Sales in June 2008 were actually up 2% from the year prior. Activity in the under $300K range improved again as it worked its way down to nine months of inventory. The $300K-500K range gained some ground, declining to 11 months of inventory from 15. The $500K-1 million category crept along much like last month and still favors the buyer with well over two years of inventory. The $1-2 million range choked with only three sales and an increase in inventory to 78 months, while the $2 million plus range had a burst of activity with three closings. Full report.
Data courtesy of NNRMLS, June 2008. Report includes Stick-Built Single Family, Condo/Townhomes, and Real Property Manufactured Housing in Reno-Sparks (Area 100).
Future Buyer
I think the majority of 1-2 million dollar buyers are still waiting for prices to drop and become more realistic in today’s market–they don’t want to lose 200k+ in the first year of owning their new home. It’s a battle of who is going to shoulder the depreciation–sellers or buyers. Sales probably won’t change until prices drop. There is some great deals under 500k so it is not a surprise that sales are creeping up.
Marla
78 months of inventory? 78 MONTHS?
As in 6.5 YEARS?
At what point do we just acknowledge that there really is no market over 1 million dollars in Reno? Certainly no market showing even nominal signs of life.
There are just a few hundred deluded “sellers” ( I use the term very loosely) taking up space on the MLS in this price range, but no real market.
I am curious. What kind of denial does it take to continue to cling to a listing in a price category that has 6.5 YEARS of inventory and that comprises about 0.8% of all sales?
Perhaps Allen can address this?
Jimmer
Marla:
1. “My house is special”.
2. “I really don’t have to sell”.
3. “I’ll be damned if I’m going to give it away”.
4. “I have to get $_______ out of the sale.”
5. “I am entitled to get $______ out of the sale.”
I am sure there are many more rationalizations and delusions but these ones seem to be the most typical.
johnny cat
Hey Jimmer, maybe you should continue to rent out your old, outdated, garbage apartment instead of buying!
johnny cat
bantering bear.. so when is the median going to slip below 200k?
AHAHAHA NEVER!
BanteringBear
It appears as if the stucco oracle has a new moniker, and it’s “cat litter” of all things! I’m sure Diane could verify this through his IP address, but it’s not necessary. His childish utterances are pathetically transparent.
DERRICK
almost as pathetic as your sub 200k median price prediction!
LOL
DonC
Marla — In studying the behavior of home owners in down markets, Shiller concluded the sellers were delusional. That was a professional judgement, not a characterization like what we might say here.
Basically they won’t sell at the lower price if they can avoid it. So what you see offered on the market at market rates are forced sales — foreclosures, deaths, job moves, etc.
This is not necessarily crazy if sellers think that housing prices will (soon) bounce back and they don’t have to sell. In this regard, the comparison usually goes along the lines that every share of Cisco stock is for sale very day, but very few houses are.
Basically Reno sellers are not unique.
DERRICK
Great post DonC. So it must be frustrating being a buyer in todays market with all the delusional sellers!
Buyers… Doesn’t that just make your blood boil? Heh heh oh well, there’s always rentals for the next 10 years!
Personally I could care less about the market at this point. I realize I may be different than most homeowners in that I own my house free and clear.. that being said, I pay less to live in my home (property taxes,utilities,maint,insurance,hoa fees) than I would to rent anything remotely similar in size or location. Also considering I have no plans to sell my house now or in the next 5 years!
In the event that something were to change drastically in my life, forcing me to move or relocate. I would simply make sure my house was properly taken care of and possibly rent or buy another place.. especially since all these bank owned forclosures represent such a great deal for the long term. ..
Then again I’m not like most people I suppose.
MikeZ
Also considering I have no plans to sell my house now or in the next 5 years!
That’s not your house in 89436, listed with Prudential Nevada for $319K?
There’s more than 1 Derrick [last name removed] in Sparks?
BanteringBear
Exactly, MikeZ. Almost unbelievable isn’t it, the lack of intelligence? Stay in school, kids.
BanteringBear
Diane-
How come you didn’t include the median sold price in your report? Did I overlook it?
SmartMoney
3225 Palacio Ct is Derrick’s house and it is for sale, but he says it is not? Confusing.
BanteringBear
It’s actually not so confusing SmartMoney. Derrick’s what we commonly refer to as a “wannabe”. He’s full of, well, stinky bovine excrement. Nuff said.
