Reno’s “Million Dollar Creep”

Home search portal, Trulia, last week released the results of a study showing the increase in the share of million dollar homes across the United States – a trend the piece refers to as “million dollar creep”. See Million Dollar Creep: Where Seven Figure Homes are the New Normal.

The piece ranked the country’s 100 largest metro area’s by those that have seen the largest increase in the share of million dollar homes from 2012 to today. Not surprisingly Bay Area metros (e.g. S.F., San Jose, and Oakland) led the list — followed by metros in Southern California, Hawaii, and the Northeast. See the link above for the complete list.

Reading the story prompted me to take a closer look at our own market’s million dollar home segment.

I pulled all houses listed at $1M and above during 2012 and compared that to the number listed so far in 2016. I found that the number of million dollar listings in the Reno-Sparks market has nearly doubled since 2012. See the table below.

I then took a look at closed sales of houses — comparing the same time period. I found that the current rate of $1M+ sales in the Reno-Sparks market is triple that in 2012. See the table below.

By percent change, that kind of increase would place Reno and Sparks in the top echelon of the ranking of cities.

2012 2016*
All Priced at $1M+ Share of $1M+ All Priced at $1M+ Share of $1M+ Percent Change in Share
Listings 6,600 124 1.88% 3,319 120 3.62% 92.44%
Sales 6,099 26 0.43% 2,257 30 1.33% 211.80%

* – partial year

Note: The home price data reported above covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – May 24, 2016. Note: This information is deemed reliable, but not guaranteed.

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This week’s real estate headlines

Real estate headlinesHere are a few national real estate-related stories that came across my screen this week…

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Supply, Demand and Affordability

finished vacant single-family homes at its lowest level since 2006The Sierra Sun ran an interesting piece on current housing affordability (or lack thereof) in the Northern Nevada market — See Northern NV real estate: Home affordability slipping in Reno-Sparks

The piece reported some very interesting numbers regarding supply and demand. For example, regarding newly built homes, the inventory of finished vacant single-family homes is at its lowest level since Metrostudy began tracking the Reno market in 2006. …And this despite the fact that the number of homes currently under construction is up 40 percent last last year. Talk about high demand. Builders can’t keep them on the shelves.

From the Sierra Sun piece…

Oversupply is still a long way off. The supply of improved lots ready to develop is dwindling. The Reno market has 26-months of supply of finished and vacant single-family lots. Three years ago, there were 14 years of lot supply. Washoe County has only 14-months of supply.

Add resale homes to the mix and the inventory supply gets a little better — but not much.

I took a look at today’s available inventory currently listed on our MLS. The Reno and Sparks market currently has 1,053 listed available for sale. Considering that 563 homes sold in April, that equates to an approximate two-month supply of inventory.

And the supply is even tighter at the lower price points. Currently, of the 1,053 homes available for sale on the MLS only 499 (less than half) are priced below $400,000. Yet, of the 563 homes sold in April, a whopping 451 (80 percent) sold for under $400,000.

So, in actuality, the bulk of home buyers (over 80%) are shopping in a market with only about a one month supply of inventory.

Keep in mind that a balanced market is typically defined as four to six months supply. With the demand far exceeding supply the way it currently is, expect the upward pressure on home prices to continue.

[Btw, I took a quick peek at home sales for the month of May, thus far; if the numbers hold for the remainder of the month, May’s median sales price could be quite a large increase from what we’ve seen so far this year.]

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Note: The housing market data reported above covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – May 17, 2016. Note: This information is deemed reliable, but not guaranteed.

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This week’s real estate headlines

Real estate headlinesHere are a few national real estate-related stories that came across my screen this week…

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RSAR Monthly Market Report – April 2016

The Reno/Sparks Association of REALTORS® (RSAR) has released its Market Report for the month of April 2016. As expected, the RSAR’s numbers are consistent with the market data I reported on for April earlier this week.

From the RSAR report:

  • With demand exceeding supply, homebuyers may be facing an uphill battle to find the perfect home this spring. Total housing inventory at the end of April was 1,742 existing homes available for sale in the Reno/Sparks area. This is level with last year. At a 3.2 month supply of inventory, this is below the roughly six month supply level needed for a balanced market between buyers and sellers.
  • Median price is essentially level, down less than 1% from April and up 8% from April 2015.
  • New Listings are up 9% from April and up 6% from April 2015 at 835 units. This is the highest number of new listings since June 2008.?
  • In April, the average days on market was 92, level with April 2015.
  • The average days from listing date to contract date was 28 days compared to 38 in April ?of 2015.

