According to sales data from the Northern Nevada Regional MLS, traditional home sales (sellers with equity) lead the sales data for residential, stick built home sales in October 2010. Traditional, equity position sales accounted for 38.8% of sales in October. The median sales price $231,700. These sellers received on average 95.1% of asking price and had an average of 116 days on the market. The median sales price is bolstered by 15 sales over the $500,0o0 mark.
Bank owned or REO sales accounted for 32% of the sales in October. The median was signifcantly lower at $1390,950. These properties saw the fewest days on the market with an average of 96 days. These listing received on average 99% of asking price. The median sales price wasn’t helped much which only 3 homes sold over the $500,000 mark and almost 80% of the sales at the $200,000 or below price point.
Short sales accounted for 27.9% of the sales in October. They brought in a higher median sales price than the REO properties at $161,000. They unfortunately average the longest market times of 199 days. Short sale listings received an average of 99.1% of their asking price. The short sale median sales price was definitely bolstered by a $1,200,000 sale. There were 4 sales over the $500,000 mark. 70% of the short sales were under the $200,000 price point.
What does all this mean??? Sellers with equity can successfully sell their homes in a distressed market given that they have realistic expectations of the price. Bank owned/REO sales net the banks less than short sales, a continued argument that banks seem to be getting finally. And lastly, short sales aren’t just for homes in the lower price points. You can do a short sale on a $1 million home. You just have to prove to the bank that you have a hardship and that it’s in their best interest to not take the property back onto their books. It can be done.
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According to data from the Northern Nevada Regional MLS, sales in the Sparks area (which includes Spanish Springs and Wingfield Springs) had short sales leading in the 3rd Quarter of 2010. Short sales accouted for 35.4% of the sales in the quarter, traditional sales 34.9% and bank owned 29.8%. Compared to 3rd Q 2009 when bank owned sales topped the charts at 41.43%, traditional sales at 26.7% and short sales at 26.5%
The total number of sales for the Sparks area (MLS area 108) dropped slightly from 2009 to 2010, down about 6.1%. In addition, the median price also fell from $170,000 in 3rd Q 2009 to $160,700 in 3rd Q 2010, a drop of 5.5%.
There are currently (as of 10-22-2010) 568 active listings available to buyers in the Sparks area market. Of these 48.6% are short sales, 34.4% are traditional sales and 16.9% are bank owned. Key here for buyers is to make sure you have a buyer’s agent working for you that knows the ins and outs of short sales – doing your homework before making an offer on a short sale is key.
Bank owned properties continued to earn the highest list to sale price ratio. In 3rd Q 2010 bank owned lisitngs got an average of 99.6% of the asking price, short sales 98.9% and traditional sales 97.4%. Fewer foreclosed properties at low prices, continued mis-understanding of short sales and over-priced traditional listings drive these numbers.
As expected short sales have the highest average number of days on market. For 3rd Q 2010 short sales averaged 184 days on market, bank owned 79 and traditional sales 77. As a note the average number of days to close a short sale is relatively the same between 2009 and 2010. We keep being told by the banks that they are improving their processes. Hopefully this will reflect soon in our average days to close a short sale.
According to a Yahoo.com report on 10-20-2010 more than 55% of the active mortgages in the Reno-Sparks area are upside down. I think we will continue to see more and more short sales as homeowners become more educated about short sales as an option to foreclosure. The key is making sure that you select an agent that is highly skilled in the short sale areana and get legal and tax advice as well.
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Solds for Reno/Sparks in September: 534. See comparison chart for August and July.
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Currently 95 homes on the market – Active and Pending
Of the homes currently on the market, there are 47 not located in Del Webb, The Vue and The Village.
Of the 47 homes, only 30 are available without an offer.
- 5 between $200k and $300k
- 10 between $300k and $400k
- 5 between $400k and $500k
- 6 between $500k and $600k
- 3 between $600k and $700k
- 0 between $700k and $800k
- 0 between $900k and $1million
- 1 over $1million
Of the 17 homes in escrow, 15 are subject to a short sale or bank owned and 2 are regular sales.
85 homes have closed in Somersett since January 1, 2010. 17 were bank owned, 27 were short sales and 41 were regular sales.
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From the Northern Nevada Business Weekly, August, 9, 2010:
Personal income
The U.S. Bureau of Economic Analysis says per-capita personal income in the Reno-Sparks region in 2009 was $43,986, a 6.3 percent decline from a year earlier. The region ranks 35th in per-capita income nationally.
Underwater home owners
“Nearly 62 percent of the homes with mortgages in the Reno-Sparks market have negative equity – their owners owe more than the property would sell for – and home prices in the market are off 49.4 percent from their peak,” Zillow Real Estate Markets Reports says.