BanteringBear
At least Allen Murray doesn’t deny his house is for sale. Kudos to Allen for at least owning up to that.
cash buyer
hi reno folks, please give me a lesson on nevada. here on the east coast we price property in line with competition. there are at least 3 properties on palacio ct in sparks, but the pricing makes no sense. 3215 palacio looks like the best “price per pound” based on the competion and 3234 palacio seems overpriced. how will 3234 palacio sell if so over priced relative to the others? appreciate your input to help us understand your market better. thanks.
smarten
What I find more telling than anything, is why Mr. DERRICK DIDN’T list his home for sale with Diane or Guy? After all of his past garbage about “if I ever were going to use an agent, it would be you Diane,” I find this relevation to be absolutely amazing!
Sully
cash buyer – see DonC’s post above.
DonC – did the article mention how long it takes for sellers to see the light? I’m running a race to see if I can get into my home before I need a rest home. 🙂
john
The “5 stages of Grief” for sellers in the Reno 1 mil. and up market
1. Denial – My home is worth way more than others’. It’s MY home. I can easily get 10-15% appreciation for my family’s memories experienced here and hard work on renovations over 2006 comparable sales.
2. Anger – Why isn’t this idiot real estate broker doing their job! I mean, 20 people come in and no bids. Stupid broker, what good are they anyway with their 6% commissions. If they don’t get my price, I’m switching my listing to another firm.
3. Bargaining – You can tell that low ball bidder I have no response. If they come higher, I will respond. Not before. Earn your money. Did you tell them how wonderful my home is? What? They aren’t budging? Ok, lets lower the price a bit then before accepting such a low offer.
4. Depression – What do we need to do to get this property to sell? More price reductions? But you originally said the place will sell for my price! Were you lying to me just to get this listing (hint hint)? Let me think it over at the bar tonight with my friend Jack Daniels. He always has the answers.
5. Acceptance – Lower the price to where the market is right now and let’s sell this thing. I’m willing to go down to X to move this property. Just get me a bid, any bid, and I’ll consider it!
derrick
3225 palacio ct? I hate to burst all your bubbles, but first off thats not even my House! I would be the first to admit if I had my house or any of my properties listed on the market. So you guys really need to take some medication lmfao
BanteringBear
Sure, derrick. It was your house before, but now it’s not. Huh? I mean, what?? Look up pathological. And, speaking of medication, it sounds like someone’s been skipping it…
smarten
As a follow up to John’s post, and if you really want to get a chuckle, take a look at the garbage that spews from Chase Agent Michelle Plevel:
“Don’t Accept a Low Ball Price, Get Rid of Your Low Ball Agent” [ http://www.chasenation.com/profiles/blog/show?id=2000642%3ABlogPost%3A1941 ] – That’s right. You’re not a delusional multi-million dollar seller. The problem’s your bonehead agent [and this is coming from a fellow agent]!
And this one I really like – “Stop Making Bogus Offers – China has $$$” [ http://www.chasenation.com/profiles/blog/show?id=2000642:BlogPost:7002&page=1#comment-2000642:Comment:7024 ] – According to good old Michelle, “there is a serious problem out there in the market and that is absurd offers being presented by even seasoned agents on properties and it really needs to stop.” Michelle’s busy fielding internet offers from anonymous Shanghai investors who are happy to offer MORE than listing price for Montreux properties sight unseen!
What a nation!
GreenNV
3225 Palacio:
Purchased 10/23/03 for $269,500 by Linda M. Heegard. She subsequently purchased 8081 Tres Arroyos 6/26/07 for $688,000 with co-owner Joel E. George. Research is easy, guys. Do your homework before pointing fingers. Just because a listing has Brazilian cherry floors, pavers, and a pretentious Beamer parked in the driveway doesn’t make it Derrick’s abode.
BanteringBear
Thanks for the update, GreenNV. That’s the same house which was posted, on this blog, as Derrick’s last year. He never denied it, so I took it as true.
Derrick-
I’d apologize, but that’d be too gentlemanly on account of all of your rude behavior. So, I’m not going to.
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