This month the RSAR has released two versions of their Monthly Market Talk report – a report for the Reno market, and one covering the Fernley market. These reports contain a lot of good info as well as great graphs. Check them out here:
From the “Conclusions” in the Reno-Sparks report:
- October closings were up from September but volume remains at 2005 levels.
- The median price remains relatively flat.
- Short Sale closings continue to increase as a percentage of the total market mix.
- The volume of short sales closings year over year has increased by 230% (October 2008 - 40 short sales, October 2009 - 134 short sales)
- Bank Owned closings continue to decline due to decreased inventory in that category.
- The increase in sales under $200,000 for the past three months may be attributed to first-time buyers taking advantage of the tax credit and the available inventory at the under $150,000 and under $200,000 price points.
- The median home price is in line with the median household income in recent months for the first time since 2002.
8 comments
I’m seeing median home prices hovering 180-190k, or did prices just correct to 130k median??
Household income x 2 median incomes {husband/wife}??
Those measurements don’t close.
Looky….Here’s a real contribution to this site/consumer….After taxes,
Association fees,Maintenance, Go ahead and knock another $500 off of that $1300 monthly median rental…
There now your rent is $800…RENT-ON
Guy, on page 7 (Historical Market Absorption) there is a box that says:
Too few sales for the inventory
Too much inventory for the sales
Both affect the market.
Whomever put that box in should be named realtor of the month!
RE: “Household income x 2 median incomes {husband/wife}??”
Traditional mortgage qualification is 3X income, not 2X. Median household income is ~$58K, median home price is ~$180K.
Guy’s right, they’re both in line.
But that’s only part of the story. While the median income household can now afford the median priced home, a very large component of that purchasing group is already in a house and upside-down, in no position to buy or move up.
These are abnormal economic times and the simpler metrics like income:price - which are good market indicators in normal times - are not sufficient.
Where is the data for the 58K median household income derived? Is it a recent accounting that includes the current unemployment and under-employment numbers? Just wondering because my income as a small business owner is about 35% of what it was a couple of years ago and the previous 10 years before that. I have people walking in my door every day asking if I have any work. Resumes show up in my mail every day too. I realize that my personal circumstance isn’t necessarily indicative of the whole communities situation, but I know a lot of people in the same boat, or should I say ship.
Zen, almost all references to median income come from the 2000 Census and adjusted to date from that year.
Do you think the 58K median is high or low? One site shows zip code 89511 with a median of 106K and zip code 89502 at 49K. But doesn’t show Reno as a whole. Also, 89436 is at 88K.
I doubt unemployment numbers (other then a historical average) are included in any data, if it is derived from the 2000 Census - as the high unemployment hasn’t showed up in the census (yet).
OOps, sorry - the above zip code numbers were average household incomes not median. Here is the site if you want to look for yourself.
http://homes.point2.com/Neighborhood/US/Nevada/Washoe-County/Reno/Arrowcreek-Demographics.aspx
The true “Traditional” mortgage is 3 x single income….And prices are no where near in-line with those levels….Hasn’t there been enough cooking of the books?….Next
No, Edward, 3X household income.