September median sold price, units, DOM, and $/sq.ft.

The recent flurry of home buying is still alive and well in Reno and Sparks, NV.  Almost 500 houses were sold during the month of September; 494 houses to be precise.  I can’t help but think much of this activity is driven by the impending expiration of the first-time homebuyer’s tax credit [currently set to expire December 1, 2009].

To put the recent number of home sales in perspective consider that in the 3rd quarter of 2008, 1,076 homes were sold.  Compare that figure to the 1,485 sold in 3Q 2009 – a 38% increase.

The big news for September, however, is that the median sold price jumped 2.9% over August’s figure, to $185,250.  With June, July and August’s medians holding steady at a low of $180,000, does September’s increase in median sold price indicate a bottom was reached?  [Note: That last question may constitute comment baiting.]

Remember, we’re always told the only way to recognize a bottom is in hindsight.  Perhaps May’s median sold price of $175,000 median was it.

The make-up of September’s sales is as follows:

  • Bank-owned properties – 43%
  • Short sales – 25%
  • Equity sales – 31%

For those readers who prefer the median sold price for houses and condos combined, September’s combined median sold price was $175,000; up from August’s combined median of $170,000.

Month Year

# Sold

Sold Price

Sold Price per SqFt

Average DOM

Sep 2009

494

$185,250

$103.31

129

Aug 2009

476

$179,950

$102.84

117

Jul 2009

515

$180,000

$103.45

126

Jun 2009

536

$180,317

$104.09

136

May 2009

424

$175,000

$102.29

139

Apr 2009

428

$189,950

$105.55

133

Mar 2009

367

$200,000

$105.94

133

Feb 2009

294

$204,000

$111.45

133

Jan 2009

232

$200,000

$113.15

119

 Dec 2008

294

$218,950

$121.74

145

Nov 2008

269

$220,000

$122.24

152

 Oct 2008

354

$230,000

$131.43

144

 Sep 2008

358

$239,250

$136.72

145

 Aug 2008

321

$250,000

$142.14

140

 Jul 2008

397

$251,000

$145.48

139

 Jun 2008

369

$262,500

$148.05

142

 May 2008

314

$260,215

$152.30

134

 Apr 2008

314

$275,000

$154.05

172

 Mar 2008

238

$274,000

$150.93

166

 Feb 2008

195

$289,000

$156.48

149

 Jan 2008

165

$285,000

$170.23

146

Dec 2007

228

$283,950

$167.22

143

Nov 2007

204

$299,750

$172.24

126

Oct 2007

241

$296,000

$173.55

116

Sep 2007

230

$299,945

$179.46

114

Aug 2007

311

$305,000

$182.49

118

Jul 2007

300

$315,000

$189.78

113

Jun 2007

329

$320,000

$196.78

104

May 2007

364

$313,200

$190.81

107

Apr 2007

320

$309,500

$193.93

121

Mar 2007

324

$315,000

$189.61

121

 Feb 2007

269

$315,000

$191.18

126

 Jan 2007

245

$312,900

$199.79

133

Dec 2006

291

$309,000

$193.51

114

Nov 2006

281

$318,000

$197.32

111

 Oct 2006

363

$312,400

$201.44

105

Sep 2006

344

$314,950

$198.08

98

Aug 2006

349

$325,000

$210.92

94

Jul 2006

373

$335,000

$210.62

93

Jun 2006

424

$339,000

$214.54

91

May 2006

374

$339,950

$219.05

99

Apr 2006

368

$334,600

$212.08

88

Mar 2006

387

$340,000

$215.54

99

 Feb 2006

283

$335,000

$217.29

101

 Jan 2006

274

$365,000

$216.38

98

Dec 2005

333

$355,000

$217.31

89

Nov 2005

385

$349,000

$220.00

81

Oct 2005

484

$359,450

$223.06

77

Sep 2005

531

$354,500

$219.26

77

Aug 2005

582

$360,500

$220.52

73

Jul 2005

608

$353,000

$218.99

71

Jun 2005

679

$350,000

$215.69

69

May 2005

644

$333,250

$209.95

68

Apr 2005

558

$326,750

$207.57

77

Mar 2005

584

$325,000

$200.17

81

 Feb 2005

342

$318,500

$197.54

88

 Jan 2005

341

$310,000

