The Reno Sparks Association of REALTORS has released its Monthly Market Reports for August. You may access these reports here:
From the Reno, Nevada Standard Market Report…
Summary:
– “Washoe County sales are the highest they have been for an August since August 2005,” said Sherrie Cartinella, 2011 president of the Reno/Sparks Association of REALTORS and a REALTOR with Coldwell Banker Select Real Estate. “This paired with the fact that median sales prices are up and continue to settle indicates we just may be at the bottom. Market conditions, of course, will continue to be influenced by high unemployment . Although there are media reports of a ‘double dip’ recession, the current median sales price and historic low interest rates make this a good time to buy, especially for those that have been on the fence!”
Median Sales Price
– August 2011 median price was up 2.7% to $154,000 compared to $150,000 in August 2011.
– Median price is defined as the mid-point, where, for the time period identified, the price for one-half of the sales are higher and one-half are lower.
Price per Square Foot Solds
– Price per square foot is at $94.14.
– Price per square foot by area groups, as provided in the Detailed Report, is a good way to compare similar homes for current value.
Number of Units Sold
– August ended the month with 528 sold transactions, up 4.3% from the prior month.
– Sales are up 17.3% from the same period last year. August 2010 continued to be influenced by the First Time Home Buyer tax credit.
Average Days on Market
– The average days on market are 127 days, down 0.7% from July 2011.
Day on Market (DOM) by Special Conditions
– Short sales continue to influence the average days on market at 198 DOM.
– Properties with no special conditions, REO, and Other show a range of between 89 and 100 DOM.
New Listings
– 727 new listings were taken in August compared to 699 in August, a 4% increase.
Distressed New Listings by Special Conditions
– 66% of new August listings were distressed – 263 Short Sales, 218 REO, No special conditions 236 and other 10.
– NNRMLS implemented a recent change in the reporting of Fannie Mae, Freddie Mac and HUD re-possessed listings as Real Estate Owned (REO), August new listings by special conditions reflect a more accurate picture.
– REO listings represented 30% of the market; Short Sales 36%; No special conditions 32.5%, and Other 1%. The market remains dominated by distressed new listings representing 66% of the market.
Status of Pending
– Active Pending – Short Sales represent 57.7% of the total active pendings; Active Pending Loan equals 19.3%; Pending Noshow represents 18.2%; Active Pending call 4.5%; and Active Pending House less than 1%.
Current Months Supply of Inventory (Unsold Inventory ÷ Sales per Month)
– As of August 31, there was 6.4 months of unsold inventory based on the August sales rate.
Historical Months Supply of Inventory
– Historical Months Supply of Inventory show that August MSI is down to 6.4 months compared to August 2011 at 6.6 and down 24% from August 2010.
– Six of the past twelve months, the market has been what is defined as balanced. In the past 24 months, the market has remained as primarily a buyer’s market.
– The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.
– Unsold inventory includes Active Pendings. This method of reporting months supply of inventory follows the industry standard of including all pending sales remaining in active status in the active inventory.
Conclusion
– August unit sales are the second highest unit sales for an August in the history of tracking the information though the MLS.
This number outpaces August 2010 sales which continued to be influenced by the tax credit. August 2011 sales numbers are only outperformed by August 2005 (595).
– August 2005 showed the early sign of the collapse of the boom when median sales price began its decline. Unit sales began to improve in 2007. It wasn’t until May 2008 the rapid decline in pricing began to show into what we are currently seeing in the market.
– Year-to-date 2011 unit sales (3774) numbers are up 5% over 2010 unit sales (3592). We are cautiously optimistic that the sales number will continue to perform on its own (without government incentives) and outpace 2010.
– August’s median price of $154,000 was up 2.7% over July. There was some artificial stabilizing in the median price during the tax credit influenced period. After the final deadline of September 2010, we have seen a continued decline in the median price. Savvy buyers with stable jobs and investors are seeing this as an excellent time to buy. It’s time to get off the fence.
– For the past 40 years, interest rates have never been at the current record lows and are predicted to remain low into 2013.
– The average 15-year fixed rate loan dropped to 3.3%. This is the lowest level since 1991, when mortgage giant Freddie Mac began tracking it. Freddie Mac also reported that the 30-year fixed rate loan dropped to 4.09%, a new low for 2011.
– Mortgage specialists say to get the best rates consumers must have a minimum FICO credit score of 720 or 740 out of a possible 850. A tough challenge for even the most qualified buyers.
– The Detailed Report is made available to members as a member benefit. Examine the Detailed Report for a more in-depth look into market segments and price points. Both this report and the Detailed Report are provided as a value added service to members.
Reproduced by permission from the Reno/Sparks Association of REALTORS®