Click on the chart below to access April’s Market Report

median sold price April 2016
Source: Reno/Sparks Association of REALTORS®

Related post: RSAR Monthly Market Report – February 2016

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April median sales price, units sold, DOM, DTC and inventory

April 2016 medianApril’s median sales price pulled back slightly from March’s. April’s median sales price came in at $294,000 — a 0.3 percent one-month decrease from March’s median of $295,000.

April’s median sales price year-over-year is up 8.1 percent over April 2015.

April’s median sold price per square foot (ppsf) increased to $168.02/sq.ft. — a 1.8 percent increase from March’s $165.07/sq.ft.

Year-over-year the median sold ppsf is up 11.4 percent. The median ppsf appears to be climbing faster than the median sales price. This could be due, in part, to the number of newly-built homes being sold [as new construction typically sells for a higher ppsf than resale].

April’s median sold ppsf also sets a new monthly high for this metric since the market bottomed in 2012.

The number of houses sold in April decreased to 557 units sold. That total represents a 3.5 percent decrease from the 577 houses sold in March. April’s total is also off 1.8 percent rom the 567 houses sold in April 2015.

With over 1,100 properties currently pending sale (see below), expect the number of May sales to be higher.

April’s median days on market (DOM) fell to 57 DOM — taking more than a week from March’s median DOM of 65 days.

April’s median days to contract (DTC) metric [the number of days that a property was listed on the MLS before going into contract (e.g. pending)] decreased to 4 days – one less day than March’s median of 5 DTC. The Reno-Sparks’ housing market is white hot right now. Buyer’s who are shopping for a home today know this too well.

Currently 840 houses are listed and available for sale — up slightly from last month. Pending home sales have increased to 1,142 units — a 10.1 percent increase over this time one-month ago. Look for May’s numbers to come in strong.

April sales by type break out as follows:

  • REO sales: 3% – unchanged from March’s 3%
  • Short sales: 2% – down from March’s 3%
  • Equity sales: 92% – up from March’s 90%

April sales by price band break out as follows in the table below…

sales price ($000’s) units sold cumulative % of sales
0 – 99 1 0.2%
100 – 199 46 8.4%
200 – 299 244 52.2%
300 – 399 155 80.1%
400 – 499 62 91.2%
500 – 599 21 95.0%
600 – 699 9 96.6%
700 – 799 6 97.7%
800 – 899 5 98.6%
900 – 999 1 98.7%
1M+ 7 100%
total 557

April’s median sold price for houses and condos combined was $280,000 — a 0.9 percent increase over March’s median sold price of $277,900 for combined sales of houses and condos.

The table below contains the past 13 months of data…

Month Year # Sold Median Sold Price Sold Price per Sq Ft Median DOM # of Actives # of Pendings
Apr 2016 557 $294,000 $168.02 57 840 1,142
Mar 2016 577 $295,000 $165.07 65 833 1,037
Feb 2016 368 $290,000 $162.77 85 765 1,010
Jan 2016 388 $277,750 $155.76 86 762 853
Dec 2015 500 $290,000 $157.29 76 819 749
Nov 2015 423 $292,000 $158.97 72 925 890
Oct 2015 541 $279,900 $158.88 66 1,105 886
Sep 2015 572 $285,000 $159.42 63 1,231 931
Aug 2015 526 $290,000 $160.98 56 1,238 1,021
Jul 2015 650 $290,000 $159.31 57 1,138 991
Jun 2015 657 $280,000 $155.22 54 1,005 1,088
May 2015 578 $283,450 $152.71 52 930 1,129
Apr 2015 567 $272,000 $150.85 57 785 1,101

Note: The medians table above is updated on a monthly basis. The median home price data reported covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – May 10, 2016. Note: This information is deemed reliable, but not guaranteed.

Click here for historical data back to 1998.

Related post: March median sales price, units sold, DOM, DTC and inventory

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This week’s real estate headlines

Real estate headlinesHere are a few national real estate-related stories that came across my screen this week…

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Ticor Title’s Washoe County Market & Foreclosure Statistics for March 2016

The insured recordings and foreclosure statistics below are provided by Ticor Title Company.

Resales and new homes sales remained relatively unchanged for March compared to February, but check out the spike in re-finances. On the foreclosure side, notices of default (NODs) increased in March; notices of sale NOSs fell; and trustees deeds climbed. Check out all of March’s numbers below.

[Click on the charts below to enlarge]

Ticor Washoe County Market Stats for March 2013-2015 Trend Line

Ticor Washoe County Foreclosure March 2016 Trend Line bar

Related post: Washoe County insured recordings statistics – January 2016

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