$195.19

85

Dec 2004

450

$312,500

$190.72

77

Nov 2004

448

$309,950

$191.62

63

Oct 2004

512

$299,250

$188.72

53

Sep 2004

496

$292,750

$185.78

61

Aug 2004

505

$285,000

$182.95

56

Jul 2004

544

$304,300

$179.28

61

Jun 2004

533

$285,000

$172.16

65

May 2004

476

$278,750

$169.64

65

Apr 2004

526

$259,950

$158.08

67

Mar 2004

508

$245,000

$142.56

71

 Feb 2004

365

$237,000

unavailable

81

 Jan 2004

379

$229,000

unavailable

78

Dec 2003

441

$240,000

unavailable

82

Nov 2003

444

$220,750

unavailable

78

Oct 2003

430

$219,880

unavailable

76

Sep 2003

587

$223,000

unavailable

71

Aug 2003

512

$220,000

unavailable

75

Jul 2003

533

$210,000

unavailable

77

Jun 2003

475

$207,000

unavailable

77

May 2003

450

$198,950

unavailable

85

Apr 2003

478

$197,750

unavailable

82

 Mar 2003

428

$192,000

unavailable

77

 Feb 2003

321

$186,895

unavailable

79

 Jan 2003

316

$186,000

unavailable

96

Dec 2002

379

$193,500

unavailable

93

Nov 2002

423

$190,000

unavailable

82

Oct 2002

483

$189,900

unavailable

83

Sep 2002

410

$174,000

unavailable

85

Aug 2002

459

$180,000

unavailable

74

Jul 2002

469

$176,000

unavailable

83

Jun 2002

445

$185,000

unavailable

80

May 2002

470

$178,450

unavailable

77

Apr 2002

360

$169,500

unavailable

93

 Mar 2002

377

$169,000

unavailable

84

 Feb 2002

323

$170,900

unavailable

89

 Jan 2002

268

$172,475

unavailable

99

Dec 2001

287

$182,000

unavailable

86

Nov 2001

323

$161,500

unavailable

85

Oct 2001

357

$166,500

unavailable

79

Sep 2001

355

$168,000

unavailable

81

Aug 2001

448

$160,350

unavailable

84

Jul 2001

433

$169,900

unavailable

90

Jun 2001

426

$166,225

unavailable

96

May 2001

404

$162,050

unavailable

97

Apr 2001

370

$158,750

unavailable

94

 Mar 2001

385

$159,900

unavailable

97

 Feb 2001

294

$159,950

unavailable

103

 Jan 2001

264

$165,000

unavailable

102

Dec 2000

272

$156,500

unavailable

100

Nov 2000

355

$154,500

unavailable

93

 Oct 2000

348

$153,000

unavailable

98

Sep 2000

356

$160,000

unavailable

104

Aug 2000

412

$163,375

unavailable

94

Jul 2000

368

$155,000

unavailable

110

Jun 2000

466

$165,845

unavailable

104

May 2000

363

$158,000

unavailable

105

Apr 2000

312

$155,000

unavailable

113

 Mar 2000

339

$162,700

unavailable

102

 Feb 2000

244

$149,620

unavailable

110

 Jan 2000

217

$156,000

unavailable

112

Dec 1999

264

$155,000

unavailable

118

Nov 1999

293

$149,900

unavailable

98

Oct 1999

289

$147,895

unavailable

108

Sep 1999

311

$157,000

unavailable

106

Aug 1999

360

$148,500

unavailable

112

Jul 1999

375

$147,800

unavailable

105

Jun 1999

372

$150,000

unavailable

103

May 1999

307

$145,500

unavailable

106

Apr 1999

324

$151,700

unavailable

111

Mar 1999

308

$151,000

unavailable

121

Feb 1999

249

$148,900

unavailable

120

Jan 1999

210

$143,000

unavailable

115

 Dec 1998

265

$140,000

unavailable

118

 Nov 1998

279

$153,000

unavailable

126

Oct 1998

286

$142,825

unavailable

115

Sep 1998

279

$144,500

unavailable

102

Aug 1998

331

$145,000

unavailable

113

Jul 1998

335

$150,000

unavailable

108

Jun 1998

351

$148,500

unavailable

103

May 1998

302

$145,500

unavailable

99

Apr 1998

235

$149,000

unavailable

111

 Mar 1998

267

$142,500

unavailable

114

Feb 1998

201

$139,900

unavailable

126

 Jan 1998

165

$149,490

unavailable

131

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 – October 2009.

