Sales in August 2008 were down 7% from the year prior. The under $300K range lost some ground as inventory crept up to 10 months’ supply, and the $300K-500K range also crept upward to 12 months’ supply. The $500K-1 million category crawled along as always, this time with a noticeable drop in average price, accompanied by longer days on the market. The $1-2 million range continues to sell at a snail’s pace, though better this time with a whopping five-sale month, yet inventory remains high at 48 months. The $2 million plus range saw no activity again this month. Pendings rose again, most notably in the under $300K range, as did short sale pendings. Meanwhile, sales of properties under $200K more than doubled compared to the number sold last year. Full report.
Data courtesy of NNRMLS, August 2008. Report includes Stick-Built Single Family, Condo/Townhomes, and Real Property Manufactured Housing in Reno-Sparks (Area 100).
billddrummer
Diane,
Thanks for the statistics. One of the many things I like about your blog is the amount of empirical data available here. I applaud you for providing such a terrific resource for those of us who aren’t in the real estate business, but are interested in local trends.
Now if we could only get those pesky $2 million+ homes to sell????
BanteringBear
I just took a gander at the mls for the first time in quite a while. Sellers and their realtors are still, for the most part, dreaming. Many of the fantasy prices reflect not the current market, but that of 2005. I still see many properties listed far and above what even the greatest fool would have paid at the pinnacle of the bubble. Many, many of the homes listed boast of “renovations” and “remodeling”. These are flips gone bad, they’re largely vacant, and they’re future foreclosures. Bring on the dark winter.
billddrummer
To BB,
I like the imagery of a ‘dark winter.’ Look for properties with water damage from burst pipes because the lender of record forgot to pay the electric bill.
Reno Ignoramus
Very little new here from the past several months. 92% of sales and pendings are under $500K. Almost 75% are under $300K. The over $1 million segment is about 1.3% of sales. What kind of mind numbing delusional denial must it take to hold out in the over $1 million segment. 4 YEARS of inventory and not a prayer that this segment will come back to life. As I have said before, there are just are not enough cardiologists in Reno to keep this segment on life support.
The most interesting aspect of this report is that sales under $200K now comprise 35% of the market. Remember when sales under $200K were nonexistant? I remember the day in the summer of 2004 when one of the most prominent realtors in Reno told me, with absolute certainty, that never again would Reno see houses for sale under $300K. She said a buyer would have to go to Fernley to buy under $300K. Because Reno is special and everybody wants to live here.
How long before Diane starts to report on the number of sales under $150K?
Casa de Dolar
Sales under 200k are double that of last year? This just blows me away; these people will all be 75k under water in 18 months. Don’t these folks read or do any research before buying a home? Do they know about Lehman Brothers and Washington Mutual?
Reno Igno is right-on, 150k sales reports are coming back. It will be the same on the way down as it was on the way up. Remember when everyone said, “It can’t get any higher,” now you will be hearing, “It can’t go any lower,” but it will.
Casa
Casa
BanteringBear
People’s memories are short. Back in 2001, you could purchase a very respectable 3/2/2 starter home in a decent Reno neighborhood for under $150k. Since that time, wages have been FLAT to DECLINING. We’ll see those $150k homes again. In fact they’re the ones selling for about $200k-$220k right now.
billddrummer
To BB,
I think you’re 100% right. I bought my home in 1998 for $96,000, and it seemed like a good deal. Brand new, nice neighborhood, lots of young families just starting out, and we could make the mortgage payment. It was an FHA special, because nearly everyone on my block got one.
That same house appraised for $270,000 in March 2006. Which was idiotic.
Now, homes in the neighborhood are going for $190,000-$200,000. My old house sold out of foreclosure for $191,500. But I still think that’s too high for a 20 year old house with the original appliances.
I think you’re right on target with a $150,000 number for 3/2/2 starter homes.