Reno-Tahoe Real Estate Market Update - September, 2009
A few insights into the local Reno-Tahoe real estate market conditions - things have changed quite a lot this year and September appears to be no exception. If you are not a subscriber to The Greater Reno-Tahoe Real Estate Report, you can find complete details and charts behind the market statistics outlined below. Feel free to subscribe to The Greater Reno-Tahoe Real Estate Report here.
Reno - For August, home sales are up 53% over August, 2008. August median sold home price was $185,000 - down 29% form August, 2008 but the third month above the most recent low of $180,000 in May, 2009 - if this continues, we may have seen the bottom - too early to call! Throw in a 13% decrease in inventory of September, 2008 levels and September Months of Inventory is at 8.6 months - down 36% from September, 2008 and moving steadily towards a balanced market.
Sparks - Similar to Reno but in slightly better shape, Sparks homes sold in August total 142 (up 51% over one year ago); median home price equals $170,000 - stable for the last four months but down 25% from one year ago. Months of Inventory, at 6.9 months, is down 39% from this time last year and lower than I have seen since January, 2007 - 7.9 months.
Carson City - August was a strong month for homes sold - 32 homes and a 33% increase over August 2008. Carson City's median home price was $186,000 in August - still up from a recent low of 168,000 in June. At 10.6 Months of Inventory, however, this market is still moving slower towards reaching a balanced market than Reno, Sparks, or Dayton.
Carson Valley - Homes sold in August 2009 totalled 51 - a 28% increase over August, 2008. Carson Valley median home price at 240,000 is 9% below August, 2008. At 13.1 Months of Inventory, this markets relatively flat home sales on a year to date basis keeps the market, in general, in strong 'buyer market' territory. Of personal note, however, I have been seeing an increase in activity among people relocating to this area from California and other Southwest metro markets.
Lake Tahoe - With 8 homes sold in August, the Tahoe market (Douglas county only) continues to have an extremely high Months of Inventory (22.1 months). 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 median home price was $466,000.
Dayton - Year to date homes sales in Dayton through August 31, 2009 are HIGHER than all homes sold in 2008. This activity has pushed the Months of Inventory down to 8.0 months - down 50% from one year ago. Median home price, at $150,000, is down 27% from one year ago. Dayton will be reaching a pricing bottom very soon if this trend continues and/or stabilizes in the next few months. At the current home sale pace, Dayton will sell more homes in 2009 than in 2005 - the recent high water mark.
Fernley - Fernley will be the first local market to hit bottom and stabilize. Fernley Months of Inventory is down to 5.9 months (63% lower than September, 2008) - which represents stable pressure on pricing. The Fernley median home price for July was $113,000 - down 25% from one year ago but slightly up from a recent low of $104,000 in May, 2009. Fernley had 57 homes sold in July - a 97% increase over one year ago.
As you may know, the federal first time home buyer tax credit will expire on November 30, 2009. If no other programs or program extensions are introduced, this will decrease some demand in the markets. In my view, however, there is still incentive enough for many first time home buyers to take the plunge as they will actually be paying less in mortgage payments than rent (before tax deduction benefits) in many cases.
Broker - CalNeva Realty