Reno-Tahoe Housing Market Update - December, 2011
Welcome to a summary blog posting of current housing market conditions and metrics for December, 2011. In general, the trends that have been established throughout this year are carrying over into December: strong increases in year over year home sales while pricing continues to decline over the same period in 2010. Below is a summary of each local market and a link back to The Greater Reno-Tahoe Real Estate Report which you can view in full detail online. If you would like to be alerted by email each month, you can also subscribe from the same link.
AB 284 Impact Summary
In last month's blog post, I gave a summary overview of the AB-284 bill and how it has caused an abrupt halt to the filing of Notices of Default throughout the state of Nevada. This phenomenon (soon I will refer to it as a trend) has continued into November. I am including a link to a chart that will show how this situation is unfolding:Ticor Title Washoe County Housing Statistics Summary. Earlier this month, I sat on a panel for a Reno Investor Club meeting. Erin Schiller of Ticor Title was another panel member and I would estimate that 60-70% of the questions from the audience were related to the effects of AB-284. The percentage of bank owned sales remains consistent with where it has been in previous months, however, it is not unreasonable to expect the bank owned inventory to decrease dramatically in the 2nd quarter of 2012.
Below is a brief summary of each local market:
- Reno - During November, home sales were up 29% from November, 2010 - 341 homes sold. November's median sold home price was $154,000 - 14% below November, 2010. Reno Months of Inventory for December is at 6.4 months - 11% lower than December, 2010. As with many local markets, Reno has experienced a strong growth in year over year sales from 2010 during the second half of 2011. This effect is not surprising and likely a residual effect from federal tax credit expirations in June, 2010. At 6.4 Months of Inventory, pricing should remain relatively flat, however, this may not be the case due to the high percentage of distressed properties in the market.
- Sparks - Sparks homes sold in November totaled 149 (up 16% from one year ago November sales); median home price equals $139,900 - 10% lower than the Sparks median home price one year ago. Months of Inventory for Sparks is at 5.5 months, 10% lower than December, 2010. See my comments above (Reno) regarding pricing and months of inventory for Sparks.
- Carson City - There were 48 homes sold during November which represents a 33% increase from November, 2010. Carson City's median home price was $137,000 in November - down 9% from prices a year ago and just barely above a recent low of $135,000 in July of this year. At 7.0 Months of Inventory, Carson City's key metric of buy/seller market is down 24% from one year ago and is now entering the range for a more stable price.
- Carson Valley - Homes sold in November 2011 totaled 48 - a 7% increase over November, 2010. The Carson Valley median home price at $167,500 is 12% below November, 2010 and represents a new low median price for this area since 2005. At 7.7 Months of Inventory (down 18% from the same time one year ago), this market is moving closer towards more stable pricing but is likely still a ways off.
- Lake Tahoe - With 4 homes sold in November, the Tahoe market (Douglas County only) was 75% lower than the November, 2010 sales volume. Months of Inventory, at 16.6 months, is 4% higher than December, 2010. The median home price was $490,000. Out of the 4 properties sold, three were 'distressed' as short sales and foreclosures - a much higher % of sales than is typical for Tahoe. 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.
- Dayton - Dayton home sales in November, 2011 totaled 26 homes - 63% more than what sold in November, 2010. Months of Inventory is at 6.6 months - 25% lower than one year ago. Dayton median home price, at $103,000 is down 25% from one year ago.
- Fernley - The median home price for Fernley in November, 2011 was $84,000 - a 24% decrease over the median Fernley home price in November, 2010. Fernley saw 37 homes sold representing a 10% decrease over November, 2010. Months of Inventory is at 5.5 months which is the lowest in the region. Of note in the Fernley market is inventory levels have been rising at a more rapid rate than other local markets which, of course, could bring some additional downward price pressure in the near term, however the Months of Inventory continues to remain fairly stable.
Have a wonderful Holiday Season!
Broker - CalNeva Realty