Reno-Tahoe Housing Update - February, 2013
Last month, I posted an annual recap of the market. This month, we'll get back into the specific summaries on a market by market basis. In general, the theme remains the same: lower inventories, continued high buyer demand, and increasing prices. Each of the local markets will have different characteristics but all are generally consistent on the latter traits.
We are seeing an increase in the Notice of Defaults being filed by the banks to start the foreclosure process. I am including a chart from Ticor Title that shows these numbers in the context of the impact from AB-284 (October, 2011) and how this has slowly recovered to about 1/2 of what it was prior to the AB-284 impact. Here is the Foreclosure Activity Chart.
Below is a brief summary of each local market with year over year details:
- Reno - During January, home sales were down 11% to 257 homes. This decrease is due to a lack of inventory as evidenced by increasing prices. January median sold home price came in at $190,000 - 34% above January, 2012. Reno Months of Inventory for February is at 4.1 months - 31% lower than February, 2012 and continuing a downward trend each month. On the distressed property front for January, 2013, Reno had 103 short sales (40% of the total) and 24 REO sales (9% 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 January totaled 98 (down 34% from one year ago January sales); median home price was $169,500 - up 34% from Spark's median home price of one year ago. Months of Inventory for Sparks is down to 3.6 months, 31% lower than February, 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. Again, distressed sales in Sparks totaled 55% of the total market with 43% as short sales (42 homes) and 12% as foreclosure sales (12 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 28 homes sold during January, 2013 which represents a 33% decrease from January, 2012. Carson City's median home price was $144,500 in January - 14% higher than the median price a year ago. Carson City Months of Inventory is at 4.8 months showing a decline of 26% from one year ago. 36% of Carson City sales in January were distressed - 8 short sales (29%) and 7 foreclosure sales (7%). See Carson City Housing Trends on our interactive chart.
- Carson Valley - Homes sold in January 2013 totaled 54 - a 20% increase over January, 2012. The Carson Valley median home price at $242,950 is 49% higher than the January, 2012 median price (note: this % increase represents a spike for one month and is more than twice that of any % increase over the last several years). Months of Inventory is at 4.8 months and down 42% from the same time one year ago. The Carson Valley has fewer distressed sales than other areas (except Tahoe); total distressed sales for January were 33% of the total: 13 short sales (24%) and 5 REOs (9%). For a quick view of these trends, visit the Carson Valley real estate trends chart.
- Lake Tahoe - With 8 homes sold in January, the Tahoe market (Douglas County only) was up 60% from the January, 2012 sales volume. Months of Inventory, at 10.7 months, is 38% lower than February, 2012 and is at its lowest level since 2006 when I began tracking this metric! The median home price was $414,000. 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. Tahoe saw no REO sales and two Short Sale in January. See Tahoe Real Estate by Charts.
- Dayton - Dayton home sales in January, 2013 totaled 21 homes - a 5% decrease over January, 2012. Months of Inventory is at 4.5 months - 26% lower than one year ago. Dayton median home price, at $114,900, is up 18% from one year ago. During January, Dayton saw 8 short sale and 5 REO sale for a total of 62% of the total sales. See Dayton Real Estate Interactive Charts here.
- Fernley - The median home price for Fernley in January, 2013 was $96,500 - an 8% increase over the median Fernley home price in January, 2012. Fernley saw 29 homes sold representing a 31% decrease over January, 2012. Months of Inventory is at 4.4 months. 41% of Fernley January sales were distressed: 7 short sales (24%) and 5 foreclosures (17%).
If you want more details and the color charts used to prepare this blog post, you can view from one of two formats:
In summary... If you are a home buyer, you need to update your expectations to include the likelihood of being in a competitive offer situation, homes selling quickly, and, in some cases, homes selling for more than the list price. If you are a home seller, the market continues to work towards your advantage - something that you have not enjoyed for several years in this area.
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!
Broker - CalNeva Realty