FCT’s Market Condition Report – December 2011

Posted on January 17, 2012 by Guy Johnson

Below please find December’s Market Condition Report for the Northern Nevada area provided by our friends at First Centennial Title Company of Nevada. (Click on the report to enlarge.)

From December’s report:

The Ratio of Supply to Demand measures the number of units of supply relative to the number of closings per month (demand). All other things being equal, the smaller this number, the tighter the area market. Green formatting signals relatively tight markets in the area segment. Weeks Supply Given Demand is the absorption rate (the number of weeks required to exhaust current supply given current demand).

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Home loan costs to increase

Posted on January 16, 2012 by Guy Johnson

[Ed. Note -- I received the email below from one of my colleagues in the lending arena; Lisa Fleck of Summit Funding. Lisa sends me news from time to time pertaining to home loans and financing. In her post below below Lisa explains how Congress' recent passaged of the Temporary Payroll Tax Cut Continuation Act of 2011 will increase loan costs to borrowers. I thought I'd share Lisa's information with this blog.]

Just before the legislature went on vacation for the holidays they passed the Temporary Payroll Tax Cut Continuation Act of 2011, extending the payroll tax for 2 months.  This payroll tax helps to pay for unemployment and social security.

Congress is funding this act by permanently increasing costs on home loans. 

Set to go into effect in April 2012, Congress has mandated that the annual FHA mortgage insurance premium be increased ten basis points, from the current 1.15% to 1.25%.  On a $150,000.00 loan this equates to a monthly increase of the mortgage insurance premium from $143.75 to $156.25. 

Additionally, effective April 1, a new G-fee of .10% has been added to conventional loans provided by all lenders in the country.  This fee is not a simple rate add, on but rather a yield add on.  The yield is the cost that lenders must pay Fannie and Freddie to buy the loan.  This cost is then passed onto the borrower and the cost that they have to pay for a rate.

It is anticipated that this yield cost will actually equate to .375% to .5% in additional cost to the borrower.  This cost can be incorporated into a higher rate or can be paid but the net result is that the rates on conventional loans have just increased and it has nothing to do with market conditions.

Example:  If the borrower was quoted a rate yesterday at 4% with 1% cost they would have to pay today 1.5% to get that same rate or they could chose a rate of 4.25% for 1% cost.

On a $200,000 loan this could equate to an additional $750.00 to $1000.00 in costs.

The reason why this impact is being felt right now is lenders are currently locking loans which will close in Feb and Mar, depending on the length of the lock.  It will take a lender 30-45 to sell that loan to Fannie and Freddie, which would then occur after April 1 making it subject to the .10% increase.

Your borrowers need to know about the changes to the costs of obtaining loans due to the legislation that has been passed.

This is explained very well on the 1/12/12 broadcast at www.thetbwsdailyshow.com. I recommend watching this short 5 minutes video – Your Buyers Pay More – Starting NOW!

Please let me know if I can be of any additional assistance or if you have any questions.

Lisa Fleck
Senior Loan Consultant 
Summit Funding, Inc.
775.824.3640
lfleck@summitfunding.net

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Nevada #1 in foreclosures for the 5th straight year

Posted on January 13, 2012 by Guy Johnson

Despite Nevada’s foreclosures dropping 31 percent in 2011 compared to 2010, the state’s 6-plus percent foreclosure rate was the highest in the country for the fifth consecutive year. Nevada’s 1 in 16 foreclosure filing rate is more than four times the national average of 1 in 69 (1.45 percent)

Which states had the highest foreclosure rates for 2011?

  1. Nevada: 6 percent (1 in 16 housing units received at least one foreclosure filing in 2011)
  2. Arizona: 4.14 percent (or 1 in 24)
  3. California: 3.19 percent (or 1 in 31)
  4. Georgia: 2.71 percent (or 1 in 37)
  5. Utah: 2.32 percent (or 1 in 43)
  6. Michigan: 2.21 percent
  7. Florida: 2.06 percent
  8. Illinois: 1.95 percent
  9. Colorado: 1.78 percent
  10. Idaho: 1.77 percent

Source: RealtyTrac® See the report here: 2011 Year-End Foreclosure Report: Foreclosures on the Retreat

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Lake Tahoe home prices drop 13 percent in 2011

Posted on January 12, 2012 by Guy Johnson

My Broker, Chase International, recently released the year-end market numbers for Lake Tahoe. (See the press release below). Units sold rose 1 percent year-over-year. Median price fell 13 percent.

