Sales in October 2008 were up 26% from the year prior. The under $300K range continued to perform, again dipping below the $200K average price point for the second time this year to $193,644. Activity in the $300K-500K category dropped off some, increasing to 14 months’ supply of inventory. The $500K-1 million category faltered significantly with almost 40% lower absorption rates. The $1-2 million range continues to barely move and is now up to six years of inventory. The $2 million plus range had no sales this month. Together these last two price ranges represent 7.5 years of inventory. Pendings dropped again, normal for this time of year, but more than half of them are short sales. Meanwhile, sales of properties under $200K are moving at four times the number sold last year, with an average price of $146,731. Full report.
Data courtesy of NNRMLS, October 2008. Report includes Stick-Built Single Family, Condo/Townhomes, and Real Property Manufactured Housing in Reno-Sparks (Area 100).
GreenNV
Maybe it’s time to start tracking the $100,000 and under market, a category that almost didn’t exist a year ago. There are currently more listings on the MLS $100,000 and under (221) than listings $1,125,000 and over (209), more than 5% of all MLS listings.
BanteringBear
I think that’s a great idea, GreenNV. It’s becoming more and more popular whether people like it, or not. Personally, I think it’s quite attractive. I’ll especially like it when I start seeing stucco sh!tboxes in Spanish Springs popping up from time to time.
KB
BB,
While I can’t fault you on your philosophy, I can say that I am not a fan of you making derogatory comments about peoples homes. As I am sure you know, not everyone can afford to live in your neighborhood. These are still homes that >95% of the people living in them work hard to pay for. They do not need your eyes looking down on them.
BanteringBear
KB-
My apologies if you find the term stucco sh!tbox offensive. It quite fittingly, in my opinion, describes a large portion of the newly assembled architectural abortions gracing the current landscape. It’s not meant to insult you or anyone specifically (except for maybe builders and their architects), but just the quality of product.
Hey, I’ve got an idea. Let’s have a vote to see if more people are offended than not, and prefer I stop using the term “stucco sh!tbox.” If indeed most people would like me to, then I’ll come up with a new term (I don’t think I was the first to use this term). Fair?
Doofus
“Stucco” was originally the registered Trade Name for USG’s proprietary cement plaster building system (building paper, expanded metal lathe, scratch coat, gray coat, color coat). The Trade Name was not active defended, and eventually entered the lexicon as the generic and usually derogatory name for any cement plaster product. Today, the term stucco covers a wide range of cement plaster applications and products ranging from the most primitive (you will see many control joints to prevent cracking, or a lot of cracking if control joints weren’t employed), EIFS systems (exterior insulation finishing system), and proprietary products such as STO with elastimeric additives which reduce or eliminate the need for unsightly control joints.
So perhaps CPSB (cement plaster shit box) would be a more accurate and acceptable description. I personally find the PHSSB’s (pressed hardboard siding shit box) more offensive than CPSB’s. And I personally find the FSAESMERS’s (fake stone adorned ego statements meant to exude permanence and status) the most offensive of all.
Reno Ignoramus
Long time readers of this blog will recall that commenters like Bantering Bear, Lindie, Mike Z, and myself have been saying for well more than two years that prices in Reno will, inevitably, return to traditional income to price ratios and traditional rent:own ratios. What we said was that it was only a matter of time before we would see houses selling in the 3x to 3.5x median household income range. Two years ago we got called hostile pessimists and doom and gloomers. Now we are talking about houses in the $100K-$200K range as a significant segment of the market. Do you all remember what the Reno-Sparks market really is without Voodoo money sloshing all over the place?
Grand Wazoo
Diane – what’s the latest on the move. Still heading to the Bay area?
MikeZ
re: Doof
FSAESMERS’s (fake stone adorned ego statements meant to exude permanence and status) the most offensive of all.
Something’s wrong with that acronym, Doof.
re: RenoIgno
Long time readers of this blog will recall that commenters like Bantering Bear, Lindie, Mike Z, and myself have been saying for well more than two years that prices in Reno will, inevitably, return to traditional income to price ratios and traditional rent:own ratios.
Yup. It seems so obvious *now*, doesn’t it?
But back then, a lot of smart people convinced themselves that:
1) they’d better get in the market while they could still afford it
2) the more house you finance, the more money you make when you sell
3) the less you put down, the better your cash flow and ROI – and for “investors,” the more houses you can buy!
4) prices *have* to keep going up because God isn’t making anymore land and people have to live *somewhere*
I welcome the return to sanity and a healthy, affordable, sustainable real estate market but it’s still a tragedy that so many good people are being hurt so badly.
?
RI, I just have to ask the question. Were you Lindie?
Marla
I think we will indeed see the median price drop below $200K. The notion of one half of all sales being at or under $200K seems hardly remarkable now.
I recall some discussion a few months ago about what the median household income is in Reno. Did anybody ever come up with recent reliable info about that? It seems to me that even at $200K, such a median would still be higher than 3x median household income for Reno-Sparks.
Royal Flush
My arms tired from patting myself on the back.
Lynne B
Well, houses still occasionally sell in Reno, I guess that’s the good news..in Fairfield CA houses that sold new in 05 for 600K are now listed for 280k and they can’t even get anyone to look at them for that price, that’s pretty sad…