Reno-Sparks Homes and Real Estate Report January 2011

real estate report 2 Reno Sparks Homes and Real Estate Report January 2011

 

Summary:

  • The year has started on the right foot with a continued lateral trend in year-over-year median sales price.  With a less volatile price movement, both buyers and sellers can anticipate and plan appropriately with a sense of stabilization in the market.  We experienced the second highest number of home sales for the month of January in the past decade.  Although it was a drop in sales month-over-month, we can attribute the drop in numbers to the fact that many buyers rushed to purchase a home in December for the tax implications.  It is fairly normal to see this type of month-over-month decrease in unit sales from December to January.

Reno-Sparks Median Sales Price

  • January 2011 median price was down 3.1% to $159,950 compared to $165,000 in December 2010.
  • The median sales price has remained relatively stable for the past twenty months.
  • Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Reno-Sparks Homes Sold

  • This January’s home sales are the second highest January in the past decade.
  • January ended the month with 350 sold transactions, down 26.5% from the prior month.
  • Sales were up 1.2% over the same period last year.
  • We have continued to see an increase in January year-over-year sales for the fourth consecutive January.

Reno-Sparks Homes Average Days on Market

  • The average days on market are 151 days, up 4.8% from December 2010.

Sold-to-asking-price Ratio

  • January reported sales received an average of 96.6% of the seller’s final asking price.

New Listings

  • 701 new listings were taken in January compared to 480 in December, a 46% increase.
  • The percentage of “Distressed” new listings was down 5% over the prior month.  71% of new January listings were distressed, 283 short sales, 206 Bank Owned/Other.
  • Properties reported as “Other” includes “Freddie Mac’s and HUD’s” are included with Bank Owned REO properties.

Status of Pending

  • Active Pending, Short Sales represents 62% of the total active pendings; Active Pending Loan equals 18%; Pending No-show represents 15%; Active Pending call 5%; and Active Pending House less than 1%.

Reno-Sparks Supply of Home Inventory  (Unsold Inventory divided by Sales per Month)

  • As of January 31, there was 9.1 months of unsold inventory based on the January sales rate.
  • The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.
  • Unsold inventory includes Active Pendings.  This method of reporting months supply of inventory follows the industry standard of including all pending sales in the active inventory.

Conclusion

  • Mortgage rates although inching up as predicted remain at historic low rates.  Recent rate increases from 4.5% on a 30 year fixed to 5.0% should be an incentive to move buyers from just thinking about buying in today’s market to getting off the fence and doing it.  The impact of an increase in interest rates is about $60 per month on a $200,000 mortgage.  Current predictions are for rates to inch up this year.
  • Median home prices ended the year at a new low, down $7050 from last January and at 2001-2001 prices.
  • The size of the active inventory in January, net of any pending sales, remained virtually the same as December with 1,966 single family homes available for sale in the greater Reno-Sparks area.
  • Closed sales numbers in January set records as being the second highest January sales number in the past decade.
  • The mix of closed sales in January has shifted again with a 9 percentage point increase in the number of Short Sales over December to 39% at the expense of the No Special Conditions and Bank Owned categories.
  • The fact that so much of our inventory consists of homes for sale by distressed sellers is a short version summary of our market.  The employment picture is the key to shutting off the supply of new distressed listings entering our market each month.

To read the full 14 page report complete with graphs, charts and five year history RSAR Member Report January 2011

To read December 2010 Market Report

Data sourced from NNRMLS and courtesy of Reno Sparks Association of Realtors.