Below please find May’s Market Condition Report for the Northern Nevada area provided by our friends at First Centennial Title Company of Nevada.
From May’s report…
Overview: Demand and price increased from last month for both SFR and Condo as the market continues to firm and shows signs of momentum on the demand side.
Percent Selling (Market Efficiency): Is now very favorable to the seller (up for the 2nd month) and pointing to a market where increasing prices are much more likely.
Weeks Supply Given Demand (Absorption Rate): The absorption rate declined and is holding constant for SFR. It declined two weeks for CONDO. The sustained negative movement of the absorption rate appears to be putting positive pressure on the price schedule (more so for Condo). However, the fall in the absorption rate is not as dramatic as other markets (Las Vegas). Consequently, price increases will most likely move at a slower pace in the Reno area market.
Ratio of Supply to Demand: Very slight change this month. The overall ratio of supply to demand is in decline and has reached a point where price is beginning to react from an overall perspective. Note: An average ratio of 4.8 sellers to every buyer is on the upper side of the range to sustain a positive price trend. The ratio is being driven upward by declining supply and increasing demand. This is different than other areas where supply has been the central actor (declining) and demand holds constant.
Click on the report below to access…
Related post: FCT’s Market Condition Report – April 2012