Reno-Tahoe Real Estate Market Update - August, 2010
Below is a quick snapshot of the Reno-Tahoe housing market statistics for key cities/areas. If you want to see the data tables and color charts behind these trends as well as foreclosure and short sale statistics, subscribe to The Greater Reno-Tahoe Real Estate Report.(Yes, it is free)
The big question mark surrounding home sales volume post the Federal Tax Credit Incentives (which required a home to close escrow by June 30, 2010) was would the number of homes sold have a dramatic drop off. Well, the short answer is YES - sales volume has dropped off for most markets on year-year comparison and, more dramatically from June, 2010 sales. The hangover effect from the expiration of these incentives will likely last for 1-3 months which is likely the acceleration of demand the incentives created. With interest rates still incredibly low, prices at attractively affordable levels and, for the most part, stabilizing, sales volume will likely remain fairly constant with 2009/2010 levels.
- Reno - For July, home sales were down 23% from July, 2009 - 277 homes sold (a big drop from June, 2010 at 399 homes sold). July's median sold home price was $190,000 - up 3% from July, 2009. Reno Months of Inventory for August is at 7.6 months - down 14% from August, 2009, and slightly up from prior months.
- Sparks - Sparks homes sold in July totaled 129 (down 8% from one year ago July sales); median home price equals $162,900 - just below the $163,000 recent low seen in March, 2010. Months of Inventory, at 6.4 months, is down 11% from this time last year and remaining stable. Sparks is in a "neutral pricing" zone - prices will remain fairly stable at 5 - 7 months of inventory.
- Carson City - July homes sold totaled 21 which represents a whopping 56% decrease from July, 2009. Carson City's median home price was $172,500 in July - just slightly higher than the most recent low of $167,500 in July, 2009. At 9.4 Months of Inventory, Carson City's key metric of buy/seller market is down 8% from one year ago but still above the 5-7 months range - expect Carson City to see more price decreases as compared to Reno, Sparks, Dayton, and Fernley - all of which have a lower Months of Inventory.
- Carson Valley - Homes sold in July 2010 totaled 44 - a 27% decline over July, 2009. The Carson Valley market has been experiencing strong sales volume over the last year which will eventually help to reduce inventory levels. Carson Valley median home price at 247,500 is 2% above July, 2009. At 10.4 Months of Inventory (a solid bump up from last month), this market, like Carson City, will remain in 'buyer market' territory for a while longer than other local markets.
- Lake Tahoe - With 7 homes sold in July, the Tahoe market (Douglas county only) continues to have an extremely high Months of Inventory (19.8 months), which has a seasonal increase due to the summer 'selling season' when more inventory comes onto the market. 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. July's median home price was $575,000.
- Dayton - Dayton home sales in July, 2010 totaled 17 homes - a 43% decrease from July, 2009. Months of Inventory is 7.2 months - down 13% from one year ago and remaining fairly stable. Median home price, at $130,000, is down 19% from one year ago showing a bit of a yo-yo trend between the 130K and 160K range in recent months.
- Fernley - The median home price for Fernley in July, 2010 was $107,500 - a 10% decrease over the median home Fernley home price in July, 2009. Fernley saw 44 homes sold representing a 23% decrease over July, 2009. Months of Inventory is at 4.2 months which continues to be the lowest in the region and puts Fernley "technically" into a Seller's market with upward pressure on prices.
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Broker - CalNeva Realty