RSAR Monthly Market Report – July 2014

The Reno/Sparks Association of REALTORS® has released its real estate market report for July 2014. The report can be accessed by clicking on the chart below.

RSAR market report 2014-07

Commentary from July’s report:

  • The acceleration in median price has slowed in comparison to the rapid increase that occurred in 2012 and early 2013. July 2014 median price remained level with the prior month and was up 16% compared to July 2013. We see this increase in year over year pricing easing. This is evident in that the year over year price increase July 2012 to July 2013 was 30%. The market is still 31.5% off the peak from January 2006. The slowing in the acceleration of median price is a positive trend particularly for the Washoe County Median income household.
  • July 2014 sales are at 520 down 8% compared to June and down 12% compared to July 2013. History shows us that the Reno/Sparks Market can absorb in the range of 500 sales per month.
  • New listings are up from the prior month, but inventory levels in the $100,000 -$300,000 price range have less than 4 month’s supply.
  • July pending sales were up 15% at 440 compared to 382 in June 2014. Pending sales are a leading indicator of future closed transactions.
  • Buyer demand and low inventory keep the Reno and Fernley in a Seller’s market. Reno has 4.2 Month’s Supply of Inventory and Fernley has 4.5 Month’s Supply.
  • NAR Chief Economist Lawrence Yun had this comment on the real estate market, “Price increases have been a double-edged sword; it’s been very good for owners or recent buyers because they’re immediately getting equity, but it has not been good news in terms of affordability for potential buyers.”

related post: RSAR Monthly Market Report – June 2014

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Cash sales trending down

RealtyTrac’s most-recent Institutional Investor and Cash Sales Report reports that cash purchases in the 2nd quarter accounted for 38% of U.S. Home sales. This number is down considerably from the 42% that cash sales comprised for the 1st quarter of 2014. See RealtyTrac’s ALL-CASH SHARE OF U.S. HOME SALES PULLS BACK FROM 3-YEAR HIGH, INSTITUTIONAL INVESTOR SHARE DROPS TO 3-YEAR LOW.

How does our local sales mix compare to these national numbers? In March, I reported that despite rising levels of cash sales nationally; at the local Reno-Sparks level, cash sales in our market appeared to be decreasing (See Cash purchases may be subsiding…locally)

I’ve pulled the latest numbers from our MLS and found that cash sales this year break out by quarter as follows:

  • 24.9% of Q1 sales were cash purchases
  • 23.9% of Q2 sales were cash purchases
  • ~21% of Q3 sales thus far have been cash purchases

Both, nationally and locally all-cash home purchases are trending down.

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This week’s real estate headlines

national real estate headlines - 2014Here are a few national real estate-related stories that came across my screen this week…

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FCT’s Market Condition Report – July 2014

Our friends at First Centennial Title have released their Market Condition Report for the Reno, Nevada area for the month of July. (Click on the report below to enlarge.)

FCT Market Condition Report July 2014

related post: FCT’s Market Condition Report – June 2014

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Homeownership trends around the world

Here’s a cool infographic from Jackson Rowe showing the various rates of home ownership across different countries, as well as other related facts.

For example, less developed countries have consistently higher levels of homeownership, while more advanced nations combine higher levels of economic development with substantially lower levels of home ownership.

[Click on the image to open in a new window to enlarge and view]


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Median sales price by zip code

median sales price by zip codeThe table below shows the median sales price for houses and condos throughout the Reno and Sparks, Nevada metropolitan area. I compared 2014 2nd-quarter data to the same period for 2013. The data is broken out by zip code and sorted by percent change in sales price, in descending order.

Three of the zip codes had very few sales (10 or fewer), resulting in a highly variable (and perhaps less meaningful) percent change. I have denoted these zip codes with an asterisk.

For comparison purposes, see January’s post, Which zip codes saw the greatest price increase in 2013?, where I compared 4th-quarter sales data between 2013 and 2012 by zip code.

Zip Code Area % Increase 2014 Q2 Median Price 2013 Q2 Median Price
89501* Reno (Downtown) 65.38% 215,000 130,000
89510* Palomino Valley 48.32% 308,500 208,000
89509 Reno (Old Southwest) 30.08% 320,000 246,000
89506 Reno (Stead, Lemmon Valley, Golden Valley) 25.79% 179,000 142,300
89502 Reno (Hidden Valley, Donner Springs) 25.00% 166,250 133,000
89431 Sparks 20.87% 139,000 115,000
89436 Sparks (Spanish Springs, Wingfield Springs) 18.99% 256,900 215,900
89503 Reno (NW) 18.34% 184,250 155,700
89519 Reno (Caughlin Ranch) 16.71% 461,000 395,000
89433 Sparks (Sun Valley) 16.15% 169,000 145,500
89434 Sparks (D’Andrea) 16.14% 191,000 164,450
89508 Cold Springs, Rancho Haven 15.51% 182,500 158,000
89521 Reno (Double Diamond, Damonte Ranch) 14.85% 290,000 252,499
89523 Reno (Somersett) 13.13% 280,000 247,500
89512 Reno (North) 11.46% 107,000 96,000
89441 West Spanish Springs 9.00% 309,500 283,950
89704 Washoe Valley 1.13% 268,000 265,000
89511 Reno SW (ArrowCreek, Saddlehorn, Galena, Montreux, St. James) -9.68% 420,000 465,000
89439* Verdi-Mogul -11.84% 335,000 380,000

* denotes 10 or fewer sales for the quarter.

Note: The median home price data reported above covers zip codes throughout Reno, Nevada and Sparks, Nevada. Residential data includes Site/Stick Built properties and Condo/Townhouses. Data excludes Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – August 2014. Note: This information is deemed reliable, but not guaranteed.

Related post: Which zip codes saw the greatest price increase in 2013?

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Reno’s Startup Row thriving

startup row Reno NevadaI’ve mentioned Reno, Nevada’s Startup Row in previous posts. This downtown Reno movement is gaining momentum, and now they’ve released a video to explain what it is.

Check out Reno’s local entrepreneurs talk about Startup Row and describe what it means to them in the video below…

For more information, goto Startup Row’s website.

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This week’s real estate headlines

national real estate headlines - 2014Here are a few national real estate-related stories that came across my screen this week…

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