Reno-Tahoe Real Estate Trends - July, 2011
Mid Year - 2011 Report
Time Flies! Here we are at just past the mid point of 2011. Time to go back and review annual plans, personal goals, and, oh yes, new year resolutions.... I thought I would give a brief summary of how the local real estate markets are looking based on the first six months of 2011 - compared to 2010. The most significant factor to consider when reviewing the 1st half of 2011 to 2010 is the lack of any broad based federal tax incentives for the 1st time (and repeat) home buyer.
In a nutshell, sales volumes are on pace for all local markets (except Lake Tahoe) to meet or exceed sales volumes for 2010. If you are a regular reader of this blog or The Greater Reno-Tahoe Real Estate Report, you should know that home prices have slipped during the first half of this year (compared to 2010) - on average about 10% for most local markets. For a market by market summary, see the table below:
Median Price Comparison
Sales Volume Comparison
Note that for June, 2011 every market had a decrease of about 10%, on average, for home sales volume compared to June, 2010. The 1st Time HomeBuyer "spike" of 2010 is not equalled in 2011. Even so, sales are likely to meet or exceed 2010 levels!
The rest of this blog post covers summary market statistics for Reno, Sparks, Carson City, Carson Valley (Minden/Gardnerville/Genoa), Dayton, Fernley, and Lake Tahoe (Douglas County only) for July, 2011. This is an extract from The Greater Reno-Tahoe Real Estate Report which CalNeva Realty publishes monthly. The full report contains easy to read charts and more supporting data than this summary and can be found here.
- Reno - During June, home sales were down 11% from June, 2010 - 354 homes sold. June's median sold home price was $155,000 - an 11% drop from June, 2010 and about $11K above last month's recent low. Reno Months of Inventory for July is at 7.3 months - the same as July, 2010.
- Sparks - Sparks homes sold in June totaled 165 (down 12% from one year ago June sales); median home price equals $142,000 - 16% lower than the Sparks median home price one year ago. Months of Inventory for Sparks is at 6.1 months. If the Reno pricing of the last 2-3 months stabilizes, I would expect Sparks to settle in $5,000 to $10,000 below the Reno median price number - this trend is being confirmed with June numbers.
- Carson City - There were 45 homes sold during June which represents a 12% decrease from June, 2010. Carson City's median home price was $158,000 in June - down 10% from prices a year ago. At 8.3 Months of Inventory, Carson City's key metric of buy/seller market is up 1% 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 June 2011 totaled 44 - a 15% decrease over June, 2010. Carson Valley median home price at $217,000 is 2% below June, 2010. At 9.7 Months of Inventory (down 1% from the same time one year ago), this market, like Carson City, will remain in 'buyer market' territory for a while longer than other local markets.
- Lake Tahoe - With 4 homes sold in June, the Tahoe market (Douglas county only) was 50% lower than the June, 2010 sales volume. Months of Inventory, at 17.2 months is 14% lower than July, 2010. The median home price was $2.8M. 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. Of note in Tahoe is the fact that of the 4 homes sold - two were in excess of $5M - one topping $9M!
- Dayton - Dayton home sales in June, 2011 totaled 27 homes - 7% fewer than what sold in June, 2010. Months of Inventory is 7.0 months - equal to one year ago. Median home price, at $112,000, is down 32% from one year ago.
- Fernley - The median home price for Fernley in June, 2011 was $86,000 - a 21% decrease over the median Fernley home price in June, 2010. Fernley saw 50 homes sold representing a 6% increase over June, 2010 - bucking the "1st time home buyer incentive" demand. Months of Inventory is at 5.7 months which continues to be the lowest in the region and puts Fernley "technically" into a price netrual market, however Fernley's Months of Inventory has been steadily climbing this year on a year-over-year basis which directly supports the lower median prices.
To see the charts and tables behind this summary, subscribe to The Greater Reno-Tahoe Real Estate Report, sign up here to see a lot more detail and get a notice each month when the report is updated.
Broker - CalNeva Realty