Below please find the June 2012 Market Condition Report for the Reno-Sparks Area provided to us by our friends at First Centennial Title.
Click on the report to enlarge…
- Overview: Demand has cooled somewhat from last month while supply is very constant in the current range.
- Percent Selling (Market Efficiency): Is now very favorable to the seller (up for the 3rd month) and pointing to a market where increasing prices are more likely.
- Weeks Supply Given Demand (Absorption Rate): The absorption rate has shifted upward. This is not a good sign for further price increases. In order to sustain meaningful increases in price, further reductions in the absorption rate are necessary.
- Ratio of Supply to Demand: Very slight positive change this month. 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. At the current ratio, supply and demand prices will neither advance nor decline in a meaningful way. As an example, in the Las Vegas market there is a ratio of supply to demand of about 1.05. This ratio is consistent with a rapidly unambiguous rising price schedule driven by rock bottom listing inventory.
Related post: FCT’s Market Condition Report – May 2012