Zephyr Cove, Nev. (Jan. 5, 2012) – Year-end home sales at Lake Tahoe are holding steady compared to 2010 with some indicators on the rise, according to a quarterly report released by Lake Tahoe-based real estate firm Chase International, which notes a one-percent increase in units sold around the lake.

The National Association of Realtors recently reported that existing home sales rose again in November and remain above a year ago, and the latest Tahoe housing market sales figures concur with this national trend. In fact, while real estate sales and prices took a slight dip around the Lake overall, the East Shore market segment saw a one-percent increase in median home price ($575,000) and a 35-percent jump in average price ($1,286,924). Volume sold on the East Shore was up 26 percent, while the number of units was down seven percent.

Although the number of units sold is up slightly, the median price of a home in Lake Tahoe is down thirteen percent to $365,000 from 2010’s year-end numbers. The average home price fell 14 percent to $607,683.

“High end home sales on the East Shore helped buoy the Lake Tahoe market,” said Susan Lowe, corporate vice president for Chase International. “It definitely is still a buyers’ market as average and median prices have continued to fall, but with units sold rising, we believe the market is strengthening.”

Truckee reflects this same trend, seeing a two-percent increase in units sold and a 17-percent rise in units sold for less than a million. The median price of a home in Truckee is $438,166 (down 10 percent) and the average price is $562,811 (also down 10 percent).

The condominium market around Lake Tahoe experienced a six-percent decline over 2010 in units sold. However, for units sold for more than $500,000, a notable 29 percent jump. Tahoe City experienced the most pronounced increase in sales over 2010 sales figures, with a three-percent rise in units sold and up 50-percent in units sold for over $500,000. South Lake Tahoe saw a 21-percent increase in overall volume sold, with median and average prices rising 14 and 69 percent, respectively. The median price of a condo in Lake Tahoe is $262,000 (down eight percent) and the average price is $348,868 (down 12 percent).

About Chase International

Headquartered in Lake Tahoe, Nevada since 1986, with eight offices in the region (Zephyr Cove, Glenbrook, Incline Village, Tahoe City, Squaw Valley, Truckee, South Lake Tahoe and Reno) and one in London, England, Chase International and its exclusive affiliations handles a large share of property transactions throughout the country. A recognized leader in the world of real estate, Chase International continues to grow having added 65 Realtors® to their ranks in the past twelve months.

With 240 professional Realtors® boasting an array of industry certifications and the highest volume per sales agent in the area, Chase International successfully represents homes at all price levels. For more information about Chase International, visit www.chaseinternational.com.

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Altos Research’s Reno listing report

Posted on January 12, 2012 by Guy Johnson

When I last posted the listing report from Altos Research I posed the question as to whether or not readers found value in the report. A few of you responded that you did, so I will continue to post these reports periodically. Please note, the metrics presented are for listings, not sales.

From the report: Reno’s median list price is holding steady; the asking price per square foot is trending downward; the average days on market is trending upward. Click on the report below to access the full report.

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Washoe County foreclosure-related recordings – December 2011

Posted on January 10, 2012 by Guy Johnson

Below are Washoe County’s Foreclosure Statistics for December 2011 provided by our friends at Ticor Title. The slight uptick in Notices of Sale can be explained by Ticor Title’s commentary below.

Commentary:  The Notices of Defaults increased slightly, but the majority of these defaults are private beneficiaries (non-bank).  Of course AB284 will continually affect the numbers until the Banks can find a way to work with this new law.  There was a slight increase in Notices of Sales in December but may begin to drop in the next few months since many of the Notices of Sales are determined by the Notice of Default activity.  The New MLS REO listings have also dropped slightly but our hopes is that the banks will start unleashing the shadow inventory that we believe is still out there. 

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And the winner is…

Posted on January 8, 2012 by Guy Johnson

The results are in! Longtime readers will recall we ran a contest at the beginning of 2011 to guess December’s median sales price and median sold price per square foot (ppsf). The entries were listed in this post, Contest entries for “Guess the Medians”.

