Yesterday, KTVN Channel 2’s John Potter aired a report on decreasing foreclosure rates in Reno-Sparks. In case you missed it, you can catch John’s report, Nevada, Washoe County Foreclosure Rates Tumble, in the video below…
In preparing for his report John Potter contacted me to provide some market data and commentary. While compiling the numbers for the story I found an interesting trend that I thought I’d share with the blog. Specifically, the relationship between the number of bank-owned properties (REOs) sold and median sales price. Namely, the higher proportion of REOs sold in a given month, the lower that month’s median sales price.
Now, perhaps many readers will view this observation as nothing novel or noteworthy, but when I pulled the numbers I was surprised with just how striking the relationship was. Check out the year-to-date numbers in the table below…
|month (2012)||percentage of REOs||median sales price|
If any statisticians reading this would like to calculate the correlation between the proportion of REOs sold and median sales price, I’d love to hear what you come up with. If you would like additional data for your calculation, let me know.
And if you really would like some fun, use your analysis to predict what October’s median sales price will be based on the percentage of bank-owned properties sold. At the moment, less than ten percent (9.8% to be precise) of houses sold in October have been REOs. Assuming that percentage holds for the entire month, what will be October’s median sales price?
Lots of Halloween-related events this weekend. Have a safe an enjoyable weekend.