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According to data from the Northern Nevada Regional Multiple Listing Service, short sales posted the highest number of sales for June. In sales of residential, stick-built homes in the Reno-Sparks area there were 575 sales in June. Of that 43.2% were short sales, 33.6% traditional sales and 23.3% were REO/bank owned sales.
The median price of all sales in June in this category was $170,000. Median prices for traditional listings topped the charts at $219,950. Median for short sales was $151,000 and REO’s was $148,000. The average days on market for all lisitng types was 146 days. REO’s were on the market the least amount of time with an average of 85 days on market. Traditional sales averaged 109 days and short sales averaged 208 days.
Short sales have become very significant in our market. In June 2009 only 103 short sales closed, that is a 240% increase in the number of short sales that have closed this June over last June. Unfortunately the number of days on the market for short sales has not improved year over year – 204 days average last year compared to 208 days average this year. Although we would all like to see this improve, the complex nature of short sales may continue to keep these market times high.
Short sales are definitely a major part of our market. Working with an “experienced” short sale agent is key to the success of a transaction when either buying or selling a home today. Prospective buyers and sellers should ask their agent to show them how many transactions they have closed on either the buy or sell side of the transaction.
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The number of short sales closed in the Reno-Sparks area was just nine short of equaling the number of bank owned listings sold in the first quarter of 2010. According to data from the Northern Nevada Regional MLS, there were 449 short sales closed in the first quarter of 2010. There were 458 bank owned listings sold, 345 fair market sales and 141 categorized as “other” (typically Freddie Mac owned or HUD owned properties). If you combine the bank owned, short sales, and other categories you get a good picture of the distress market sales in our area, which during the first quarter of 2010 made up 75.2% of the market.
Buyers looking for a home in today’s market are forced to consider short sales as they account for 57.9% of the active listings. What is not surprising is the number of buyers waiting for short sale approval. There are currently 1,591 pending sales that are classified as short sales in the Reno-Sparks area, while only 764 are other sale types. So, in the pending category the number of short sales is 67.5% of pending sales.
Short sales still remain a long and sometimes frustrating process for both buyers and sellers. Many loan servicers are overwhelmed by the volume of offers they are processing which leads to long wait times for approvals or even for a response. Be sure that your agent is knowledgeable about the short sale process.
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Want to know what’s happening in the Sparks-Spanish Springs real estate market. Here is a recap of what sold in February 2010. (Stick built homes in Sparks-Spanish Springs from MLS data)
There were 45 short sales closed in February with a median list price of $159,900 and median sold price of $156,000. The average days on market for these closed sales was 190 days. Short sales accounted for 40.2% of the total sales in February.
There were 41 REO/foreclosure properties sold in Februrary with a median list price of $150,000 and median sold price of $143,000. The average days on market for these closed sales was 86 days. The REO/foreclosure properties accounted for 36.6% of the total sales in February.
There were 26 homes sold that were not distressed sales in February with a median list price of $179,950 and a median sold price of $178,200. The average days on the market for these closed sales was 106 days. These sales account for 23.2% of the total sales in February.
Looking forward here is a recap of the Active and Pending Sales in the Sparks-Spanish Springs area.
There are 584 short sales currently on the market. 203 of those are active and 381 are pending short sale approval. The median price for active/pending short sale listings is $168,250 and the average days on market is 145 days. Short sale listings account for 62.3% of the active or active pending inventory.
There are 133 REO/foreclosure properties currently on the market. 45 of those are active and 88 are pending sale. The median price for active/pending REO/foreclosure properties is $145,000 and the average days on the market is 71. REO/foreclosure listings account for only 14.2% of the active/pending inventory.
There are 220 non-distressed propertys listed. 137 are active and 83 are pending. The median price for non-distressed listings is $249,999 with an average of 122 days on the market. Non-distressed properties account for 23.5% of the active/pending inventory.
So, what does this mean for home buyers and sellers? Short sales are a large part of the market. Whether you are buying or selling a home in the Sparks-Spanish Springs area be sure to enlist an “EXPERIENCED” short sale agent to assist you. These are complicated transactions that require a REALTOR with not only certifications but actual closing experience.
REO/foreclosure sales are becoming more scarce has banks begin to see the value of short sales and slowly release their foreclosed inventory. These properties require immediate action from buyers as they will typcially go into contract quickly and often with multiple offers.
Non-distressed properties are in demand by buyers, but many sellers continue to over price these properties. Some buyers are willing to pay for the convience, but not many will over pay just for the convenience. Sellers for you that means sharpening your price and being realistic about current market conditions.
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Here are the most current statistics on unemployment in the state of Nevada and for Washoe County.
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Wednesday, November 17, 2010 By: Amy Shocket
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