RSAR Monthly Market Report – June 2014

The Reno/Sparks Association of REALTORS^® has released its real estate market report for June 2014. The report can be accessed by clicking on the chart below.

Commentary from June’s report:

• June 2014 sales at 548 are the third highest June in history exceeded only by June 2010 (604) and June 2005 (679). June 2010 was the 1st deadline to take advantage of the First time Homebuyers Tax Credit and June 2005 was performing based on lenient lending practices. It’s a good sign that today’s market is performing well without artificial influences.
• The acceleration in median price has slowed in comparison to the rapid increase that occurred in 2012 and early 2013. Even with the acceleration in price, the market is still 31.5% off the peak from January 2006. The slowing in the acceleration of median price is a positive and more normal trend.
• New listings are down 8% from the prior month and down 6% from June 2013 but are following the typical seasonal trend.
• June pending sales were down 8% with 382 compared to 416 in May 2014. Pendingsare a leading indicator of future closed transactions.
• Buyer demand and low inventory keep the Reno and Fernley areas in a Seller’s market. Reno has 3.7 Month’s Supply of Inventory.
• With the lack of inventory at the entry-level, those sellers with equity and who are willing to price their home competitively this is an excellent time to sell.
• According to a July 6th article in The New York Times “… Reno appears poised to turn the corner, according to economist who study the region. Housing prices are slowly starting to rise. The unemployment rate has declined to 7.1%. New technology companies are arriving, and older ones are expanding, including Zulily, an e-commerce company for women and children’s clothing and home décor, which announced plans in May to double its warehouse and hire 600 people.” As quoted from The Times “There are solid reasons to be optimistic about Reno,” said Greg Bird, an economist at Moody’s Analytics. “We’re starting to really see the data turn for them.”
• “There is a lot of positive things happening and slated to take place in the Truckee Meadows/Fernley area,” commented Reno/Sparks Association President, Mark Ashworth. “We look forward to a continued healthy recovery.”

related post: RSAR Monthly Market Report – May 2014