proscriptive clausewitz: Reno Sparks Homes and Real Estate Market Report

Thursday, October 11, 2012

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Virginia Lake

Reno Sparks Homes and Real Estate Market Report, Your Guide to Buying and Selling a Home in Reno Sparks!

Reno Sparks Homes Median Sales Price

August 2012 median price was up 6% to $175,000 compared to $165,000 in July 2012 and up 13.6% from? August 2011.
Median price is defined as the mid-point, where, for the time period identified, the price for one-half of the sales are higher and one-half are lower.

Reno Sparks Number of Homes Sold

August ended the month with 517 sold transactions, up 1.6% from the prior month and down 6.8% from the same period last year.
August 2012 sales are the third highest August in history.

Reno Sparks Homes New Listings

595 new listings were taken in August compared to 649 in July, an 8.3% decrease from the prior month and a 19.7% decrease from August 2011.
Properties listed at under $250,000 made up the 67% of new listings entering the market during the month of August.
48% of new August listings were distressed-Short Sales 40% (236); REO 8% (49); No special conditions 50% (298) and Other less than 2% (12).

Reno Sparks Homes Current Months Supply of Inventory? (Unsold Inventory divided by Sales per Month)

As of August 31, there was 4.6 months of unsold inventory based on the August sales.

Homes and Absorption by Group

Suburban Southwest had the highest level of active inventory with 195 Active Listings.
The North Valleys, Northwest, Spanish Springs and Sparks show the highest level of activity in pending sales for the month.
The North Valleys, Northwest and Spanish Springs show the highest volume of Closed Sales for the month.
Metro Southwest, Virginia City Highlands and West Suburban are what is defined as a balanced market.
Suburban Southwest and Washoe Valley are defined buyer?s market with an excess of 7 month?s supply of inventory.? The balance of the areas are considered a seller?s market with less than five month?s supply of inventory.

Summary

We have seen a steady increase in median price over the past seven months.? August 2012 median price is up 6% over July and up 13.6% over August 2011.? We have not seen this trend since August 2002, which began the steady increase in median price until its peak in January 2005.? The major difference is this trend is that there are no liar loans, lending guidelines and buyer credit requirements are more stringent, and appraisers remain conservative on accounting for increasing values.
Cash buyers represented 28% of the sold transactions year-to-date 2012; conventional financing 36%; FHA financing 27%; VA financing 6% and other 2%.
For investors and home buyers affordability is still excellent.? Today?s average square foot price for a single family residence in Washoe County is $100.53 per sq.ft.? In 2002, the average square foot price was $95.53.? If you assumed normal appreciation at 2% for the house purchased in 2002, its valuation in today?s market would be $116.43 per square foot.? When you add affordability to the fact the interest rates are 2.69 percentage points below what they were in 2002, today?s market is an excellent time to buy.
Current Month?s Supply of Inventory in the Reno market declined to 4.6 MSI for a second month keeping Reno/Sparks in a seller?s market for the sixth consecutive month.

To read the complete report with charts, graphs, and five year history RSAR Market Report August 2012

To read July 2012 report and previous months and years.

Report courtesy of Reno Sparks Association of REALTORS? with data supplied by NNRMLS.

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