RSAR Market Report for Fernley, Nevada – July 2019

The Reno/Sparks Association of REALTORS® (RSAR) has released its Fernley Market Report for July 2019.

From July’s report…

The July 2019 report indicated that Fernley had 53 sales of existing single-family homes, a decrease of 2 percent from July 2018 and a 14.5 percent decrease from June 2019. The median sales price in Fernley for an existing single-family residence in July 2019 was $265,098; a 5 percent increase from July 2018, and less than 1 percent decrease from June 2019. All sales numbers are for existing “stick built single-family dwellings” only and do not include condominium, townhome, manufactured, modular or newly constructed homes.

Click on the graph below to see the entire RSAR market report for July.

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RSAR Market Report for Reno and Sparks, Nevada – July 2019

The Reno/Sparks Association of REALTORS® (RSAR) has released its Reno-Sparks Market Report for July 2019.

From July’s report…

During July 2019, the report showed Reno-Sparks had 590 sales of existing single-family homes; an increase of 4 percent from July 2018 and an 4 percent increase from one month ago, June 2019. The report listed the median sales price for an existing single-family residence in Reno-Sparks in July 2019 at $405,000; a 5 percent increase from July 2018 and a 1 percent increase from June 2019. All sales numbers are for existing “stick built single-family dwellings” only and do not include condominium, townhome, manufactured, modular or newly constructed homes.
The median sales price of existing condominium/townhomes in Reno-Sparks in July 2019 was $223,500; a 14 percent increase from a year ago.

Click on the graph below to see the entire RSAR market report for July.

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This week’s real estate headlines

Here are a few national real estate-related stories and news pieces that came across my screen this week…

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Have you seen the Washoe County School District’s Data Gallery site?

ICYMI, the Washoe County School District has a website called the Data Gallery, which contains a wealth of information. Among various topics and data sets, here are some of the areas one can explore:

  • Interactive Budget — The Interactive Budget was developed as a tool to assist the public in viewing the details of WCSD’s Fiscal Year 2018-19 Final Budget.
  • Finances and Payroll — See the amount of money paid to Washoe County School District employees and track spending throughout the district or school by school.
  • Academics — See graduation rates, Smarter Balanced assessments, Social and Emotional Competencies (SEC), and more.
  • Buildings — Allows you to view all about current and upcoming new school construction and repairs, current capacity and overcrowding level of each school across the District, repairs that are needed, contractors, and more.
  • School Zoning — This cool interactive map allows the user to enter their home address and then see what elementary, middle, and high schools they’re zoned for. Click on the map below to see play with it.

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Months supply of inventory by price band — July 2019

This past Saturday I posted July’s real estate market numbers on this blog, as well as on Facebook and LinkedIn. Afterward I received a question from a Facebook reader that read, in part: “I’m curious if there is any value in the months of supply metric across price segments? If that is an indicator of a buyer or seller market I wonder how much it shifts as you move up the segments.”

His is an excellent question and one that I wanted to answer. The short answer is: Yes, there is value in breaking out the inventory by price segment; and yes, the current market does shift (from Buyer’s to Seller’s market) as one moves up the price segments.

Before we get into just how much the market shifts as we move across price segments let’s define…

Buyer’s Market vs. Seller’s Market

[from Reno, Nevada’s Housing Shortage — How Bad Is It? – Dec. 21, 2017] Local real estate markets are typically described as Buyer’s, Seller’s, or Balanced markets. A buyer’s market is one in which the supply of houses substanitally exceeds the demand for those houses. Such a scenario gives home buyers some leverage over sellers in price negotiations.

A seller’s market, on the other hand, is one in which the supply of houses is substantially less than homebuyer demand for homes. This scenario gives the home sellers leverage over the buyers in price negotiations.

A “balanced market” (also known as a neutral market) is one where buyer demand and seller inventory are at an equilibrium — neither side has substantial leverage over the other. The wide consensus among real estate practitioners and economists is that a balanced market is established when the months supply of inventory (MSI) falls in the range of 4 – 6 MSI.

So, to recap…

  • > 6 MSI = Buyer’s Market
  • 4 – 6 MSI = Balanced (or Neutral) Market
  • < 4 MSI = Seller’s Market

Available Inventory

Looking at the data in the table below one can see some stark differences in available inventory across price bands.

Take the Months Supply Inventory (based off of July’s sales) [the 4th column of the table] as an example. One can see that the market stays in “Seller’s Market” territory all the way up to the $800,000 price point before shifting to a “Buyer’s Market”.

Now, July is typically one of our market’s peak months for the number of homes sold, therefore determining MSI based off of July’s numbers may be a bit misleading. In order to to provide a more accurate picture of how the market shifts across price bands, I have also calculated current MSI using an average monthly sales number based off of year-to-date sales.

Using the average monthly sales numbers provides a truer picture. Looking at the results in the last column of the table we see the following…

  • Available inventory is in an extreme Seller’s Market scenario in price bands up to $500,000.
  • From $500,000 to $1,000,000 the market can be described as Balanced.
  • Above $1M the market shifts to a Buyer’s Market — with some segments having more than a year of available inventory.

