Reno-Tahoe Real Estate Market Snapshot - June, 2012
Welcome to the June, 2012 market update. Market conditions have not changed substantially from one month ago - tightening inventories, a lot of competition among buyers in the lower price ranges, and a continuing decrease in new REO listings due to AB-284. While it has "felt" like a Seller market, since early 2012, we are just now beginning to see some increase in median price (it takes a while for the ship to turn) and, of note, is a Reno median home price of $175,000 - a 21% over May, 2011 which was near an all time low at $144,450. Assembly Bill 284 continues to be a factor and I provide an update in the paragragh (and charts) below.
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. Take a look at the chart (and/or prior monthly posts on market conditions in this blog). Based on some briefings I have recently attended, it seems clear now that this law will not be revisited by the Nevada lesgislators until early 2013 and changes, if any are made, will likely not be felt in the local markets until late 2013 at the earliest.
Below is a brief summary of each local market with year over year details:
- Reno - During May, home sales were up 3% from May, 2011 - 333 homes sold. May's median sold home price was $175,000 - 21% above May, 2011 - we will see if this turns out to be a one month 'blip' or if this market is reaching for a new plateu; a continuation of this climb is unlikely in the near future. Reno Months of Inventory for June is at 5.2 months - 31% lower than June, 2011 and the same as May, 2012.
- Sparks - Sparks homes sold in May totaled 180 (up 1% from one year ago May sales); median home price equals $157,250 - up 3% from Spark's median home price of one year ago. Months of Inventory for Sparks is at 4.2 months, 31% lower than June, 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. Again, while Reno showed a big jump in median price for May, 2012, Sparks will likely see some increase very soon based on the low levels of Months of Inventory.
- Carson City - There were 66 homes sold during May, 2012 which represents a 74% increase from May, 2011! Carson City's median home price was $135,750 in May - down 1% from prices a year ago. Carson City Months of Inventory is at 5.4 - this indicator continues to trend down quite rapidly and is pointing towards a stable to slightly increasing market in the near future.
- Carson Valley - Homes sold in May 2012 totaled 62 - a 19% increase over May, 2011. The Carson Valley median home price at $182,750 is 6% lower than the May, 2011 median price. At 7.0 Months of Inventory (down 21% 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 market, however, is heating up and continues to be 'competitive' for home buyers in the lower price ranges.
- Lake Tahoe - With 11 homes sold in May, the Tahoe market (Douglas County only) was 12% over the May, 2011 sales volume. Months of Inventory, at 16.5 months, is 15% higher than June, 2011. The median home price was $400,000. This market is much more seasonal due to the vacation/recreation seasons at Tahoe and we are just beginnning to enter the summer season - we'll see how much activity develops in the lake "front" and lake "near" market over the next 3-4 months as a barometer for the luxury home 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.
- Dayton - Dayton home sales in May, 2012 totaled 34 homes - a 55% increase over May, 2011. Months of Inventory is at 5.6 months - 26% lower than one year ago. Dayton median home price, at $118,950, is down 1% 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 May, 2012 was $90,000 - a 5% increase over the median Fernley home price in May, 2011. Fernley saw 48 homes sold representing a 14% increase over May, 2011. Months of Inventory is at 4.6 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 to slightly rise and stay in the $90 to $100K range for the remainder of this year.
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Broker - CalNeva Realty