February’s median sold price rose to $171,500 after plunging five percent in January to $167,000.  Similarly, February’s sold price per square foot also came back from January’s plunge – rising to $101.42 from January’s record low $97.06.

The number of houses sold in February was a robust 330 units – a very strong showing for a February.

Days on market dropped noticeably to from 133 days to 100 days. We haven’t seen a number this low since the bubble year of ’06.  Could this be a sign that the banks are starting to get a handle on processing short sales more efficiently?

Speaking of short sales, February’s sales breakout was:

• Bank-owned properties – 37%
• Short sales – 35%
• Equity sales – 26%

Short sales continue to comprise over a third of monthly sales.

For those readers who prefer the median sold price for houses and condos combined, February’s combined median sold price was $163,900; up 2.8 percent from January’s combined median of $159,400.

Note: The medians table above is updated on a monthly basis. The median home price data reported covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS - March 2010.  Note: This information is deemed reliable, but not guaranteed.

Ouch!  January’s numbers took a big plunge.  January’s median sold price dropped to $167,000.  That’s more than five percent off of December’s median sold price.

Similarly, the median sold price per square foot also experienced a large decline.  January’s $97.06 per square foot represents a four percent drop from December’s number, and also the first time we’ve seen the sold price per square foot fall below the $100 mark.

FWIW, January’s $97.06/square foot represents a 56 percent fall from the peak sold price per square foot of $223.06 reached in October 2005.  The latest median sold price of $167,000 is off 54 percent from the median high of $365,000 reached in January 2006.

To look at it another way, today’s median price of $167,000 has returned to 2001 levels.

The make-up of January’s sales is as follows:

• Bank-owned properties – 40%  
• Short sales – 35%  
• Equity sales – 24%

Short sale closings bumped up from 30 percent of December sales to 35 percent of sales in January.  Hopefully, this indicates quicker turnaround times for short sale transactions going forward.

For those readers who prefer the median sold price for houses and condos combined, January’s combined median sold price was $159,400; down 2.8 percent from December’s combined median of $164,000.

Note: The medians table above is updated on a monthly basis. The median home price data reported covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS - February 2010.

Compiling the information below is something I’ve been planning on doing myself, but have not yet found the time to do so.  So I was very pleased when during our last office meeting our managing broker distributed the data below.

What you’ll see below is 2009 sales broken out by MLS areas on a variety of criteria: short sales; bank-owned sales; sales by volume; and sales by units.  Compiling 2009 sales in this way is not as easy as you might think.  It’s a manual process that probably took our broker a couple of hours or more.  So thank you to Chase’s Eric Crosby for providing this information.

Before we get started, readers unfamiliar with the names and boundaries of our regional MLS areas may want to check out this MLS map.

The first table shows the top ten MLS areas ranked by units sold.

As you can see Stead, not only topped the list (with 538 houses sold), but also eclipsed all other MLS areas throughout Reno-Sparks.

This next table shows the top five MLS areas ranked by volume sold.

MLS area 165, Reno’s South Suburban area (ArrowCreek, Saddlehorn, Fieldcreek, Southwest Vistas [a.k.a. Grandview Estates], and Mountaingate), took the top spot with a total sales volume of $104.5M.  Note, however, this volume was achieved with only 182 units sold and a median sales price of $519,500.  Compare this price to the median sale prices of the next four areas, which are in the mid- to low-$200s.

Over 5,200 houses sold in the Reno-Sparks area in 2009 for a total sales volume of $1.165B.  Distressed properties accounted for over half these sales and volume.  Short sales accounted for 21 percent of 2009 sales, and bank-owned properties accounted for 34 percent of bank-owned sales.

This final table shows the top three MLS areas where the greatest number of short sales sold, as well as the three MLS areas where the greatest number of bank-owned properties sold.

Note: The data above covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS - January 2010. 

Last week I received an email from a friend and fellow REALTOR who works the San Francisco market.  This agent’s name is Cece Blase and she created and writes for the blog, SF Real Estate Buzz.com.

Cece’s email was a sort of year end wrap up of San Francisco’s housing market.  That market is occasionally brought up on this blog, so I thought I’d share some of Cece’s charts and commentary.

If you have more questions about the SF market or are in need of a real estate agent there give Cece a call.  She can be reached at:

Cece Blase
Paragon Real Estate Group
San Francisco
415 577 0809
www.sfrealestatebuzz.com

Here’s some exceprts from Cece’s latest market report (click on the charts to enlarge):

As the number of sales have declined, the average days on market, the number of price reductions, and the number of listings withdrawn from the market without selling rose dramatically — all are signs of sellers and/or listing agents not wanting to recognize new pricing realities in the market.