78 comments

  1. Sully

    Shelley, I understood your comment. Thats the reason I mentioned a comment by BB.

    Zillow has the house zestimated at 980K. The bank held paper for 590K. The bank wants to sell, hence the 382K listing.

    I’m sorry if you think the house should be selling for more, but I think its priced correctly for the Reno area. Even though I wouldn’t buy it at the current listed price, it would probably be a good buy for someone that needs two houses in one location. 🙂

    Also, on bank owned properties you can have it inspected as a condition of purchase. The bank doesn’t argue, but might put a time limit on getting it done, they don’t want to wait a month for an inspection. If there are any major faults in the house, an inspection would show it and you could back out.

    I still think its price right, even if it is in Caughlin Ranch. The fact its going for far lower than would be expected, this might be a sign of things to come. The house on Muirwood is another example. The high end is starting to collapse and reality is setting in with the banks. Its not personal, just business.

  2. Walter

    For the sake of every homeowner in Reno, let us hope that this house on Juniper Trail does have some issue with it. Because if this happens to represent a new aggressive pricing strategy by banks and their REOs, that is sobering.

    Maybe the bank is hoping to create an auction mentality?

  3. bob c

    walter and everyone else—-

    that home could be an epic listing and all
    info about its condition and what it gets
    taken out for will be a huge sign of our future

    if i were a realtor, i would get down there right away (i’ll bet the place is over-run) and find
    out all i can

    no time for specualation on this one—we need
    facts

    thank you in advance to any and all facts about
    this property

    sincerely, bob c

  4. bondstevenbond

    “For the sake of every homeowner in Reno, let us hope that this house on Juniper Trail does have some issue with it. Because if this happens to represent a new aggressive pricing strategy by banks and their REOs, that is sobering.”

    Oh Walter. Should we renters and first time homebuyers really shed a tear for you homeowners? The same is true for homes and women. One man’s dream is another man’s nightmare.

  5. FutureRenoHomeBuyer

    Green,
    Yes, I toured 4280 Juniper Trail about 3 weeks ago. At that point, the price was $575k. I felt that that was a bit rich, even for Caughlin Ranch.

    The place definitely has potential. Someone with high level handyman/contracting/woodworking skills could do alot with it. As my RE Agent said, it’s one way to buy into a very high end area.

    However, I would call the place “unfinished” at best — at least the downstairs. The “finished” basement would require tens of thousands of dollars, minimum, to make it liveable. We are talking finishing off what looked to be an ambitious renovation project. There is one really nice wood panelled and green room. Looks like a nice poker room. The other rooms require electrical/paint/panelling/carpeting, etc….

    Additionally, although it is advertised as being on a .5 acre lot, there wasn’t much room to roam. Felt to me like the house took up all the usable space on the lot, even though it is multi-level.

    In short, I felt it required too much work to interest me at $575. Having no real yard also was a detractor. What was available was heavily sloped. Prop taxes were also a downer, but no one in that neighborhood will pay cheaply on prop taxes. At $382k, someone with significant contracting skills/connections could really do something with it, but I’ll estimate you’ll need $150-200k, minimum, to get the place where you want it. I hope this helps. It’d be great if someone could take this place and finish it off, but I think a builder/contractor would be the best fit. FWIW.

  6. johnny

    reno newbie stated:

    “unemployment must be solved to turn market”

    unemployment is a LAGGING indicator!

    and if you think there is more downside than $73/sqft in caughlin ranch.. well you simply should never buy..

  7. Worried Guy

    Johnny,

    Unemployment is running at well over -200,000 jobs per month in the U.S. You need a minimum of +200,000 jobs just to cover new entrants into the workforce. In addition, the U.S. needs now another 7 million quality paying jobs to make up for the last 10 years’ loss. It is not a lagging indicator in this instance because the average consumer in the U.S. does not have sufficient savings to make up the difference of lost employment. The lack of savings is the direct result of misguided monetary and tax policies ongoing for decades now. In addition, there has been over 6 months of consumer credit contraction numbering well over $10 Billion per month. These types of numbers on a percentage basis were not even witnessed in the early 1930’s in the U.S. A home in Caughlin Ranch could go for under $50 per square foot to match the real income and employment levels in the Reno area. There is a long history of severe undervaluations at the real bottom once a financial bubble bursts. This being one of the largest ‘credit’ financial bubbles in U.S. History should see the same fate. It is true the Gvt., Fed et al are trying every trick in the book from breaking accounting rules to monetizing debt, but in the end it comes down to income and employment. Both are severely lacking in this economic environment.

