Reno-Tahoe Real Estate Market Snapshot - May, 2012
Welcome to the May, 2012 market update. The local markets are continuing with the recent trends of decreased inventory levels, strong buyer activity overall (creating a very competitive market for buyers under $200,000 priced homes), and stable to slight price increases in the lower priced segement (under $150,000) in the markets. Assembly Bill 284 continues to be a factor, however, the biggest impact from the bill is yet to be seen as outlined in the next paragraph.
AB-284 (Assembly Bill 284) Update - For more background on Assembly Bill - 284, feel free to reference previous blog posts (November 2011 Market Update). For this month's update, (courtesy of the Ticor Title Washoe County Housing Statistics Summary) the trend continues. Notice of Trustee Sale count continues to trend down in a meaningful way which likely indicates those properties with a Notice of Default filed and making their way through the foreclosure process are beginning to dwindle; and 2) REO Listings while trending down slightly are not materially different than where they were one year ago. While this trend has taken quite some time to develop, the material decrease in Notice of Sale volume will soon be mirrored in REO inventory. With the markets tightening up already, the decreased inventory will further stabilize pricing. BEWARE: this has the potential to create an artificial "bottom" because the distressed properties are simply "damming up" as future REOs or short sale transactions. One way or anther, eventually, this inventory will make its way onto the market.
Below is a brief summary of each local market with year over year details:
- Reno - During April, home sales were up 28% from April, 2011 - 350 homes sold. April's median sold home price was $153,850 - 6% below April, 2011 but very consistent with the flat trend line over the last 12 months. Reno Months of Inventory for May is at 5.2 months - 27% lower than May, 2011.
- Sparks - Sparks homes sold in April totaled 169 (up 13% from one year ago April sales); median home price equals $149,000 - up 6% from Spark's median home price of one year ago. Months of Inventory for Sparks is at 4.5 months, 28% lower than May, 2011 which is consistent with the market experiences mentioned earlier in this blog post. Home inventory levels for Sparks (and Reno) are also trending down from levels of one year ago.
- Carson City - There were 53 homes sold during April, 2012 which represents a 33% increase from April, 2011. Carson City's median home price was $140,000 in April - up 1% from prices a year ago. Carson City Months of Inventory is at 5.8 - this is the lowest level since 2006 and indicates the gradual move towards more price stability in Carson City.
- Carson Valley - Homes sold in April 2012 totaled 70 - a 52% increase over April, 2011. The Carson Valley median home price at $197,000 is 11% above April, 2011. At 7.4 Months of Inventory (down 13% from the same time one year ago), this market is moving closer towards more stable pricing but is likely still a ways off compared to other local markets in the region. This being said, however, there is clear competition among buyers in the lower price segments of this market as well.
- Lake Tahoe - With 7 homes sold in April, the Tahoe market (Douglas County only) was equal to the April, 2011 sales volume. Months of Inventory, at 15.8 months, is 28% higher than May, 2011. The median home price was $485,000. 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.
- Dayton - Dayton home sales in April, 2012 totaled 35 homes - the same as what sold in April, 2011. Months of Inventory is at 5.3 months - 26% lower than one year ago. Dayton median home price, at $100,000, is down 36% from one year ago. Dayton inventory levels are also trending down to levels not seen since late 2009.
- Fernley - The median home price for Fernley in April, 2012 was $80,750 - a 1% increase over the median Fernley home price in April, 2011. Fernley saw 50 homes sold representing a 25% increase over April, 2011. Months of Inventory is at 5 months and now in the range with Reno and Sparks. Based on affordability, months of inventory, and what we are seeing in Reno/Sparks, I would expect the median price quickly return to the mid $80K range and stay there, if not increase shortly.
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Broker - CalNeva Realty