In yesterday’s post I reported December’s median sales price of $155,400, and a median sold ppsf of $85.97.

Though the possibility existed for two winners (one for each median), one reader’s guesses were closest to both numbers. Who was this clairvoyant reader of the blog? None other than the Grand Wazoo.

Grand Wazoo must have a crystal ball. He guessed $155,000 for December’s median sales price and $85 for December’s sold ppsf. Uncanny.

Congratulations, Grand Wazoo! If you are reading this post, you have won a $50 gift card to dine at CAMPO. I will contact you off-blog as well to coordinate getting your prize to you.

Shall we run the contest again for this year? Any ideas for something new? Let’s hear your suggestions.

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December median sold price, units, DOM, $/sq.ft.

Posted on January 7, 2012 by Guy Johnson

Wow! 2011 goes out with a nice uptick in the medians. December 2011′s median sold price was $155,400 – the highest monthly median we’ve seen since April last year. Not only was December’s median higher than the seven previous months, but it was also higher than the overall median sales price for all of 2011 — $154,000 (see 2011 by the numbers).

December’s median sold price per square foot also rose nicely. At $85.97/sq.ft. December’s number represented a 1.2 percent increase over November’s $84.99/sq.ft.

Units sold continue to be robust tallying an unprecedented 524 houses sold during December. The Reno-Sparks market has never seen that many houses sold in a December. Not only does December 2011′s number represent a eight percent increase over December 2010′s 485 units sold, but 524 units sold sets a new high for number of sales in any December on record – surpassing even the bubble years. And I thought sales typically slowed this time of year.

Average days on market, 148 days, continues to hover around five months.

The number of Active listings continue to slide. The current 1,403 Active listings represent an 9.2 percent decline from November’s 1,545 Active listings. This decline in inventory is to be expected this time of year, and usually is not noteworthy because house buying activity (i.e. Pending sales) typically slows in concert. However, the number of Pendings, 1,481, exceeds the number of Active listings for the second consecutive month.

With demand exceeding supply, I suppose a rising median sales price should not be surprising. Will the trend continue? If so, for how long? Will we look back at 2011 as the year the market bottomed – hitting $148,250 in October of that year?

December sales by type break out as follows (below). The splits are similar to November’s breakout. At this time REOs still comprise over a third of the market’s monthly sales. The effects of AB 284 are not yet showing up in sales numbers, but remember the bill just went into effect October 1st, and average DOM for properties is nearly five months (see above). So, expect a lag before any effects from the bill are seen in final sales numbers.

  • REO sale: 34% – down slightly from November’s 35%
  • Short sales: 35% – down slightly from November’s 36%
  • Equity sales: 30% – up slightly from November’s 29%

December sales by price band break out as follows:

sales price ($000′s) units sold
0 – 99 104
100 – 199 262
200 – 299 100
300 – 399 29
400 – 499 13
500 – 599 6
600 – 699 3
700 – 799 2
800 – 899 1
900 – 999 1
1M+ 3
total 524

For those readers who prefer the median sold price for houses and condos combined, December’s 606 sold houses, condos and town homes exhibited a combined median sold price of $145,000 – UP 5.4 percent from November’s combined median of $137,600 for 577 combined sales.

Historical data follows:

