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…

Posted in headlines, News | Tagged , | Leave a comment

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…

Posted in headlines, News | Tagged , | Leave a comment

RSAR Monthly Market Report for Reno-Sparks, Nevada – August 2018

The Reno/Sparks Association of REALTORS® (RSAR) has released its Reno-Sparks Market Report for August 2018.

From August’s report…

“During the month of August, there were 778 new listings,” said Doug McIntyre, 2018
RSAR President. “Since January of this year, active inventory levels have been trending up and reached a 21-month high in August. Months Supply of Inventory also reached a 16-month high at 2.4 months. The increasing levels in inventory should take some of the stress off median price.”

  • The August median price at $372,551 is down 4% from July and up 6% from a year ago.
  • August unit sales at 542 are down 4% from July and down 23% compared to August 2017.
  • August new listings are up 10% at 778 compared to July and up 4% from one year ago.
  • The Reno market is a seller’s market, at 2.4 months supply of inventory. Months supply of inventory is the time it would take to exhaust the active inventory at the current rate of sales.

Click on the graph below to see the entire RSAR market report for August…

Related post: RSAR Monthly Market Report for Reno-Sparks, Nev. – July 2018

Posted in Market Trends | Tagged , , , , , , , , , , , | 2 Comments

RSAR Monthly Market Report for Fernley, Nevada – August 2018

The Reno/Sparks Association of REALTORS® (RSAR) has released its Fernley Market Report for August 2018.

From August’s report…

“Since February of this year, active inventory levels have been slowly trending up,” said Doug McIntyre, 2018 RSAR President. “The increasing levels in inventory should take some of the stress off median price.”

  • The median price at $253,000 is up less than 1% from July and up 6% from August 2017.
  • Fernley’s unit sales at 54 are up 2% from July and down 14% from August 2017.
  • August new listings at 65 are down 17% from July and down 16% from August 2017.
  • The Fernley market has 2.1 months supply of inventory, a seller’s market.

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

Related post: RSAR Monthly Market Report for Fernley, NV – July 2018

Posted in Market Trends | Tagged , , , , , , , , , | 2 Comments

“Search for Properties” page is working again!

It was brought to my attention recently that the property search page was not working. [Thank you to readers of the blog who brought the issue to my attention. Much appreciated.]

I am happy to report that the Search for Properties page is now working again. Search away!

And remember you can save your searches (as many as you want) and be notified when new listings, fitting your search criteria, come to market.

Posted in General, Tech Tools | Leave a comment

August’s drop in the median sales price is one of the largest on record — should we be worried?

Last week I posted my monthly report on the Reno-Sparks housing market. The big surprise in August’s data was the huge drop observed in the median sales price. August’s median home sold price was $370,000. Compare that number to July’s median sales price of $389,000, and you’ll see a whopping 4.9 percent one-month drop in the median sales price.

I remarked in last week’s report that the current median home price has now returned to levels not seen since early spring. Are prices taking a breather from climbing to their record-setting highs? Is this a correction? A signal of things to come? Or a one-month abnormality?

I wanted to dig a little deeper to put some perspective on a price drop of this magnitude. The first thing I did was look at historical data to see if our market had ever experienced such a drop in the past.

The Crash

Longtime readers of this blog will recall that the run-up in home prices during the housing bubble reached an all-time high of $365,000 in January 2006. Leading up to that time there was much discussion [on this blog and elsewhere] about a “bubble”; how high housing prices would climb; and when would the bubble burst.

No one knew in January 2006 that that month’s median home price of $365,000 was the peak — and why would they think so? Home prices had been climbing for years — albeit the increases had accelerated to a pace never before seen. [See the chart below.]

Additionally, the previous year (2005) saw a couple one-month drops in the median home price, but prices had always jumped back up. For example, September 2005 saw a 1.7 percent drop, but then prices rose 1.4 percent in October. Similarly, November 2005 experienced a hefty 3.0 percent drop, but then home prices rebounded 1.8 percent in December, and then climbed another 2.8 in January 2006 to reach a new record high. Nothing to worry about, right?

The following month everything changed.

In February 2006 the median sales price plunged an incredible 8.2 percent — coming in at $335,000 — a full $30,000 drop from January’s peak. That caught everyone’s attention and set in motion a sell-off and plummeting of home prices that continued for six years. [See chart below.]

From January 2006 to January 2012 the median home price crashed an incredible 63.0 percent — pushing prices all the way back to 1997 levels.

That 8.2 percent drop in the median sales price back in February 2006 was noteworthy on many levels.

The Recovery

After hitting bottom in January 2012 home prices turned the corner and began an upward trajectory that continues today. In my search for large one-month drops I decided to focus on the years since the market bottomed in 2012.

In the 68 months since January 2012 there have been 21 one-month price drops in the median sales price. […which also means 47 months have seen price increases.]

Most of these 21 price drops have been in the 1 – 3-percent range. But a handful have exceeded that range. Here are the five greatest one-month decreases since January 2012 from highest to lowest.