  8. Tanner

    “in the end it comes down to income and employment.” ahh yes.

    Did you all see where Bailey, Banks & Biddle overpriced jewelry stores are closing at Meadowood and Summit malls? It seems that when the HELOC spigot got turned off, people lost their ability to buy things they can’t really afford.
    Give it 5 more years, and the Summit Mall will be a fine collection of yogurt shops, pizza joints, and Payless Shoes. Unless the whole place gets turned into a giant Wal-Mart. It will fit right in when the houses in Arrowcreek are selling for $275K, and houses in Double Diamond are selling for $125K.

  9. johnny

    worried guy

    I was just trying to point out that unemployment will not go down untill AFTER the economy has entered a recovery.

    That has been true with every recession and in that regards this recession will do the same.

    now if you want to talk about unemployment claims then that IS a leading indicator, or even non-agricultural payrolls which is a coincidence Indicator that’s fine.

    but if anyone is thinking the recover won’t start until unemployment goes down, then they are mistaken.

  10. johnny

    Besides if someone thinks they can buy in Caughlin ranch for under $50/sqft, they are simply trying to time the market.. and as well know that is much easier said than done..

    For me, I’m just happy I paid $78/sqft and not $200+/sqft back in 04′-05′.

    I was patient enough to wait for 5 years! Life is too short for me to sit around and wait another 5 years to buy a house!

  11. skeptical

    Johnny,
    Congrats on your home purchase. Seems to me you made the right call. You are also correct that unemployment is a lagging indicator of economic expansion.

    However, unemployment is NOT a lagging indicator of real estate prices. It is a leading indicator. People with jobs buy houses. People without jobs do not. People without jobs after a long enough stretch get foreclosed upon.

    Further, I think the rest of the country will be in an economic recovery before Nevada. Nevada is very dependant on tourism, which will not rebound until after a national recovery is under way. After a few months of brisk business, the casinos, hotels, restaurants, and bars of Reno and LV may stop firing/start hiring, but not until.

    So, bottom line. A national recovery will lead to increased tourism, which will lead to a stabilization or improvement of unemployment in Reno, which will lead to a stabilizing real estate market. I think we are a few steps away from a stabilizing real estate market. No reason to buy before springtime, IMHO.

  12. Carney

    before springtime?

    springtime of 2013.

  13. Worried Guy

    Johnny,

    Busts follow booms and especially booms based from misguided monetary and tax policies that result in massive false credit and debt bubbles. The larger that type of boom, the larger the bust. The contraction in credit and the expansion of job losses are telling us that the bust in housing and banking is not over yet. Soon, we are going to see a massive move toward the continued reconciliation of this crony capitalism. Do not be fooled by some temporary juice in the equity markets or commodities. Bearishness against the USD has reached record lows. We could see a huge counter move if equity and commodity markets start to tumble. In addition, a renewed recognition that the banking crisis has not passed is going to put pressure on real estate valuations once again. Just my thoughts, but congrats on your purchase. I agree life is too short to worry about tomorrow sometimes and you did at least get 2002-03′ pricing so that’s an accomplishment in and of itself. Maybe keep some powder dry for future bargains.

  14. smarten

    Johnny, I too congratulate you.

    If your cost/square foot is less than the comparable cost/square foot to replace, this tells me you’re never going to see new, replacement construction…period. If you believe new construction will resume sometime in the future; and the cost of materials/labor will exceed the cost/square foot you’ve paid; then IMO you’ve made a savvy purchase and it doesn’t matter that in the near term future prices/square foot may drop lower [BTW, so will your choices]. Stated differently, time heals all wounds.

    And thanks for sharing the details and reasoning behind your recent purchase!