Month Year # Sold Sold Price Sold Price per Sq Ft Average DOM # of Actives # of Pendings
Dec 2011 524 $155,400 $85.97 148 1,403 1,481
Nov 2011 494 $149,506 $84.99 146 1,545 1,635
Oct 2011 494 $148,250 $84.22 145 1,682 1,646
Sep 2011 572 $149,450 $83.73 133 2,044 1,967
Aug 2011 554 $154,000 $91.34 125 1,947 1,694
July 2011 511 $150,000 $87.59 128 2,028 1,667
June 2011 538 $154,000 $90.12 123 1,990 1,689
May 2011 510 $150,000 $88.66 133 1,968 1,682
Apr 2011 436 $156,125 $89.78 137 1,914 1,593
Mar 2011 511 $160,000 $91.59 132 1,906 1,497
Feb 2011 387 $161,000 $93.35 142 1,882 1,416
Jan 2011 365 $157,000 $92.35 152 1,970 1,329
Dec 2010 485 $165,000 $94.31 143 2,021 1,148
Nov 2010 398 $170,000 $96.43 139 2,060 1,376
Oct 2010 418 $174,950 $98.57 135 2,146 1,371
Sep 2010 467 $168,000 $97.52 132 2,186 1,473
Aug 2010 450 $180,000 $97.54 127 2,222 1,513
Jul 2010 415 $180,000 $101.84 128 2,158 1,580
Jun 2010 602 $170,000 $100.52 145 1,966 1,625
May 2010 450 $175,807 $102.37 138
Apr 2010 510 $179,995 $103.13 128
Mar 2010 477 $175,000 $99.14 141
Feb 2010 338 $170,000 $101.68 138
Jan 2010 346 $167,000 $97.06 134
Dec 2009 424 $178,000 $101.28 126
Nov 2009 461 $175,000 $103.61 112
Oct 2009 561 $180,000 $103.52 123
Sep 2009 520 $185,948 $103.31 128
Aug 2009 482 $179,900 $102.64 116
Jul 2009 515 $180,000 $103.45 126
Jun 2009 536 $180,317 $104.09 136
May 2009 426 $175,000 $102.29 139
Apr 2009 429 $190,000 $105.71 133
Mar 2009 369 $200,000 $105.85 133
Feb 2009 293 $205,000 $111.52 132
Jan 2009 233 $200,000 $113.04 117
Dec 2008 294 $218,950 $121.74 145
Nov 2008 269 $220,000 $122.24 152
Oct 2008 354 $230,000 $131.43 144
Sep 2008 358 $239,250 $136.72 145
Aug 2008 321 $250,000 $142.14 140
Jul 2008 397 $251,000 $145.48 139
Jun 2008 369 $262,500 $148.05 142
May 2008 314 $260,215 $152.30 134
Apr 2008 314 $275,000 $154.05 172
Mar 2008 238 $274,000 $150.93 166
Feb 2008 195 $289,000 $156.48 149
Jan 2008 165 $285,000 $170.23 146
Dec2007 228 $283,950 $167.22 143
Nov2007 204 $299,750 $172.24 126
Oct2007 241 $296,000 $173.55 116
Sep2007 230 $299,945 $179.46 114
Aug2007 311 $305,000 $182.49 118
Jul2007 300 $315,000 $189.78 113
Jun2007 329 $320,000 $196.78 104
May2007 364 $313,200 $190.81 107
Apr2007 320 $309,500 $193.93 121
Mar2007 324 $315,000 $189.61 121
Feb 2007 269 $315,000 $191.18 126
Jan 2007 245 $312,900 $199.79 133
Dec2006 291 $309,000 $193.51 114
Nov2006 281 $318,000 $197.32 111
Oct 2006 363 $312,400 $201.44 105
Sep2006 344 $314,950 $198.08 98
Aug2006 349 $325,000 $210.92 94
Jul2006 373 $335,000 $210.62 93
Jun2006 424 $339,000 $214.54 91
May2006 374 $339,950 $219.05 99
Apr2006 368 $334,600 $212.08 88
Mar2006 387 $340,000 $215.54 99
Feb 2006 283 $335,000 $217.29 101
Jan 2006 274 $365,000 $216.38 98
Dec2005 333 $355,000 $217.31 89
Nov2005 385 $349,000 $220.00 81
Oct2005 484 $359,450 $223.06 77
Sep2005 531 $354,500 $219.26 77
Aug2005 582 $360,500 $220.52 73
Jul2005 608 $353,000 $218.99 71
Jun2005 679 $350,000 $215.69 69
May2005 644 $333,250 $209.95 68
Apr2005 558 $326,750 $207.57 77
Mar2005 584 $325,000 $200.17 81
Feb 2005 342 $318,500 $197.54 88
Jan 2005 341 $310,000 $195.19 85
Dec2004 450 $312,500 $190.72 77
Nov2004 448 $309,950 $191.62 63
Oct2004 512 $299,250 $188.72 53
