Reno-Tahoe Real Estate Update - November, 2012
Below is a summary recap of housing market conditions throughout the Reno-Tahoe region for October/November 2012. We are continuing to see tight inventories and stable to increasing prices over the recent months. The number of foreclosure homes being sold has settled into a range which is about 1/3 of what was selling prior to the market impact of Assembly Bill 284 (AB-284) which went into effect in October, 2011. Here is a link to the Ticor Title charts showing the trends for foreclosure activity in Washoe County.
Another factor that is likely contributing to the decrease in available homes for sale is the expiration of The Mortgage Forgiveness Debt Relief Act scheduled for December 31, 2012. Many 'would be' short sale sellers are likely not entering the market to sell the home due to the tax liability they would face based on the expiration of The Mortgage Forgiveness Debt Relief Act. Of course, with short sale escrows averaging 120 days, discouraged prospective sellers have not been entering the market now for a few months. Frankly, I am amazed this has not already been extended by the federal government as a tactical election move and I will be truly flabbergasted if it actually expires with no further legislation in this area.
Below is a brief summary of each local market with year over year details:
- Reno - During October, home sales were up 6% from October, 2011 - 357 homes sold (keep in mind, this number is well below the market demand based on supply (inventory) constraints). October median sold home price came in at $185,000 - 23% above October, 2011 and stable from the last three months. Reno Months of Inventory for November is at 5.3 months - 29% lower than November, 2011 and decreasing slightly each month. On the distressed property front for October, 2012, Reno had 145 short sales (41% of the total) and 37 REO sales (10% of the total). For a visual review of these trends, visit our new interactive charts - use the "Reno" menu at the top of the page for different chart options; remember, you can interact with the charts - click the Help menu from the charts site to see how.
- Sparks - Sparks homes sold in October totaled 170 (up 16% from one year ago October sales); median home price was up to equals $174,950 - up 21% from Spark's median home price of one year ago and about where you'd expect it to be compared to Reno's median price. Months of Inventory for Sparks is 4.2 months, 34% lower than November, 2011 which is consistent with the market experiences mentioned earlier in this blog post. Again, distressed sales in Sparks totalled 55% of the total market with 41% as short sales (69 homes) and 14% as foreclosure sales (24 homes). To see how the mix of short sales and foreclosures has reversed over time, check out this chart.
- Carson City - There were 39 homes sold during October, 2012 which represents a 20% decrease from October, 2011. Carson City's median home price was $129,000 in October - 5% lower than prices a year ago. Carson City Months of Inventory is at 5.2 and has been in the range of 5.0 to 5.3 for the last four months. 57% of Carson City sales in October were distressed - 17 short sales (44%) and 5 foreclosure sales (13%). See Carson City Housing Trends on a chart!
- Carson Valley - Homes sold in October 2012 totaled 73 - a 30% increase over October, 2011. The Carson Valley median home price at $210,900 is 21% higher than the October, 2011 median price. Months of Inventory is at 6.3 months and down 28% from the same time one year ago. The Carson Valley has fewer distressed sales than other areas (except Tahoe); total distressed sales for October were 35% of the total: 18 short sales (25%) and 7 REOs (10%). For a quick view of these trends, visit the Carson Valley real estate trends chart.
- Lake Tahoe - With 11 homes sold in October, the Tahoe market (Douglas County only) was down 21% sales from the October, 2011 sales volume. Months of Inventory, at 14.9 months, is 11% lower than November, 2011 and continuing to trend down on a year over year basis. The median home price was $762,000. 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. Tahoe saw one REO sale and one Short Sale in October. See Tahoe Real Estate by Charts.
- Dayton - Dayton home sales in October, 2012 totaled 25 homes - the same as October, 2011. Months of Inventory is at 4.8 months - 38% lower than one year ago and unchanged from last month. Dayton median home price, at $125,000, is up 35% from one year ago. During October, Dayton saw 9 short sale and 1 REO sale for a total of 40% of the total sales. See Dayton Real Estate Interactive Charts here.
- Fernley - The median home price for Fernley in October, 2012 was $96,999 - an 18% increase over the median Fernley home price in October, 2011. Fernley saw 48 homes sold representing a 12% increase over October, 2011. Months of Inventory is at 4.7 months. 60% of Fernley October sales were distressed: 22 short sales (46%) and 7 foreclosures (15%). While Fernley leads the region is distressed sales as a percentage of total sales, it is worth noting that a year ago the total volume of Fernley distressed sales was 77%.
If you want more details and the color charts used to prepare this blog post, you can view from one of two formats:
Have a question or comment on market conditions? Leave a comment below and I'll answer and/or publish your comment for others to see and learn from!
Broker - CalNeva Realty