Reno-Tahoe Housing Market Statistics - November, 2011
Welcome to a summary blog posting of current housing market conditions and metrics for November, 2011. In general, the trends that have been established throughout this year are carrying over into November: 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 Looms on Horizon
In May, 2011, Nevada passed a law (Nevada Assembly Bill 284) with the objective to eliminate lenders from 'improperly or 'illegally' foreclosing on home owners. This law is in response to the 'robo-signing' issues that have been the center of much national media attention. AB 284 has a number of requirements and conditions which lenders are now subject to as part of the foreclosure process in Nevada. One of the immediate effects of this new law (which went into effect on October 1, 2011) is the dramatic reduction in new Notices of Default that were filed in October, 2011. The Notice of Default (NOD) is the first step in the formal foreclosure process and, once filed, allows the bank to foreclose within about 120 days provided the home owner does not bring back payments current or get a short sale approved.
Ticor Title of Nevada regularly publishes a chart (Washoe County Recording Statistics) which outlines the recent trends for foreclosure filings. They have recently updated this chart to show the number of active REO/Foreclosure listings as well. Based on this dramatic drop in NOD filings (September Filings = 613, October Filings = 13), we could see a similar drop in REO listing activity within a 4 to 6 month period from now. With the Foreclosure market comprising about 30-35% of total homes sold each month, this has potential to materially impact our local real estate market inventory and pricing. The effects of AB 284 will become visible in the market. We will only learn the full effects as over the next several months. Some possibilities include a more aggressive (and timely) effort from banks to process and approve short sales, a temporary price stabilization due to the loss of REO inventory, banks processing homes with NODs filed prior to 10/1/11 to fill in the gap (this would be part of the "shadow inventory"), etc. I look forward to following the trend and sharing the information with you to help you best meet your objectives!
Below is a brief summary of each local market:
- Reno - During October, home sales were up 16% from October, 2010 - 338 homes sold. October's median sold home price was $150,000 - 14% below October, 2010. Reno Months of Inventory for November is at 9.9 months - 6% lower than November, 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.
- Sparks - Sparks homes sold in October totaled 147 (up 23% from one year ago October sales); median home price equals $145,000 - 12% lower than the Sparks median home price one year ago. Months of Inventory for Sparks is at 6.0 months, 4% lower than November, 2010. With two months to go in 2010, Sparks has a real possibility of more homes sold this year than during 2005, the peak year which saw 1,896 homes sold.
- Carson City - There were 49 homes sold during October which represents a 75% increase from October, 2010. Carson City's median home price was $136,000 in October - down 18% from prices a year ago and just barely above a recent low of $135,000 in July of this year. At 7.9 Months of Inventory, Carson City's key metric of buy/seller market is down 21% from one year ago but still above the 5-7 months range to achieve price stability.
- Carson Valley - Homes sold in October 2011 totaled 56 - a 37% increase over October, 2010. The Carson Valley median home price at $175,000 is 23% below October, 2010. At 8.2 Months of Inventory (down 18% from the same time one year ago), this market, like Carson City, will remain in 'buyer market' territory for a while longer than other local markets.
- Lake Tahoe - With 14 homes sold in October, the Tahoe market (Douglas County only) was 100% higher than the October, 2010 sales volume. Months of Inventory, at 15.5 months, is 9% lower than November, 2010. The median home price was $618,000. 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 October, 2011 totaled 25 homes - 39% more than what sold in October, 2010. Months of Inventory remains at 7.4 months - 9% lower than one year ago. Dayton median home price, at $92,900 is down 34% from one year ago and does represent a new low for Dayton single family median home prices in this market cycle.
- Fernley - The median home price for Fernley in October, 2011 was $82,100 - a 17% decrease over the median Fernley home price in October, 2010. Fernley saw 43 homes sold representing a 13% increase over October, 2010. Months of Inventory is at 5.8 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.
Have a great day!
Broker - CalNeva Realty