So, as can be seen above, last month’s drop in the median sales price, though atypically large, is not unheard of. It is noteworthy in that since the turnaround in 2012, last month’s decrease in the median sales price was the 2nd-largest on record. But is it cause for alarm?

Given the current market conditions, namely buyer demand relative to tight inventory supply, I anticipate prices rebounding next month.

As always, I welcome your thoughts and comments.

Posted in Agent Insights, Market Trends | 6 Comments

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…

Posted in headlines, News | Tagged , | Leave a comment

August median sales price and other market metrics

[Ed. Note – I apologize for the absence of last month’s (July) market metrics. Personal and client commitments did not afford me the time to compile the stats and draft my regular monthly market report. I did, however, update the Historical Median Sold Data table. Additionally, I posted the market reports provided by the Reno/Sparks Association of REALTORS® (RSAR). You may find RSAR’s Market Report for July here. So, without further ado, let’s take a look at August’s numbers.]


After setting new highs in June ($381,950) and July ($389,000) the Reno-Sparks median home price pulled back sharply in August — coming in at $372,550 — a level we haven’t seen since earlier this spring.

August’s median sales price pullback represents a whopping 4.2 percent decline from July’s median sales price. Year-over-year, August’s median sales price is up 6.9 percent.

August’s median sold price per square foot (PPSF) also fell — coming in at $211.03/sq.ft., down 2.5 percent from July’s median sold PPSF of $216.37/sq.ft. August’s median PPSF is up 10.7 percent year-over-year.

Lack of available for-sale inventory continues its toll on the number of homes sold in the Reno and Sparks markets. Units sales in August totaled 542 homes sold for the month — down 4.1 percent from the 565 home sold in July. For perspective, consider that last year 720 homes were sold during the month of August 2017. Last month’s sales were down a whopping 24.7 percent year-over-year.

The good news is currently available inventory continues to increase. Presently 1,208 homes are available for purchase in the Reno-Sparks market. That number is up 4.7 percent over the 1,154 homes for sales this time last month. Year-over-year, the current number of available homes for purchase is up 26.9 percent.

Despite the gains in the number of homes available for purchase, less than one-third (30.1 percent) are priced at, or below, the current median sales price.

The persistent issue of lack of affordable homes for sale in Reno and Sparks continues to weigh on pending sales. Presently 790 homes are pending sale in the Reno-Sparks market. That number is down 5.7 percent from the 838 homes pending sale this time last month. However, seasonal factors are also at work here. Year-over-year, current pending sales are down 23.4 percent from August 2017.

August’s median days on market (DOM) came in at 57 days — an increase of four days over July’s DOM.

August sales by type, break out as follows:

  • REO sales: <1% – unchanged from July’s <1%
  • Short sales: <1% – unchanged from July’s <1%
  • Subject to Court Approval sales: <1% – down from July’s 1.8%
  • Relocation sales: <1% – unchanged from July’s <1%
  • Equity sales: 98% – unchanged from July’s 98%

August 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 1 0.2%
100 – 199 7 1.5%
200 – 299 94 18.8%
300 – 399 213 58.1%
400 – 499 105 77.5%
500 – 599 44 85.6%
600 – 699 21 89.5%
700 – 799 18 92.9%
800 – 899 8 94.3%
900 – 999 9 95.9%
1M+ 22 100%
total 542

A whopping 22 homes sold for over $1,000,000 in August. Last year a total of 143 homes sold for over $1,000,000 — for an average of 12 per month. Thus far, year-to-date, 157 $1M+ homes sales have occurred. If this pace continues, 2018 will see well-over 200 sales of $1M+ homes. [ See related post: Reno, Nevada Luxury Home Prices Gain Momentum in First Half of 2018.]

August’s median sold price for houses and condos combined was $352,500 — down 2.9 percent from July’s median sold price for combined sales of houses and condos.

The table below contains the past 13 months of data…

Past 13 Months of Home Sales Data
Month Year # Sold Median Sold Price Sold Price per Sq Ft Median DOM # of Actives # of Pendings
August 2018 542 $372,550 $211.03 57 1,208 790
July 2018 565 $389,000 $216.37 53 1,154 838
June 2018 600 $381,950 $215.88 49 923 906
May 2018 574 $375,000 $209.04 49 725 920
Apr 2018 491 $374,000 $205.34 51 638 891
Mar 2018 548 $375,000 $200.88 50 529 814
Feb 2018 443 $370,000 $194.48 61 528 796
Jan 2018 405 $360,000 $191.42 68 514 782
Dec 2017 494 $345,000 $194.36 69 605 578
Nov 2017 534 $353,000 $197.03 61 767 713
Oct 2017 555 $345,000 $191.48 64 851 843
Sep 2017 613 $336,900 $194.62 59 925 889
Aug 2017 720 $348,450 $190.57 61 952 1,032

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 – September 5, 2018. Note: This information is deemed reliable, but not guaranteed.

Related post: June median sales price and other market metrics

Click here for historical data back to 1998.

Posted in Agent Insights, Market Trends | Tagged , , , , , , , , , , , , , | 1 Comment