June 2012’s market reports, provided by our friends at the Reno/Sparks Association of REALTORS®, have been released. This month’s reports contain a couple new charts: 1) Annualized Median Price by Area Group; 2) Median Price by Special Conditions.
Check out the complete reports at these links:
Commentary from the Reno/Sparks Market Report…
- June 2012 median price was up 3% to $170,000 compared to $165,000 in May 2012 and up 10.4% from the June 2011.
June ended the month with 492 sold transactions, down 5.2% from the prior month and down 8.6% from the same period last year. - While sales for June remain at near record levels, the past three months, we have seen a steady decline in the number of sales month-over-month. Demand and buyer confidence is strong, but inventory levels remain low. This is a contributing factor in the declining sales.
- June 2012 is the second consecutive month that the median sales price was up significantly year-over-year. We have not seen the signs of this trend since 2004-2005. Median price is up 10% over June 2011. Median price has been trending up for the past five consecutive months and is up 3% over May 2012. Low inventory and buyer demand is putting upward pressure on median sales price.
- Pending sales are a leading indicator of future closed transactions. New pending sales are up 3.5% from May 2012.
- Active inventory is down 31% from a year ago. For the fourth consecutive month, the Reno market has remained a seller’s market. We believe this trend will continue, as banks continue to adjust to state legislation and the National Mortgage Settlement.
- After nine months of declining new listings in the category of Bank Owned, June Bank Owned listings increased 59% over May 2012. This increase may be early signs of the banks adjusting to the AB284 and the National Mortgage Settlement. Even with this release of inventory, the June the month’s supply of inventory in the category of bank-owned property was at 1.4 MSI.
- Current Month’s Supply of Inventory in the Reno market is at 4.8 MSI showing the market as a seller’s market for the second consecutive month.
- Sold to asking price ratio has been on the rise since January 2011. In June, the sold to asking price ratio was at 98.6%. REALTORS® and appraisers struggle to justify today’s agreed upon price based on closed transactions that were originated several months ago.
Related post: RSAR Monthly Market Reports – May 2012
Chris Winn
I am a novice doing some research here and looking for the patterns…
New listings by month – lower than last year.
Short/REO % of listings – lower in the short term.
I keep thinking about these charts however …
http://www.lasvegasrealestatehome.com/images/las_vegas_notice_of_defaults_614.jpg and http://idx-images.cisdata.net/acnt/images/409/AR436409/file_manager//Chart_2.PNG
What happened to 2-3k / month NODs ? A paperwork challenge (must have original docs in order to file it, research time) and an artificial delay was introduced into the system (mediation, etc). The short term price effect is flat with a slightly upward price trend as only a trickle of those are coming to market. There are still the same number of distressed homes in the background but the time frame to push them through the system is longer now. At best, I think there will be a flat market extended out for a couple of years, but I think it is more likely that as a larger number of NODs reach the end of the delay and get sent out this temporary uptick will get wiped out and prices will start falling again.
What I really want to see is the data on how many properties are behind on their payments, and for how long. The foreclosures (or short sales) that the banks have not yet triggered but eventually will have to. There is a massive hidden supply, the price is a function of how much is let out vs. what seems a relatively constant demand. Technically the market could let out the supply over 5 years and the prices would probably not drop significantly; my question is whether there are a bunch of NODs about to come out of the pipe after the legislation delayed them ?
RSAR Monthly Market Reports – August 2012 | Reno Real Estate Blog
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