Below please find October’s Market Condition Report for the Northern Nevada area provided by our friends at First Centennial Title Company of Nevada. (Click on the report to enlarge.)
From October’s report…
OVERVIEW: Supply is weakening while demand is holding in the current range. Significant one month price decline for SFR; Condo holding on the price line.
WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): The absorption rate has declined 2 weeks since last report due to decline in supply. Tightening absorption rates signal a tighter market. However, current changes in the absorption rate are small and will only be significant as part of a trend. Stable absorption rates signal no big changes are in the offing. The usual seasonal changes are just ahead.
RATIO OF SUPPLY TO DEMAND: Measures the number of units of supply available each unit of demand. Observe those areas on the Market Condition Report formatted in RED. See that Minden displays the highest value. This should be interpreted as a rejection by buyers of the area at the current price offered relative to other areas. In other words, there are not enough buyers at the current price schedule to clear current inventory. From a listing agent perspective, more rigorous price management is required in these areas relative to other areas.
Market Condition Report Tip: The overall ratio of supply in the Reno area is 6.1. This means there are 6.1 units of supply to each unit of demand. In Las Vegas, the same ratio is 3.4. This implies the Las Vegas market is much tighter. However, even though the Las Vegas is the tighter market, both markets are displaying continuing price weakness.
