The Northern Nevada real estate market for 2007 was a great one for buyers and one that will want to be quickly forgotten by most sellers, real estate agents, lenders, and others who rely on a steady and predictable volume of real estate transactions.
Buyers were able to "have their way" in all local markets except Lake Tahoe which, surprisingly, shows an increase in median price (year over year) even though the "months of inventory" remains at the highest levels throughout the region.
Here's a summary of the year over year trends for all of 2007 compared to 2006.
Northern Nevada Homes Sold (Transaction Volume)
Transaction Volume Change: 2005 to 2007
The change from 2005 to 2007 gives a more accurate picture of the severity of the drop in transactions. Most markets experienced a peak number of transactions in 2004 or 2005.
Median Price Change
Of more importance to home buyers and owners is the price change from one year to the next. The table below shows the price changes from 2006 to 2007. Each of these markets peaked at different times. To review a monthly median sales price over the last two years, subscribe to the report (link at the bottom of this post).
|Reno||$ 355,000||$ 325,000||-8%|
|Sparks||$ 325,000||$ 285,000||-12%|
|Carson City||$ 317,500||$ 280,000||-12%|
|Carson Valley||$ 395,000||$ 369,675||-6%|
|Dayton||$ 250,450||$ 240,000||-4%|
|Fernley||$ 228,900||$ 220,000||-4%|
|Lake Tahoe||$ 844,500||$ 1,045,000||24%|
Seller Price Reductions
The table below shows the negotiated price as a percent of the listing price by year for each market. Surprisingly, Lake Tahoe has improved (for buyers) while all other market's sellers have made deeper concessions to buyer price demands. Many people I talk to are still quite surprised that the negotiated prices are not substantially lower.
Complete Market Information
If you are interested in seeing the complete report behind these numbers (most of the information is displayed in charts and supporting tables), you should subscribe to The Greater Reno-Tahoe Real Estate Report. I update the report each month and post a short email to all subscribers.
Broker - CalNeva Realty