Reno-Tahoe Housing Market Spotlight - October, 2012
Below is a summary recap of housing market conditions throughout the Reno-Tahoe region for September/October 2012. We are continuing to see tight inventories and stable to increasing prices over the recent months.
Bank Foreclosure Update - Ticor Title publishes a chart each month that shows trends for Notices of Default, Notices of Sale, and Bank/Foreclosure Inventory. If you are a regular reader of this blog, you know that the Notices of Default dropped significantly in October, 2011 due to the AB-284 law going into effect. For several months, it has been appearing as though this law would have a long term impact resulting in REO inventory levels dropping to about 10% of what they were prior to October, 2011. Surprisingly, the Notice of Default count for Washoe County, which we use as a general indicator for the region, was substantially down from the recent upward trend. It appears as though we will need more time to establish a true trend line for this leading indicator of foreclosure activity. The foreclosure sales as a percentage of all sales is in the 12% range for Washoe County which is down from the 35-40% rangewe were seeing earlier this year! Review the Ticor Title Summary Here.
Below is a brief summary of each local market with year over year details:
- Reno - During September, home sales were down 16% from September, 2011 - 318 homes sold (keep in mind, this number is well below the market demand based on supply (inventory) constraints). September median sold home price was up to $186,000 - 20% above September, 2011. Reno Months of Inventory for October is at 5.6 months - 31% lower than October, 2011 and holding steady for 5 straight months now. On the distressed property front for September, 2012, Reno had 133 short sales (42% of the total) and 37 REO sales (12% of the total).
- Sparks - Sparks homes sold in September totaled 149 (down 15% from one year ago September sales); median home price equals $160,000 - up 11% from Spark's median home price of one year ago but surprisingly down from last month at $170,000 - don't think this is a new trend starting though. Months of Inventory for Sparks is 4.7 months, 30% lower than October, 2011 which is consistent with the market experiences mentioned earlier in this blog post.
- Carson City - There were 41 homes sold during September, 2012 which represents a 5% increase from September, 2011. Carson City's median home price was $134,000 in September - 11% lower than prices a year ago. Carson City Months of Inventory is at 5.2 - this indicator continues to trend down quite rapidly and is pointing towards a stable to slightly increasing market.
- Carson Valley - Homes sold in September 2012 totaled 68 - a 55% decrease over September, 2011. The Carson Valley median home price at $210,500 is 22% higher than the September, 2011 median price. At 6.8 Months of Inventory (down 31% from the same time one year ago), this market continues to move closer towards more stable pricing but is likely still a ways off compared to other local markets in the region.
- Lake Tahoe - With 10 homes sold in September, the Tahoe market (Douglas County only) was equal to sales from the September, 2011 sales volume. Months of Inventory, at 16.2 months, is 20% lower than October, 2011. The median home price was $380,000. 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 September, 2012 totaled 30 homes - a 15% increase over September, 2011. Months of Inventory is at 4.8 months - 39% lower than one year ago. Dayton median home price, at $118,900, is down 10% from one year ago - like Sparks this is more than likely a one month abberation - not the beginning of a trend.
- Fernley - The median home price for Fernley in September, 2012 was $94,000 - a 7% increase over the median Fernley home price in September, 2011. Fernley saw 37 homes sold representing no change over September, 2011. Months of Inventory is at 4.8 months. Based on affordability, months of inventory, and what we are seeing in Reno/Sparks, I would expect the median price to slightly rise and stay in the $90 to $100K range for the remainder of this year.
If you want more details and the color charts used to prepare this blog post, you can view from one of two formats:
Have a question or comment on market conditions? Leave a comment below and I'll answer and/or publish your comment for others to see and learn from!
Broker - CalNeva Realty