Reno Tahoe Real Estate News

Real Estate Statistics for Northern Nevada

As promised, here are some statistical research I completed on Sunday.  If you would like more specifics, let me know. All statistics were pulled from the local multiple lisitng services in the area from December 2006 to December 2008.

If I pull statistics on all of Reno and Sparks December 06 to December 08

• There is a 31% decrease in the median price
• There is a 3% decrease in the overall number of properties on the market
• There is a 46% increase in the number of properties under contract
• There is a 15% decrease in the number of properties sold
• There is a 32% decrease in the sales rate (months of inventory)

 

In the old southwest, southwest and Caughlin areas of Reno

• Median prices were flat
• The number of listings for sale has dropped 12%
• The number of properties under contract has dropped 16%
• The number of properties sold has dropped 21%
• The number of months of inventory has increased by 8%

In the southwest suburban areas of Reno

• Prices have dropped by 63%
• The number of properties on the market has dropped by 2%
• The number of properties under contract have decreased by 38%
• The number of properties sold has decreased by 56%
• The sales rate (months of inventory) has increased by a whopping 264%

Spanish Springs area of Sparks

• Median price has decreased by 32%
• the number of properties for sale has decreased by 5%
• The under of properties under contract has increased by 150%
• The number of properties that has sold has increased by 79%
• The months of inventory has dropped by 62%

In the South Meadows area of Reno

• The median price has dropped by 34.4%
• The number of properties for sale has dropped by 11%
• The number of properties under contract has increased by 16%
• The number of properties that has sold had decreased by 29%
• The number of months of inventory as dropped by 16%

In Incline Village (using the entire MLS numbers)

• The median price has dropped by 67%
• The number of properties for sale has increased by 9%
• The nunder of properties under contract has decreased by 10%
• The number of properties that has sold has decreased by 33%
• The sales rate (monthly inventory) has increased by 17%

On the Nevada southeast side of Lake Tahoe

• The median price has decreased by 3%
• The number of properties for sale has increased by 21%
• The number of properties under contract has increased by 17%
• The number of properties sold has decreased by 50%
• The number of months of inventory has increased by 4%

South Lake Tahoe California

• The median price has decreased by 20%
• The number of properties for sale is flat (no change)
• The number of properties under contract has decreased by 11%
• The number of properties that has sold has decreased by 34%
• The months of inventory has increased by 10%

This is just a sampling of the multiple listing service statistics from each market but there are other factors that play into determining where opportunity lies.  One example I can think of are the areas where there is a large amount of new construction (think Northstar at Truckee, Spanish Springs, and Damonte Ranch to name a few).  I do firmly believe dealing with a professional Realtor will save you money in even the short run. 

Hope we hear from you and unti then I hope your 2009 is healthy and properous!

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What if we never experienced “The Real Estate Boom”?

For decades the Reno/Sparks housing market appreciated 3% – 3.5% annually. That is until early 2003. At that time we began to notice big upward spikes in our local median price and that continued to be the case through the end of 2005. During that period it was not uncommon to see our median price rise by 10% in any given quarter peeking at over $365,000 in January of 2006.

There are many theories on “why & how” this all happened, I have my own but that’s not the point of this post. I’d like to pose this question, “What would our market look like had we not gone through our BOOM”? Well, I think you’d need to start by looking at our median price back in early 2003. In January of ‘03 the median price in Reno/Sparks was around $185,000. If I take that number and annualize it at a 3.25% appreciation rate up through today our theoretical median price should be around $224,000. Ironically, that was almost exactly what our median price fell to at the end of November, 2008. In short, at this moment in time it’s as if the “Boom” never happened in relationship to our median price.

I won’t get caught saying the market can’t get softer. I do believe our median price is likely to drop this coming year. No doubt that Short Sales & Bank Owned homes will dominate many facets of our market. However, I can say a further drop in median values makes no sense when measured against the past 30 years. If you believe in historical trends in Real Estate, we’ve just crossed an important threshold.  

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