Fernley Homes and Real Estate Report July 2010

for sale and sold 150x141 Fernley Homes and Real Estate Report July 2010

Fernley homes and real estate monthly report provides information on homes sold, homes for sale, bank owned and short sale statistics for Fernley, Nevada.

In July, we experienced an anticipated letdown in the number of existing home sales following the five year record set in June which was driven by the deadline to close sales qualifying for the $8000 tax credit by June 30th.

The July numbers for new pending sales remain strong, an important leading indicator for the coming months that indicate continued demand for resale homes.  Pending sales taken together with the rise in the July 2010 median sales price over June 2010 and a slight increase in the median price year-over-year and July marks the continuation of some welcome positive indicators.  In the context of less favorable general economic conditions we remain cautious.  We will closely monitor these numbers to hopefully see a continued trend in the leveling of median sales costs.

Fernley Homes Median Sales Price

  • July 2010 median price decreased by 2% to $107,500 compared to $110,000 in June 2010.
  • The median sales price has been relatively stable for the past fourteen months.
  • Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Fernley Homes  Sold

  • July ended the month with 44 sold transactions a decrease of 8% from the prior month.
  • Sales were down 22% over the same period last year.

Fernley Homes Average Days on Market

  • The average days on the market is down to 108 days, a decrease of 11% from the prior month.

Sold-to-asking-price Ratio

  • July reported sales received an average of 97.9% of the seller’s asking price.

Fernley New Listings

  • 63 new listings were taken in July compared to 55 in June, a 14.5 increase over the previous month and an 11.3% decrease from the prior year.
  • The percentage of “Distressed” new listings was up slightly from June.  70% of new July listings were distressed.
  • Note:  Begining with the January 2010 report as “other” which includes “Freddic Mac’s and HUD’s” are included with Bank Owned REO properties.

Status of Pending

  • Active Pending – short sales represents 56% of the total active pendings: Active Pending Loan equals 23%; Pending No-show represents 19%; and Active Pending call is -2%.

Absorption Months Supply of Inventory   (Unsold Inventory divided by Sales per Month)

  • As of July 31, there was 4.8 month of inventory based on the July sales rate.
  • The National Association of REALTORS® describes a balanced market as between 5 and 7 month supply.
  • Unsold inventory includes Active Pendings.  This method of reporting month’s supply of inventory excluding Active Pendings would bring the absorption down to 2.5 months supply of inventory.

Additional Conclusions

  • Seasonal inventory of homes available to purchase are rising consistent with the prior year; however, the month’s supply of inventory or absorption remains below a balanced level.  This gives buyer’s fewer choices of available homes for sale.

Conclusion

  • July median is down 10% year over year.  With the exception of a couple months following the sun setting of government tax incentives, the median price has remained stable for the past fourteen month.  Median home prices remain at 2002 levels with a slow recovery rather that a “rebound” most likely.
  • As expected, unit sales level was down from the prior month.  This softening of the market or what could be described as the “Post Credit Blues” was anticipated as buyers adjust to no goverment incentives.  As a forward looking indicator, pending sales remained strong in July.
  • The fact that Congress granted an extension for those transactions that were in contract by April 30, but that were unable to close by June 30, should help sustain the number of closed transactions through the new deadline of September 30.

Courtesy of Reno Sparks Association of Realtors.    Read the 14 page July2010FernleyMemberReports with 5 year statistics.

Fernley Homes and Real Estate Report June 2010