Sales in February 2008 were off 37% from 2007. In the under $300,000 price range, a 3-month reduction in months supply of inventory, along with an increase in average price, were the bright spots in our market, indicating that perhaps buyers are finally starting to return at the entry level. These results were in sharp contrast to the over $1 million segment, where we had no sales at all. That’s right… zip, zero, nada. Currently we have an 18-month supply of homes, better than the 20 we ended with last month. Pendings are up 17%. Meanwhile, the median sales price decreased slightly to $265,000. Full report.
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Reno Ignoramus
Diane, you report 220 houses sold in February. Guy reports 125 sold. Can you again describe what accounts for this fairly substantial difference?
Thanks.
BanteringBear
With 256 properties available in the over $1m range, and zero sales for the month of February, I think it’s quite clear that Reno is NOT a $1m dollar market. Sure, the occasional home will sell in that range, but with 256 available, most of these homes will NEVER sell. Good luck with that.
Sully
I think the Reno MLS recently hired a former Enron accountant.
SkrapGuy
Sully, I think we all know that there is a substantial amount of Enron accounting in MLS statistics. We all know the “percent of asking price” figure is bogus, and we all know that the DOM figure is bogus, although that one appears to be getting a bit more accurate. And now we seem to have quite a discrepancy between Diane and Guy’s monthly sales figure, which figure seems to mean so much to so many who post here.
BB, you are of course quite right that Reno is not a million dollar market. The median annual household income in Reno-Sparks is around $60,000. If one buys a $1 million house and puts 20% down and finances the $800,000 balance, the P&I alone is over $5,000 a month at 6.5%. In other words, just the P&I on such a loan is equal to the entire median household income for the year.
The simple fact is that there are just not enough high income households in Reno to support a $1 million market. Sure, an occasional sale in that price range, but no way a market of some 256 properties. There never were the urban legend Rich Californians coming here to buy up all our “cheap” million dollar houses. And there just are not enough cardiologists here to keep this dying on the vine market segment alive.
Now that the no doc, nothing down, interest only, liar loans are gone, and all the wannabes willing to commit a felony are unable to lie their way into a million dollar property, we see what is left. Which, last month, was nobody.
Darrin
I think the bulk of the million dollar plus market has been sustained by California transplants. With sales lagging and prices falling over most of California, it seems like these homes have the most to loose.
Diane Cohn
RI: I include single family homes, condos/townhomes, and manufactured homes classified as real property in my reports. I believe Guy tracks only the single family and condo/townhome categories. So all the mobiles on a parcel with 8-point foundations figure into my numbers, increasing units sold and decreasing median sales price. I have always included them because they are real property, but I think many reports that turn up around town ignore this category and focus entirely on stick-built housing.
PS: I’ll be offline the rest of the week due to a death in the family.
BanteringBear
I’m sorry to hear that Diane. I wish you and your family strength during this tough time.
DERRICK
for someone paying 2,650 in rent and yet you don’t even understand what zero sum means? Smarten you really are a crash course in stupidity.
Ps
Sorry to hear that diane, If there is anything I can do let me know
BanteringBear
DERRICK posted:
“…for someone paying 2,650 in rent and yet you don’t even understand what zero sum means? Smarten you really are a crash course in stupidity.”
Unbelievable. Talk about the pot calling the kettle black. I’ve read hundreds of thousands of blog entries, and never have I come across any as deficient as yours, DERRICK. Should you actually have the financial means of which you boast, you’d be well served to invest in a college education, for it’s exceedingly apparent that you’re truly one of the have not’s.
DERRICK
Ime a twenny-sevin yeer old meelyunair! Alls yuo haterz are juts jellus of mee. I didint get two be all this rich becuaze of my literrucy yous knowe it’z becauze of my shrood investingly abbillity.
SkrapGuy
If I read Diane’s post correctly, and combine it with Guy’s, I think it means last month 125 houses sold and 95 mobile homes attached to land sold. That is pretty interesting. 43% of all sales last month were mobile homes. Who would have thought. I would imagine that mobile homes, even attached to land, would geerally sell for less than stickbuilt houses. Yet, Guy’s median sales price, not including mobiles, was $275K, while Diane’s, which does include mobiles, was $265K. Not much of a difference.
Diane Cohn
deerick, death is deepressing, life is short… i want to be a meelyunair too. what iz your seecret??? tell me now beecause you luv thees blog 😉
Samuel
I look at things purely simple. When prices
decline and money is available the sale of
homes go up. If prices sustain…..sales
will not go up in this tight money environment.
People will give those high Reno/Sparks prices.
NOR can they!
Reno home prices need to fall much to sell since
Reno is not an exclusive area with multimillion
dollar homes in the hills surrounding us.
The sad story is that home owners are paying
property taxes at about 2004 home values and
so they think that their properties are still
worth what they were in the early 2000’s when
home prices were zooming along. So, owners
are holding out for a return of the housing
market by not selling or renting hoping the
those great boom days return soon.
My belief is that those days were a rarity and
will not return in our life time and it takes
historically, a messed up housing market years
to return to normalcy. So, if you have to sell
take the losses which is much much much!!!!!!
Lick your wounds and get on with life. If you
are holding out for some return anytime soon
dont hold your breath. Not many home owners
have any equtiy left anyway since the equity
went on paying off credit cards and buying
SUV’s during those 4 % hay days refinancing
and using homes like an ATM card. People are
tapped out………..
Debra Dalton
I am looking for a relator to meet with me on a short trip to Reno, I am assisting my mother in-law to relocate, she has a MH. Could yourecommend a relator to meet with us on our visit there
May 12-20, we need someone that can take charge and keep in touch with us long distance.
websurfer
The govt bailout of various banks because of all
the bad home loans is a huge mistake. Govt
should not be involved in the banking business
even Fannie and Freddie bailout leaving the
tax payers with the bill for corrupt loans or
people who got into homes that were way over
budget. This is not good at all with an ever
growing debt. Expansion of big Govt.. We
are turning into a european style socialism.