Northern Nevada Real Estate Trends 2007 Recap

Posted by Mitch Argon / CalNeva Realty on Saturday, January 12th, 2008 at 6:09pm.

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)

City 2006 2007 % Change
Reno 2,915 2,399 -18%
Sparks 1,195 952 -20%
Carson City 499 385 -23%
Carson Valley 613 494 -19%
Dayton 198 144 -27%
Fernley 441 312 -29%
Lake Tahoe 89 74 -17%

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.

City 2005 2007 % Change
Reno 4,175 2,399 -43%
Sparks 1,896 952 -50%
Carson City 674 385 -43%
Carson Valley 905 494 -45%
Dayton 288 144 -50%
Fernley 915 312 -66%
Lake Tahoe 140 74 -47%

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).

City20052007% Change
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.

City 2004 2005 2006 2007
Reno 98.0% 98.0% 96.7% 95.6%
Sparks 99.0% 98.7% 97.4% 96.7%
Carson City 98.7% 98.1% 96.9% 96.0%
Carson Valley 98.1% 97.9% 97.4% 96.2%
Dayton 98.9% 98.9% 97.8% 95.9%
Fernley 102.3% 101.5% 99.8% 97.4%
Lake Tahoe 94.6% 92.4% 92.1% 93.1%

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.

Mitch Argon
Broker - CalNeva Realty

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