Sep2004 496 $292,750 $185.78 61
Aug2004 505 $285,000 $182.95 56
Jul2004 544 $304,300 $179.28 61
Jun2004 533 $285,000 $172.16 65
May2004 476 $278,750 $169.64 65
Apr2004 526 $259,950 $158.08 67
Mar2004 508 $245,000 $142.56 71
Feb 2004 365 $237,000 unavailable 81
Jan 2004 380 $228,500 unavailable 78
Dec2003 441 $240,000 unavailable 82
Nov2003 444 $220,750 unavailable 78
Oct2003 430 $219,880 unavailable 76
Sep2003 587 $223,000 unavailable 71
Aug2003 512 $220,000 unavailable 75
Jul2003 533 $210,000 unavailable 77
Jun2003 475 $207,000 unavailable 77
May2003 450 $198,950 unavailable 85
Apr2003 478 $197,750 unavailable 82
Mar 2003 428 $192,000 unavailable 77
Feb 2003 321 $186,895 unavailable 79
Jan 2003 316 $186,000 unavailable 96
Dec 2002 379 $193,500 unavailable 93
Nov 2002 423 $190,000 unavailable 82
Oct 2002 483 $189,900 unavailable 83
Sep 2002 410 $174,000 unavailable 85
Aug 2002 459 $180,000 unavailable 74
Jul 2002 469 $176,000 unavailable 83
Jun 2002 445 $185,000 unavailable 80
May 2002 470 $178,450 unavailable 77
Apr 2002 360 $169,500 unavailable 93
Mar 2002 377 $169,000 unavailable 84
Feb 2002 323 $170,900 unavailable 89
Jan 2002 269 $172,475 unavailable 99
Dec 2001 287 $182,000 unavailable 86
Nov 2001 323 $161,500 unavailable 85
Oct 2001 357 $166,500 unavailable 79
Sep 2001 355 $168,000 unavailable 81
Aug 2001 448 $160,350 unavailable 84
Jul 2001 433 $169,900 unavailable 90
Jun 2001 426 $166,225 unavailable 96
May 2001 404 $162,050 unavailable 97
Apr 2001 370 $158,750 unavailable 94
Mar 2001 385 $159,900 unavailable 97
Feb 2001 297 $159,950 unavailable 104
Jan 2001 264 $165,000 unavailable 102
Dec 2000 272 $156,500 unavailable 100
Nov 2000 355 $154,500 unavailable 93
Oct 2000 348 $153,000 unavailable 98
Sep 2000 356 $160,000 unavailable 104
Aug 2000 412 $163,375 unavailable 94
Jul 2000 368 $155,000 unavailable 110
Jun 2000 466 $165,845 unavailable 104
May 2000 363 $158,000 unavailable 105
Apr 2000 312 $155,000 unavailable 113
Mar 2000 339 $162,700 unavailable 102
Feb 2000 248 $148,000 unavailable 108
Jan 2000 223 $156,000 unavailable 113
Dec 1999 264 $155,000 unavailable 118
Nov 1999 293 $149,900 unavailable 98
Oct 1999 289 $147,895 unavailable 108
Sep 1999 311 $157,000 unavailable 106
Aug 1999 360 $148,500 unavailable 112
Jul 1999 375 $147,800 unavailable 105
Jun 1999 372 $150,000 unavailable 103
May 1999 307 $145,500 unavailable 106
Apr 1999 324 $151,700 unavailable 111
Mar 1999 308 $151,000 unavailable 121
Feb 1999 249 $148,900 unavailable 120
Jan 1999 210 $143,000 unavailable 115
Dec 1998 265 $140,000 unavailable 118
Nov 1998 280 $152,800 unavailable 126
Oct 1998 286 $142,825 unavailable 115
Sep 1998 279 $144,500 unavailable 102
Aug 1998 331 $145,000 unavailable 113
Jul 1998 335 $150,000 unavailable 108
Jun 1998 351 $148,500 unavailable 103
May 1998 302 $145,500 unavailable 99
Apr 1998 235 $149,000 unavailable 111
Mar 1998 267 $142,500 unavailable 114
Feb 1998 201 $139,900 unavailable 126
Jan 1998 167 $149,490 unavailable 129

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 – January 2012. Note: This information is deemed reliable, but not guaranteed.

Posted in Agent Insights, Market Trends | Tagged , | 18 Comments