Reno-Tahoe Housing Price Rises Continue - April, 2013
Last month, I did some comparisons to the current housing market to the bubble years of 2004-2005. The trend continues as the market is plentiful with buyers and not enough home sellers. A few weeks ago, one of our agents submitted an offer for a home buyer client we are helping and, after bidding $40,000, over the list price, the offer was rejected and we learned that there were over 90 offers on the property. Crazy? Insane? Irrational Exuberance? You could use any one of these descriptors to sum up some of what we are currently experiencing in the market.
I have enhanced a chart in The Greater Reno-Tahoe Real Estate Report ("Recent Peak to Trough Median Price Summary on page 8 of the PDF version - see below) to now show the "new peak" in median price by each market and the % gain over the "trough" median prices. You may want to take a look. All of our local markets hit their bottom median price in the first half of 2012. Since then, the % increase in median price ranges from 37% to 64% for all markets excluding Tahoe!
Below is a brief summary of each local market with year over year details:
- Reno - During March, home sales were down 5% from March of last year at 342 homes. This decrease is due to a lack of inventory as evidenced by increasing prices. March median sold home price came in at $207,375 - 39% above March, 2012. Reno Months of Inventory for March is at 4.4 months - 22% lower than March, 2012. On the distressed property front for March, 2013, Reno had 99 short sales (29% of the total) and 29 REO sales (8% of the total). For a visual review of these trends, visit our interactive charts - use the "Reno" menu at the top of the page for different chart options; these charts are interactive - click the Help menu from the charts site to see how.
- Sparks - Sparks homes sold in March totaled 139 (down 15% from one year ago March sales); median home price was $175,000 - up 15% from Spark's median home price of one year ago. Months of Inventory for Sparks is down to 3.7 months, 27% lower than March, 2012 which is consistent with the market experiences mentioned earlier in this blog post. Both Reno and Sparks will continue to see rising prices until inventory builds and allows better balance between supply and demand. Currently, there are multiple qualified buyers for every reasonably priced listing under the $300,000 price range. A striking number for the Sparks market is the average SOLD home price was 100.1% of the average list price; In 2005, this number was 98.7% which, by comparison, shows how heated the current market is. Again, distressed sales in Sparks totaled 48% of the total market with 41% as short sales (57 homes) and 7% as foreclosure sales (10 homes). To see how the mix of short sales and foreclosures has reversed over time based on AB-284 impact, check out this chart.
- Carson City - There were 37 homes sold during March, 2013 which represents a 31% decrease from March, 2012. Carson City's median home price was $169,900 in March - 17% higher than the median price a year ago. Carson City Months of Inventory is at 5.3 months showing a decline of 19% from one year ago. 49% of Carson City sales in March were distressed - 15 short sales (41%) and 3 foreclosure sales (8%). See Carson City Housing Trends on our interactive chart. While Carson City has lagged Reno/Sparks in rebounding, this market is experiencing the same phenomenon.
- Carson Valley - Homes sold in March 2013 totaled 57 - a 5% decrease over March, 2012. The Carson Valley median home price at $245,900 is 39% higher than the March, 2012 median price and represents a recent high. Months of Inventory is at 5.6 months and down 31% from the same time one year ago. The Carson Valley has fewer distressed sales than other areas (except Tahoe); total distressed sales for March were 22% of the total: 6 short sales (11%) and 6 REOs (11%). For a quick view of these trends, visit the Carson Valley real estate trends chart.
- Lake Tahoe - With 13 homes sold in March, the Tahoe market (Douglas County only) was up 8% from the March, 2012 sales volume. Months of Inventory, at 9.7 months, is 45% lower than March, 2012 and is continuing downward. The median home price was $1,040,000 reflecting more high end propery purchases than in the prior two months. 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. Tahoe saw 1 REO sale and two Short Sales in March. See Tahoe Real Estate by Charts.
- Dayton - Dayton home sales in March, 2013 totaled 26 homes - a 21% decrease over March, 2012. Months of Inventory is at 4.3 months - 29% lower than one year ago. Dayton median home price, at $113,000, is up 27% from one year ago. During March, Dayton saw 10 short sale and 5 REO sales for a total of 58% of the total sales. See Dayton Real Estate Interactive Charts here.
- Fernley - The median home price for Fernley in March, 2013 was $114,900 - a 61% increase over the median Fernley home price in March, 2012. Fernley saw 47 homes sold representing an 18% increase over March, 2012. Months of Inventory is at 3.9 months. 28% of Fernley March sales were distressed: 8 short sales (17%) and 5 foreclosures (11%). Note that in March of 2012, total Fernley distressed sales was 78% of the total (31 total properties).
If you want more details and the color charts used to prepare this blog post, you can view from one of two formats:
There are many factors at play in the current market: plenty of cash investors, the prospect of rising interest rates from the lows enjoyed in recent years, the looming distressed property "shadow inventory" that is yet to work its way through the market, and more.
I hope you find this information useful. If we can help you or anyone you know who needs professional guidance buying or selling a home, please give a call or drop an email!
Broker - CalNeva Realty