Still, the luxury home market in San Francisco is very much alive, and of those homes that did sell in 2009, 35% - 40% accepted offers within 30 days of going on market, and on average closed within 3% - 4% of the original asking price. The demand isn’t as frantic as it was in previous years, but there is still strong demand for well priced luxury properties. A fair number is still receiving multiple offers and selling for over asking price. Values appear to have stabilized after their large drop, and may have - it’s too soon to be definitive - started to tick up in the last quarter.

Change in SF Home Sales by Price Range
With the big changes in economic conditions, sales at the lower price ranges have strengthened and those at the higher have weakened. Many first time buyers entered the market in 2009 and they typically purchase less expensive homes. And the foreclosure home market is still predominately a feature of the low end of the market, clustered in the less affluent neighborhoods. Finally, lending conditions and tax credits are mostly geared to the low and mid range home.

Luxury House Sales by Neighborhood
High end houses are typically found in a handful of high prestige neighborhoods, which during the height of the market expanded to the Noe/Castro/Haight area. The northern neighborhoods around Pacific Heights have fared the best in 2009, with barely a budge in overall sales numbers. Other areas saw large declines.

In case you missed it, today’s Reno Gazette-Journal had a piece by Jason Hidalgo on local real estate auctions; see Real estate auctions, on the rise, attract new audience.

During his research for the story Jason interviewed this blog’s own Mike McGonagle, as well as yours truly.  These interviews were conducted independent of one another, and as I read the story I got a kick at the differing viewpoints given by Mike and myself.

Note to self: next time try to work the name of the blog into the interview.

The recent flurry of home buying is still alive and well in Reno and Sparks, NV.  Almost 500 houses were sold during the month of September; 494 houses to be precise.  I can’t help but think much of this activity is driven by the impending expiration of the first-time homebuyer’s tax credit [currently set to expire December 1, 2009].

To put the recent number of home sales in perspective consider that in the 3rd quarter of 2008, 1,076 homes were sold.  Compare that figure to the 1,485 sold in 3Q 2009 – a 38% increase.

The big news for September, however, is that the median sold price jumped 2.9% over August’s figure, to $185,250.  With June, July and August’s medians holding steady at a low of $180,000, does September’s increase in median sold price indicate a bottom was reached?  [Note: That last question may constitute comment baiting.]

Remember, we’re always told the only way to recognize a bottom is in hindsight.  Perhaps May’s median sold price of $175,000 median was it.

The make-up of September’s sales is as follows:

• Bank-owned properties – 43%
• Short sales – 25%
• Equity sales – 31%

For those readers who prefer the median sold price for houses and condos combined, September’s combined median sold price was $175,000; up from August’s combined median of $170,000.

Note: The medians table above is updated on a monthly basis. The median home price data reported covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS - October 2009.

Nevada’s unemployment rate hit another new high in July.  See Jobless rate hits new high.

According to the RGJ article Washoe County’s jobless rate now stands at 12.2%, and statewide the unemployment rate has hit 12.5%.  For those of you keeping score Nevada now holds the third-highest jobless rate in the country.  Only Michigan, at 15 percent, and Rhode Island at 12.7 percent have higher rates.

One of the many thoughts that crossed my mind as I read these figures was how many real estate agents have left the building?  Longtime readers will recall that I occasionally post local real estate licensee statistics.  These stats presented through Nevada’s Real Estate Division show the number of Active and Inactive licensees by County.

Over the past couple years, though we have observed a decrease in total (both “active” and “inactive”) licensees, the decline has not been as pronounced as one might expect.  Instead, Agents simply have been placing their licenses in “inactive” status rather than totally terminating their licenses.

Btw, an inactive status means that the real estate professional is not currently affiliated with a broker and is not allowed to conduct any real estate transactions.  However, inactive agents are still required to renew their inactive license annually (and pay the $180 renewal fee); they just can’t conduct any business.

Why place one’s license in “inactive” status then?  Well, there is a substantial cost savings from not having to pay MLS, lockbox, RSAR, NVAR and NAR membership dues while inactive.  Additionally, when the time comes to reenter the business, activating an inactive license is much easier and less expensive than going through the licensing process all over again.

However, that being said, even the $180.00 renewal fee for maintaining one’s inactive status becomes too much for some and eventually the license is simply “let go”.  And that is what the most current numbers from the Nevada Real Estate Division show.