  15. bob c

    if real estate prices are going to fully collapse,
    then there are many financial ways to play besides
    not buying a home

    short sell REITs, home price indexes, banks and
    if we are in for a depression the dollar and most
    asset classes

    i knew a doctor when i was a kid that buried gold
    under his home and had guns because the economy
    was going to collapse and that was like 40 years ago….i guess he’s still waiting for armagedon

    and if it does occur, his preparations will probably be mute anyway

    if you can buy a home for less than the cost to
    rebuild it………i also agree life is too short,
    no need second guessing your deal and be overjoyed you didn’t buy the bubble and face the
    misery of a foreclosure

    its hard not to bite during a mania—that
    took some real restraint, so congratulate yourself and enjoy

  16. johnny

    I appreciate the congrats folks.

    BTW the house previously sold for $329k in 2nd quarter 2006 or 42.5% of the “bubble” price.

    I will indeed keep some powder Dry worried guy 🙂

  17. DownButNotOut

    Off the subject a little but if Arnie passes the bill now in front of him making handgun ammo no longer available without it being registered in California, and if Obama’s IRS is successful in passing HR45, the law requiring ALL guns be registered for a $50 fee with the IRS, then keeping our powder dry might be the least of our worries.I’m not a conspiracy nut, but I do like the Government staying out of my life to the degree it’s practical.

  18. John Rusin

    For accuracy’s sake, I have to correct you… HR45 is nothing as you described. It’s a good idea to check snopes.com before you spread rumors.

  19. DownButNotOut

    JRusin – per Snope ‘In a nutshell, the Blair Holt bill would; Prohibit possession of any handguns or any semiautomatic firearms that can accept detachable ammunition–feeding devices by anyone who has not been issued a firearm license’ It goes on to say all these guns need to be registered, unless they are of ‘antique’ status.

    I wrote’if Obama’s IRS is successful in passing HR45, the law requiring ALL guns be registered for a $50 fee with the IRS’

    Sorry JR but it reads the same to me. HR45 is the Blair Holt bill.

  20. John Rusin

    I’m sorry to correct you, but you are making little sense. The IRS does not push bills through Congress. There is nothing in the bill that says anything about a $50 fee or any involvement by the IRS. It basically proposes selling guns only through licensed dealers.

    Please, this is a real estate investment board. Take the gun talk to an appropriate forum.

  21. johnny

    well that ended on a sour note! lol

  22. bob c

    Wait a minute……i’m a lobbyist for the IRS.

  23. Sully

    bob c I hope you forgot the 🙂 in that last comment.

  24. skeptical

    Bob C,
    A little late for a reply to your post, but this thread is drying up anyway, so here I go.

    “i knew a doctor when i was a kid that buried gold
    under his home and had guns because the economy
    was going to collapse and that was like 40 years ago….i guess he’s still waiting for armagedon.”

    Well, if that guy really did buy his gold 40yrs ago (1970), he got it at close to $35/oz. As many are likely aware, gold is now trading at ~$1,050/oz. I defy anybody out there to find a better trade than that one in the time frame specified. And, as long as the Fed is hell bent on printing our greenback into oblivion, I suspect the next 40yrs won’t be so bad for gold either.

    But, this is a real estate blog, so I’ll tie it in to the subject matter. Real assets will increase in value due to this massive money printing experiment underway. Even the most bearish out there need to consider that if the quantitative easing takes hold, that house you purchase today for $200k will sell for much, much more by the end of the decade. The trend hasn’t begun yet, but when it happens, it’ll be like moonshot.

    Now, don’t get me wrong. I don’t believe that the underlying value of real estate will increase meaningfully above historically norms anytime soon. But I do believe the value of our fiat currency will implode.

  25. Worried Guy

    Or the value of the $200K home drops by another 50% and the $1000-USD today becomes worth $5000-$10,000 over the period of time. Commodities, equities, real estate, wages-jobs all decline as debt pay down becomes the order of the day. That would really blow everybody’s minds. Bearishness on the USD is now at 97-98% levels. Bullishness on USD-3%. This is an unheard of lopsided trade that could unwind rather sharply.

  26. bob c

    completely understood, but the gold was so he
    could buy goods…not for capital appreciation

    and i agree…..the goal is to inflate our way out
    of housing crisis……the value of the home
    goes up, but in real terms it loses value because
    the inflation rate will exceed the rate of home
    apprecation

  27. bob c

    deflation thought gives me a headache…so
    i’m gunna play ostrich on that topic and just
    assume the U S will survive relatively intact

  28. DownButNotOut

    Real Estate blog? Crap – I must have transposed NAR search to NRA.Won’t happen again.

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