FCT’s Market Condition Report – December 2010

Our friends at First Centennial Title Company of Nevada have released their Market Condition Report for December.

From the report:

• OVERVIEW: The market is generally holding in the current range with little change from the previous month. The single significant difference is the persistent weakness displayed by prices. Expect no substantial changes in the first quarter of 2011. Prices and demand will be more likely to decline or remain stable than rise.
• SUPPLY (ON MARKET): Both SFR and Condo declined from last month. This is usual due to the time of the year.
• DEMAND (SOLD PER MONTH): Little changed from last month. This is not unusual or unexpected. Declines at this time of the year are naturally associated with the holiday/seasonal cycle.
• FAILURES (EXPIRE-WITHDRAW): Marginal increase from last month.
• IN ESCROW (FUTURE CLOSINGS): Both types stable in the current range.
• PERCENT SELLING: Very little meaningful movement signaling a calm market.
• WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): Absorption Rate in retreat signaling a slight tightening of demand/supply. These changes are not significant and do not appear to be a part of trend.
• MARKET SPEED INDEX: The pace of the market, which had been rising consistently, has peaked and is holding steady. Fernley SFR (32) is the quickest in a generally slow market, while Yerington brings up the rear at 16. Market Speed speaks to buyer preference. Higher relative Market Speeds imply that buyers prefer one area’s inventory over another (all other things being equal). The reader should regard the Reno area as a relatively “slow” market when compared to other regional markets.
• PRICES: Both SFR and Condo price schedules continue to weaken. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph). Lately, however, there is more of a tendency to decline than rise.

Click on the report below to enlarge…