As always thank you for reading. And keep those questions and comments coming.


1. 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 – August 5, 2019. Note: This information is deemed reliable, but not guaranteed.

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Incline Village, Nevada housing market report

Below please find the current housing market report for Incline Village, Nevada.

From this week’s report…

This week the median list price for Incline Village, NV is $1,687,500 with the market action index hovering around 27. This is an increase over last month’s market action index of 25. Inventory has held steady at or around 40. The Market Action Index answers the question “How’s the Market?” by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies Seller’s Market conditions. Below 30, conditions favor the buyer.

Home sales have been exceeding new inventory for several weeks. Since this is a Buyer’s market, prices are not yet moving higher as excess inventory is consumed. However, as the supply and demand trends continue, the market moves into the Seller’s zone, and we are likely to see upward pressure on pricing.

Click on the chart below to access the entire market report.

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July median sales price and other market metrics

Another month, another record high. Reno and Sparks, Nev. median home sales price hits another all-time record high — now at $405,000!

The median home price in Reno-Sparks, Nevada added an additional $5,000 in July — coming in at $405,000 for the month and setting another new record high. July’s median home price climbed 1.3 percent over June’s previous record-setting median of $400,000.

Year-over-year, July’s median sale price is up 5.2 percent.

Interestingly, while July’s median home price climbed, the median sold price per square foot (PPSF) fell slightly — receding to $218.51/sq.ft. This number is down 0.6 percent from June’s $219.84/sq.ft.

Year-over-year, July’s median sold PPSF is up 1.0 percent.

Homes Sold

The number of homes sold in July rose compared to June’s 567 homes sold. 587 homes sold in July — representing a 3.5 percent increase over June.

Year-over-year, July’s number of homes sold was up 3.5 percent over the 567 homes sold in July 2018.

Year-to-date home sales for 2019 are down 3.5 percent compared to the same period last year — 3,511 vs. 3,635, respectively.

Inventory

Regarding inventory, presently 1,367 homes are available for purchase in the Reno-Sparks market. This number is up 9.2 percent over the 1,252 homes available for sale this time last month. Year-over-year, July’s currently available inventory is up 18.5 percent.

That being said, despite the number of homes currently available for purchase, only 21.7 percent are priced at, or below, the current median sales price. Lack of affordable inventory remains an issue.

Pending sales fell slightly in July. Presently, 906 homes are pending sale in the Reno-Sparks market. That number is down 1.0 percent over the 915 homes pending sale this time last month. However, year-over-year, current pending sales are up a healthy 8.1 percent over the number of pending sales in July 2018.

Days on Market

July’s median days on market (DOM) came in at 60 days — an increase of 5 days over June’s median DOM.

Year-over-year, July’s DOM number is up 7 days over July 2018’s number.

Sales by Type

July sales by type, break out as follows:

  • REO sales: 0.2% – down from June’s 1.3%
  • Short sales: 0.0% – unchanged from June’s 0.0%
  • Subject to Court Approval sales: 1.9% – up from June’s 1.3%
  • Relocation sales: 0.2% – down from June’s 0.8%
  • Equity sales: 97.8% – up from June’s 96.6%

Sales by Price

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

Sales by Price Segment
sales price ($000’s) units sold cumulative % of sales
0 – 99 0 0.0%
100 – 199 3 0.5%
200 – 299 77 13.6%
300 – 399 200 47.7%
400 – 499 148 72.9%
500 – 599 59 83.0%
600 – 699 37 89.3%
700 – 799 24 93.4%
800 – 899 6 94.4%
900 – 999 14 96.8%
1M+ 19 100%
total 587

July’s median sold price for houses and condos combined was $377,823 — a 0.9 percent increase over June’s median sold price of $374,475 for combined sales of houses and condos.

The table below contains the past 13 months of data[1]

Past 13 Months of Home Sales Data
Month Year # Sold Median Sold Price Sold Price per Sq Ft Median DOM # of Actives # of Pendings
Jul 2019 587 $405,000 $218.51 60 1,367 906
Jun 2019 567 $400,000 $219.84 55 1,252 915
May 2019 681 $390,000 $220.20 54 1,163 911
Apr 2019 531 $375,000 $213.73 65 996 923
Mar 2019 458 $369,000 $207.92 78 867 815
Feb 2019 362 $372,150 $208.84 89 888 774
Jan 2019 325 $362,000 $210.44 86 961 655
Dec 2018 385 $365,000 $209.82 77 1,079 541
Nov 2018 469 $377,500 $211.75 71 1,237 634
Oct 2018 468 $385,000 $213.86 65 1,300 717
Sep 2018 460 $372,527 $210.74 60 1,333 725
Aug 2018 572 $370,725 $211.79 57 1,208 790
Jul 2018 567 $385,000 $216.37 53 1,154 838

Thank you for taking the time to read this market report. As always, your comments and questions are welcomed.


1. 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 – August 3, 2019. Note: This information is deemed reliable, but not guaranteed.

For historical home sale data back to 1998 click here.

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This week’s real estate headlines

Here are a few national real estate-related stories and news pieces that came across my screen this week…

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