From March 2009 (the last time NRED released licensee stats) to August, the number of Active licensees in Washoe declined by only 45 agents, or 1.6%.  However, the number of licensees in “Inactive” status fell by 205 agents, or 20% of March’s Inactives during the same time period.

Washoe County currently has 2,725 Active licensees.  This number is down 15.6% from the peak of 3,229 licensees in August of 2007.

See all the numbers below.

Source: Nevada Real Estate Division – August 2009
http://www.red.state.nv.us/realestate/stats/stats_history.htm

Reno Ignoramus is strange, old friend. Though I’ve never met him, seen him, or even know his real name, as my second commentor ever on this blog (behind Gotlots who mysteriously disappeared) he has this uncanny ability to interpret my actions or in-actions with remarkable prescience. Not so long ago he noted in some comment that I’d lost interest in this blog.

Ouch… but dead-on accurate. Why? Because I personally don’t think residential real estate in the US is worth looking at as an investment until 2013-2014. Sure, there are exceptions, but I’d guess I’m more bearish than even Bantering Bear himself.

If there’s one thing this blog has taught me that I’m absolutely most grateful for, is the ability to recognize the voice of truth. I have learned to give critics and contrarians a fair shake, digesting what they say in all seriousness. Because often, even if their opinions go against conventional lemming wisdom, when you take an objective look at a message supported by facts that make sense, it can be truth.

Data is data, and facts are facts. If accurately tracked without bias, we’re talking laws of nature that don’t lie. And the interpretive conversation about what these objective events mean make us all smarter about how to best prepare for a potentially tumultuous future.

So many people want to believe whatever it is they hold dear, despite ramifications, because it’s easier and less painful in the near term to shoehorn crappy news through existing mental framework aka defensive happy-filters that  make them feel better. "No problem, it’ll all work out because [insert personal savior or government entity] is looking out for my best interests, and I will receive the [insert favorite entitlement benefits prescribed by ideological belief system] that I deserve."

The world is what it is. Accept or deny it, the universe doesn’t care. Those who recognize reality and take appropriate actions are those that prosper. Those who don’t fall by the wayside.

I am in a short sale taking my licks. When we bought this house we could afford it, but now the tide has seriously turned. We will pay penalties for whatever happens, which is okay because, tritely, that’s life. Time to put ego aside, stop pointing fingers, embrace reality and move on.

The meek shall inherit the Earth? Not so different from Darwin’s message that those who adapt, survive.

You Are Here.

I had the opportunity to attend the launch of the Better Building Company and the raising of a new Mariah Power Windspire at the Altmann residence here in Reno.  The Altmann Residence is an innovative, exceptionally contemporary and sustainable green home of the highest quality with the goal to use 100% green building materials for major components of the house.  This is where the Mariah Power Windspire comes in.  This wind turbine gives you the power to create clean energy from the natural wind just outside your door.   To find out more about the Windspire go to www.mariahpower.com.

Fred Altman’s 20+year tenure in Northern Nevada began when he built the first home in Caughlin Ranch then on to Montreux, ArrowCreek and Lahontan.  Being the great innovator that he is and a believer in sustainable solutions before it became a common household word, the Better Building Company, a one-stop solution center for energy efficiency and sustainable construction was born.  Better Building Company performs energy audits, retrofit work, and green building in addition to installing renewable energy solutions including the Mariah Power Windspire.  If you are interested in energy efficiency for your home, reducing monthly utility bills, improving your home’s livability, installing renewable energy solutions, remodeling or building a new energy efficient home check out www.betterbuildingcompany.com.

April’s median sold home price for Reno and Sparks dropped below $200K in a big way.  April’s median sold price was $187,750.  Down 6% from March!

Buyers snatching up the distressed properties are fueling the fall.  54% of April’s sales were bank-owned properties, and another 19% were short sales.  April’s 408 sales represent a 12% increase over the number of sales for March and a 30% increase year-over-year.   In fact, we haven’t seen unit sales over the 400 mark since June 2006.

All of this buying is contributing to a fall in Active inventory.  April’s active inventory (units) is down 6% over March; down 12% Y-o-Y; and down 17% Y-o-2Y.  Prices are now at 2002 levels and 49% off our peak median sold price.

For those readers who prefer the median sold price for houses and condos combined, April’s was $181,000.

Note: The medians table above is updated on a monthly basis. The median home price data reported covers the cities of Reno, Nevada and Sparks, Nevada {NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS - May 2009.