RSAR Monthly Market Reports – May 2011

The Reno/Sparks Association of REALTORS^® has published the Market Reports for May 2011. 

These .pdf reports may be accessed here:

• Reno/Sparks Standard Report May 2011
• Reno/Sparks Detailed Report May 2011
• Fernley Standard Market Report May 2011

From the Reno/Sparks Market Report…

Median Sales Price

• May 2011 median price was down 3.6% to $147,900 compared to $155,250 in April 2011.
• The median sales price continues to settle from the prior months.
• For the past nine consecutive months median price has been lower than the prior year-over-year median.

Price per Square Foot Solds

• Price per square foot is at $90.34.
• Price per square foot by area groups, as provided in the Detailed Report, is a good way to compare similar homes within a specific area.

Number of Units Sold

• This May’s unit sales of 496 single family homes is the second highest May in the history of sales reported through the MLS.  Statistical records date back to 1989.
• May ended the month with 496 sold transactions, up 15.1% from the prior month.
• Sales were up 10.2% from the same period last year, which continued to be influenced by the First Time Home Buyer tax credit.
• This month’s sales were only exceeded by May 2005 (644 units sold), which occurred during the real estate boom.

Average Days on Market

• The average days on market are 134 days, down 3.1% from April 2011.

Day on Market (DOM) by Special Conditions (New Report)

• Short sales continue to influence the average days on market with over 190 DOM.
• Properties with no special conditions, REO, or Other show a range of between 90 and 120 DOM.

New Listings

• 787 new listings were taken in May compared to 785 in April, a less than 1% increase.

Distressed New Listings by Special Conditions (New Report)

• The percentage of “Distressed” new listings was down 3% from the prior month.
• 60% of new May listings were distressed – 243 Short Sales, 217 Bank Owned/Other.
• The number of new listings with no special conditions has increased for the past five months, while the number of short sale listings has declined. After a recent peak in December 2010, REO new listings have remained stable.

Status of Pending

• Active Pending – Short Sales represent 58% of the total active pendings

Absorption Months Supply of Inventory (Unsold Inventory ÷ Sales per Month)

• As of May 31, there was 6.8 months of unsold inventory based on the May sales rate.

Historical Months Supply of Inventory

• Historical Months Supply of Inventory show that May MSI is down 1.2 months from April and May 2010.
• In the past twelve months, there have been five months which have fallen into what is defined as a balanced market. In the past 24 months, the market has remained as primarily a buyer’s market.

Conclusion

• May 2011 median home price of $149,700 is the lowest the Reno area has seen since 2000.
• May 2011 closed sales numbers set a near record as being the second best May for single family sales number in history.
• Year-to-date 2011 unit sales numbers continue to out-perform 2010 unit sales by 2%.
• In May, the “Bank-owned” sales category held the dominant share of the market with 40% of the closings.
• The affordability door is open to a wider range of buyers. This means that a two-income, household earning approximately $10 per hour each, can now afford the median priced home in the Reno/Sparks area.
• Mortgage rates are at historic lows. Rates are predicted to move up before year end. For those with stable jobs and who expect to stay in their home long-term, it’s an excellent time to buy.
• The number one market requirement for Nevada is jobs!
• For buyers, it’s buyer confidence and credit worthiness to qualify for financing under stricter underwriting guidelines.