RSAR Monthly Market Report – June 2013

Below please find the Reno-Sparks’ Market Report for June 2013 provided by the Reno/Sparks Association of REALTORS^®. The report is quite detailed and breaks out many of the housing market metrics by type of sale (i.e. REO, short sale, no special conditions) as well as by MLS area. Also you can find charts of historical data, such as the median sale prices going back eight years, or the price-per-square-foot for the past five years.

Check out all the numbers by clicking on the report below.

Commentary from June’s report:

• Since March 2012, units sold have been averaging 498 per month, excluding the typical January decline in sales.
• Sales in the category of no special conditions represented 69% of the sales in June 2013 compared to 32% of the market in June 2012. Equity sellers entering the market and investors who purchased at or near the bottom of the market continue to be the primary source of inventory.
• Median price has been trending up for the past sixteen months and is up 22% year to date January 2013 over June 2013. Even with the increasing median prices, the median is currently at end of 2003 and beginning of 2004 level and is off 39% from the peak of the market in 2006.
• In June 2013, there were 128 active listings under the $200,000 price range compared to 151 active listings in June 2012, a decline of 15%.
• After a historic inventory low in December 2012 at 305, new listing inventory has been trending up for the past six months and is up 7% over June 2012.
• For the fifth consecutive month, the sold to asking price ratio exceeded 100%. June sold to asking price ratio was at 100.6% down slightly from May at 101.2%.
• New listings in the category of no special conditions were up 73% over June 2012; in the category of Short sales, listings were down 45% from June 2012, and in the category of bank owned, listings were down 66% from June 2012.
• Since the early 1980’s, when interest rates peaked at 18.16%, there has not been an increase in interest rates by more than two 2 percentage points in a one year period. Comparatively, interest rates have been increasing for the past five months, but the increases have been modest. According to Freddie Mac, interest rates on a 30-year fixed mortgage have risen from 3.41% in January 2013 to 4.125% in June 2013. For every $100,000 in dollars borrowed, a ó% increase in interest rates will up the borrowers’ mortgage payment approximately $30 per month. This is roughly the equivalent of eight lattes over a one month period. Now may be the time to give up lattes and look at homeownership.
• For those homeowners, who still remain underwater in their property with little hope of a loan modification, now may be the time to consider a short sale. The extension of the Mortgage Debt Relief Act is scheduled to expire December 31, 2013. If Congress does not extend the Act a second time, homeowners who sell their property for less than the amount owed will incur a tax on the forgiven portion of the debt. Short sales in Reno are taking approximately 6 1/2 months from list date to close of escrow. Contact a REALTOR to begin the discussion about your options and marketing the property for sale if you are eligible for a short sale. This will help ensure a close of escrow before year end and the expiration of the Mortgage Debt Relief Act.

related post: RSAR Monthly Market Report – May 2013