I just updated the Greater Reno-Tahoe Real Estate Report with new data for January 2008 sold homes, pricing, and February 2008 inventory levels. With the steady stream of about 10 new Reno/Sparks foreclosure (or short sale) listings every day in the region, it does not come as any surprise that the Reno area market fundamentals continue to shift towards the home buyer's advantage.
Greater Reno-Tahoe Housing Highlights
This post compares the highs and lows among the different areas. If you want to review in-depth data on any particular market, you may want to consider reviewing/subscribing (free) to The Greater Reno-Tahoe Real Estate Report that I publish monthly.
Buyer or Seller Market - Month's Inventory
Let's start with Months of Inventory, which is the key indicator behind the "type of market" we are in - buyer or seller market. Compared to February, 2007 (to eliminate any seasonal fluctuations), each market in Northern Nevada has seen an increase in Months Inventory. The Dayton market is up to 17.1 months for February which is a 48% increase of Feb 2008. Fernley is not far behind with an increase of 39% from this time last year. The market which had the smallest increase from last year is Carson Valley (Minden, Gardnerville) where the month's inventory rose only 9%.
In absolute terms, Sparks NV continues to be the closest to reaching a balanced market at 9.7 months of inventory. Considering a 'balanced market' (where supply and demand are evenly matched) is in the 4-6 month range, the market for home sellers will continue to be a difficult one. Not really any new news regarding market reversals here.
While pricing is down in all local markets, Carson City and Dayton appear to be taking the hardest hit. The Carson City median home price was down 21% from one year ago to a three year low of $237,000. Meanwhile, Dayton median home prices dropped 11% from January, 2007 to a new low of $218,000 which represents about a 29% drop from the median price peak in July, 2006.
Homes Sales Volume
Reno (108 homes sold), Sparks (49 homes sold), Carson City (22 homes sold), Carson Valley (23 homes sold), and Fernley (14 homes sold) all saw the lowest number of homes sold in one month over the last three years. While Dayton escaped this distinction, only 7 homes were sold in Dayton in January (it's recent low was 6 homes sold in September, 2007). Most of these markets saw their peak in homes sales volume in the summer months of 2005 just a few months before the markets began to turn (the first sign of a turning market is building inventory - this occurred in about August of 2005).
Selling in this market? Challenging to say the least.
Buying in this market? Make sure you have every advantage in identifying the best property (for future resale value) in your desired area and price range and ensure you are able to buy at a price below the low range of recent comparable sales - you may need the extra cushion with the continued downward pressure on home prices.
Want to comment on your market experience? Leave a comment below.
If you want to research any of this market information further, you may find the following links useful:
- Recent Home Sold List and Prices (updated - January, 2008 sales)
- Current MLS Listings (updated daily)
Broker - CalNeva Realty