. NOTE: if you received an email notifying you of this month's report, you are already subscribed and do not need to do anything.

Mitch Argon
CalNeva Realty
800-305-3015