Reno-Tahoe 2010 Real Estate Market Summary

Posted by Mitch Argon / CalNeva Realty on Tuesday, January 18th, 2011 at 1:16pm.

Reno-Tahoe Real Estate Metrics - January, 2011

Happy New Year! (if I can still get away with saying that...). This month's update includes some annual perspective on 2010 and how local markets rate on a year over year basis - especially with reference to the recent "peak years" of 2004 and 2005.

Number of Homes Sold

Scan the table below and you will see that transaction volume is quite strong in Reno/Sparks (both compared to peak years in 2004 and 2005 as well as year over year) while most other markets are substantially off of the peak years and showing modest year over year gains (although Fernley and Dayton are negative on 2010 gains over 2009).

City% of Peak Volume% Change - 2009 to 2010
Carson City53%5%
Carson Valley49%3%
Lake Tahoe51%8%

Median Price Drops

Price decreases in 2010 were less steep than what we experienced in 2007 - 2009 with some variation between all local markets. Fernley likely reached its bottom in 2010 and Reno/Sparks has been stable over the last several months. The table below summarizes the % change from the peak years (2004 or 2005 depending on the market) and 2010 as well as the price change between 2009 to 2010.

City% of PEAK Median Price% Change - 2009 to 2010
Carson City55%-10%
Carson Valley 55%-9%
Lake Tahoe52%5%

And now for monthly summaries...

* Reno - For December, home sales were up 20% from December, 2009 - 324 homes sold - a pretty big jump year over year as well as November's count of 264. December's median sold home price was $173,000 - a 4% drop from December, 2009. Reno Months of Inventory for January is at 6.7 months - up 5% from January, 2009, and slightly lower from prior months. Again, all metrics for Reno are fairly stable.

* Sparks - Sparks homes sold in December totaled 150 (up 4% from one year ago December sales); median home price equals $154,950 - which is a new low in the 'current market'. I don't think this is the beginning of a trend as Months of Inventory has dropped further to 5.9 months. Sparks continues to be in a "neutral pricing" zone - prices will remain fairly stable at 5 - 7 months of inventory.

* Carson City - December homes sold totaled 39 which represents an 18% increase from December, 2009. Carson City's median home price was $185,000 in December - up 5% from prices a year ago. At 8.5 Months of Inventory, Carson City's key metric of buy/seller market is up 1% 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 December 2010 totaled 64 - a 33% increase over December, 2009. Carson Valley median home price at $225,000 is 15% below December, 2009. At 8.5 Months of Inventory, this market, like Carson City, will remain in 'buyer market' territory for a while longer than other local markets. The Months of Inventory at 8.5 months, however, is the lowest it has been since 2006 when I began tracking this particular metric.

* Lake Tahoe - With 3 homes sold in December, the Tahoe market (Douglas county only) continues to have an extremely high Months of Inventory (12.3 months) - down 27% from January, 2009 and continuing to show improvement. 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. December's median home price was $488,150.

* Dayton - Dayton home sales in December, 2010 totaled 21 homes - a 11% decrease from December, 2009. Months of Inventory is 8.4 months - up 36% from one year ago and remaining steady due to a lower transaction volume than seen in 2009. Median home price, at $113K, is down 11% from one year ago and represents a new low for this market since the peak years of 04 and 05.

* Fernley - The median home price for Fernley in December, 2010 was $97,000 - a 3% decrease over the median home Fernley home price in December, 2009 and within the range that prices have been recorded over the last 12 months. Fernley saw 32 homes sold representing a 41% decrease over December, 2009. Months of Inventory is at 4.9 months which continues to be the lowest in the region and puts Fernley "technically" into a Seller's market with upward pressure on prices (as is shown by current prices compared to a year ago).

Want to see the charts and tables behind this summary? If you are not a subscriber to The Greater Reno-Tahoe Real Estate Report, sign up (at the top of this blog post) so you can review the charts and graphs behind the summary in this blog post.

Mitch Argon
CalNeva Realty

Mitch Argon
Broker - CalNeva Realty

2 Responses to "Reno-Tahoe 2010 Real Estate Market Summary"

Janea Logan wrote: Does this mean the volume and price for houses in Reno will continue to stabilize. Im trying to buy a home in Reno, however, I find the banks are unreasonable in short sales and are asking Seller to come up with money as well. In my current contract, the Seller cannot come up with the money. Should I go after a foreclosure and deal directly with the bank so I dont have to wait for an answer on a short sale? And are foreclosure prices higher?

Posted on Wednesday, January 19th, 2011 at 3:50pm.

Mitch Argon wrote: Janea - things are definitely moving towards more stability - higher volume of home sales and a declining 'decrease' on year over year prices. Re: foreclosures and short sales, I have seen clients get pretty good value in both types of transactions. The foreclosure buying experience is quicker and provides more certainty (less stress and waiting) for most home buyers. Thanks for checking in!

Posted on Wednesday, January 19th, 2011 at 4:17pm.

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