Reno-Tahoe Real Estate Annual Summary - 2012

Posted by Mitch Argon / CalNeva Realty on Saturday, January 19th, 2013 at 1:33pm.

Reno-Tahoe Real Estate 2012 Annual Review

This post will focus primarily on 2012 in the context of years passed. The year was full of substantial changes which I have touched on over the last several months (AB-284 impact, tightening inventory, increasing prices, intense buyer competition at low to medium price ranges, etc). Before getting into the numbers, see below for a few comments:

AB-284 Update: While there will likely be discussion and some possible changes to this law, the real estate community is expecting those changes to be slight. We are seeing a revived increase in the number of Notice of Defaults that are being filed - 237 in December which is about 1/2 of the number being filed pre AB-284. I'll keep you posted on this as news breaks from Carson City!

Mortgage Foregiveness Debt Relief Act: This law (which allows a short sale home owner to NOT be liable for income taxes on the debt forgiven from the lender) was wrapped up in the fiscal cliff bundle. The good news is that it has been extended to December 31, 2013. This will benefit homeowners in financial trouble and it will put more homes on the market as short sales - any inventory is a good thing at this point! Unfortunately, there will continue to be home owners who will need to sell a property that is under water long after the end of this year. I expect Congress will be revisit this law and extended it again by end of year. But we are talking Washington DC lawmakers so... let's just hope for rationale thinking.

2012 Sales Volume Summary

The table below shows the number of homes sold over the last several years by market. The far right column shows 2012 sales as a percent of the 'peak' year from the market frenzy in the early 2000s.


Area200420052006200720082009201020112012**
Reno 4,099 4,175 2,915 2,399 2,497 3,572 3,629 3,995 4,185 100%
Sparks 1,655 1,896 1,195 952 1,077 1,661 1,718 1,903 1,896 100%
Carson City 751 674 499 385 340 385 406 525 597 79%
Carson Valley 1,164 905 613 494 459 552 566 633 755 65%
Dayton 264 288 198 144 176 308 239 332 366 127%
Fernley 863 915 441 312 341 584 479 505 524 57%
Lake Tahoe 177 140 89 74 71 84 91 86 110 62%

** Percent of Peak Home Sales Volume. Years vary based on each market.

If you are a regular reader here, you shouldn't be surprised by the numbers. Many people I talk to in our local market are really surprised to see that Reno, Sparks, and Dayton are so far along in home sale 'recovery'. At the same time, other local markets are moving in the right direction but have not yet caught up.

If you prefer a visual and interactive view, see the interactive chart version.

2012 Median Pricing Summary

While the sales volume picture looks very bright, the pricing picture is not as rosy for home owners. From the table above, you will see that most markets hit their bottom of home sales in 2007, the pricing bottom is showing in 2011 and 2012 for most markets as shown on the table below. Even though the bottom appears to be behind us, the % of Peak (far right column below), is lagging far behind prices from peak years. Most in our industry expect a much longer time, probably several years at best, to reach the peak prices of the early 2000s.

Area20052006200720082009201020112012**
Reno 355,000 340,000 325,000 261,000 190,000 180,000 158,000 170,000 48%
Sparks 325,000 315,000 285,000 237,000 175,000 163,000 146,450 160,000 49%
Carson City 317,500 319,000 280,000 248,000 195,000 175,000 144,900 143,000 45%
Carson Valley 395,000 395,000 369,675 285,000 239,950 218,250 190,000 195,000 49%
Dayton 250,450 269,450 240,000 210,000 158,950 142,000 117,500 115,500 43%
Fernley 228,900 247,000 220,000 166,000 109,950 107,000 87,000 89,000 36%
Lake Tahoe 844,500 915,000 1,045,000 625,000 545,000 570,000 575,000 482,500 46%

** Percent of Peak Year Median Price. Peak years vary based on each market.

If you prefer a visual and interactive view, see the interactive chart version.

If you would like to review more charts covering monthly trends, year over year changes, and other metrics of interest, please follow the links below:

 

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Please feel free to inquire with any questions or comments!

Mitch Argon
Broker
CalNeva Realty
800-305-3015

Mitch Argon
Broker - CalNeva Realty

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