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.
Popularity: 5% [?]
It’s hard to believe it is already that time of year again, yet Hot August Nights is just around the corner. For those of you who might not know – Hot August Nights is an annual event that brings thousands of classic cars to the Reno-Sparks area. There are car shows, cruises, auctions, 50′s style dances, bands and a full week of great events.
Every year my family and I get our chairs ready and head down to Victorian Square. We arrive early and place our chairs right up front so that we can feel the heat from the cars and smell the oil burning, not to mention getting an up close look at some really fabulous classic cars. Once we have the perfect spot we head inside to one of the great restaurants in Victorian Square for an early dinner.
With our appetites satisfied we head out and walk up and down looking at all the great cars. The atmosphere in Sparks is perfect for families and the crowds are really not too bad. When my kids were little they would make signs that said “Rev It Up” and the drivers going by would stop and rev their engines for the kids and throw candy into the crowd.
I think what I like the best is the small town feeling you get when you go to events in Sparks. I always seem to run into people I know and there is a great sense of community here. So even though my kids are older now and wouldn’t be caught dead holding up a “Rev It Up” sign we’ll be out there next week enjoying the cars and the great Sparks community. Hope to see you there.
Popularity: 4% [?]
I was so happy to receive an email this week from the City of Sparks about the re-opening of Sparks Boulevard. After almost eleven months of construction to install new sewer pipes they have finally completed the project and Sparks Boulevard is now re-opened. The timing couldn’t be better as the City now starts another project at the intersection of Los Altos Parkway and Vista Boulevard. With the considerable amount of growth the Sparks area has seen over the years, the need for these improvement projects is great. Although we find the delays and traffic an inconvenience, we are all more patient knowing that they will produce better roads and more smoothly flowing traffic when they are completed.
Popularity: 2% [?]
Many may not even know this park exists, but it is a great addition to the City of Sparks. Memorial Park which is located at the corner of Pyramid Highway and C Street is a solemn place where many ceremonies to honor veterans and firefighters take place. The City announced last week that it will be doing a $234,511 face lift at the site with a scheduled completion of Memorial Weekend.
Every time I pass by the park I think of the 911 events and of all the firefighters and soldiers who have given their lives to defend our freedoms. I applaud the City of Sparks for having this great memorial and keeping it in good repair.
Popularity: 2% [?]
Yes, that’s right the City of Sparks slogan is “The City of Promise.” Promise of a great lifestyle is what I call it. Sparks is home to about 82,000 residents in a 34 square mile space. At one time the city was called East Reno, but the citizens in 1904 had an independent spirit and decided to name the city after the governor, John Sparks. The City of Sparks is a family oriented community with many activities for families to enjoy and is considered a “premeir special events center.” People come from miles around to enjoy events such as the Best in The West Rib Cookoff, Hot August Nights, and Sparks HomeTown Farmers Market. Sparks is also well know for its great parks and recreation system. With the Sparks Marina and the new Golden Eagle Sports Complex you can play to your heart’s content.
Want to live in Sparks? Sparks offers the promise of a wide range of housing opportunities for residents. There are older established neighborhoods and new communities with great neighborhood schools. The median home price in the Sparks Subregion was $240,000 in the 4th quarter of 2007 for existing single family homes. This is below the median sales price for the Greater Reno-Sparks area which was $300,000. (Data is from the Center for Regional Studies at UNR.)
As a Sparks resident for over 13 years I can tell you I wouldn’t want to live anywhere else. Sparks has truly been the City of Promise for my family.
Popularity: 2% [?]
As we begin to see an increase in buyer activity in the Sparks and Spanish Springs real estate market many want to know what is selling and where. According to data from the Northern Nevada Regional MLS, as of today in the Sparks and Spanish Springs areas almost three-quarters (73.5%) of the single family homes that have sold since March 1, 2008 are in the under $300,000 price range. These homes have an average list price of $242,423 and an average sold price of $232,252.
Where are these homes?
- 36% – East Sparks (Established neighborhoods like Wabash Circle)
- 28% – Sparks Suburban (Includes neighborhoods like The Vistas and Kiley Ranch)
- 16% – South Spanish Springs (Included neighborhoods like Wingfield Springs and Cimmaron)
- 12% - West Spanish Springs (Near Spanish Springs High School)
- 4% – Sparks
- 4% – West Spanish Springs (Includes neighborhoods like Bridle Path)
The homes that have sold since March 1, 2008 experienced an average of 124 cumulative days on the market. Bank owned properties received on average 96.32% of asking price and other sellers received 95.1% of asking price.
What is driving the prices and sales in the Sparks and Spanish Springs area? Bank owned homes. Of the homes mentioned above 60% were bank owned properties that entered the market as a result of a foreclosure. What does this mean for buyers? Opportunities galore. There are still a large number of bank owned homes available on the market in the Sparks and Spanish Springs areas. As we all know banks are anxious to remove these homes from their inventory and have priced them very competitively.
Contact a Dickson Realty agent today to learn more about the Sparks and Spanish Springs markets as well as the pros and cons of buying a bank owned home.
Popularity: 7% [?]
Friday, December 19, 2008 By: Dan Rider
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