Regular readers of this blog are well aware of the increase seen with the median sales price in 2012. From January 2012 to December 2012 the median sales price for homes in the Reno-Sparks market soared nearly 40 percent. But with 2012 sales prices ranging from a low of $18,100 to a high of $4,500,000, the median, by itself, shows only a part of the picture.
In order to get a better idea of how home sale prices shifted in the Reno-Sparks market, I created a frequency distribution chart at various price bands. I then broke out the sales from 2012 into quarters in order to see where the shifts in prices occurred. (see Table below). Additionally, I have shown the sales prices at the 25th-, 50th- (median) and 75th-percentiles for each quarter.
| Q1 cumulative % | Q2 | Q3 | Q4 | |
| ≥ $1,000,000 | 0.28% | 0.51% | 0.07% | 0.86% |
| ≥ $900,000 | 0.69% | 0.70% | 0.33% | 0.99% |
| ≥ $800,000 | 0.89% | 0.90% | 0.59% | 1.52% |
| ≥ $700,000 | 1.10% | 1.34% | 1.05% | 1.79% |
| ≥ $600,000 | 1.72% | 1.85% | 1.71% | 2.78% |
| ≥ $500,000 | 3.03% | 3.71% | 3.23% | 5.56% |
| ≥ $450,000 | 4.06% | 5.12% | 4.41% | 6.69% |
| ≥ $400,000 | 4.95% | 6.78% | 6.32% | 9.07% |
| ≥ $350,000 | 6.95% | 9.65% | 10.27% | 12.19% |
| ≥ $300,000 | 9.63% | 13.75% | 16.85% | 17.28% |
| ≥ $250,000 | 15.41% | 21.23% | 24.88% | 27.02% |
| ≥ $200,000 | 27.24% | 35.10% | 38.84% | 42.98% |
| ≥ $150,000 | 47.73% | 57.67% | 62.28% | 67.35% |
| ≥ $100,000 | 77.51% | 83.70% | 89.01% | 90.60% |
| Q1 | Q2 | Q3 | Q4 | |
| # of sales | 1,454 | 1,564 | 1,519 | 1,525 |
| 25th percentile | $103,900 | $116,000 | $125,000 | $131,500 |
| median sales price | $145,000 | $163,950 | $174,000 | $183,000 |
| 75th percentile | $210,000 | $234,000 | $249,900 | $255,499 |
The data in the table displays the proportion of sales (for a given quarter) that sold at or above a particular price. So, for example, we can see that in the 1st quarter of 2012 6.95% of the sales occurred at or above $350,000. By the 4th quarter, that same price range accounted for over 12% of the sales.
As another example, in Q1 27.24% of the sales occurred at or above $200,000. In Q4, the $200,000 and over price range accounted for over 42 percent of the sales.
By subtracting the percentages shown from 1, one can obtain the number of homes that sold for less than a particular price point. For example, looking the $100,000 price point, we can see that in Q1 22.5 percent of home sales occurred below $100,000. In Q4, less than 10 percent of homes sold for under $100,000.
What do you make of the numbers? Where do you see the numbers going into 2013? Would love to hear your comments.
Note: The home sales price data reported above covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – January 2013. Note: This information is deemed reliable, but not guaranteed.
Twister
Wow, supply and demand really does work! Who woulda thunk it a year ago. With all that “shadow inventory” laying around we were doomed for years to come. With the overwhelming negative view of the housing market a year ago, few saw that something I would like to call ‘shadow demand’ would be the real story that played out in 2012 and will continue in 2013. Happy New Year!
dddd
“shadow demand” lol
BanteringBear
It is only a matter of time before the massive backlog of inventory comes to market and hammers prices. There are around 10,000 houses in Washoe County alone which are in delayed foreclosure due to AB 284. These are in addition to the many thousands of vacant houses the banks already own but have not listed for sale on the mls. Drive down almost any street and you can find a vacant property with no for sale sign. The people preaching “housing recovery” are the same dolts who thought house prices could never fall in the first place.
Sully
This guy says it all (note ‘Round-Up’) :
http://mhanson.com/archives/1147?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+MarkHansonAdvisers+%28Mark+Hanson+Advisors%29&utm_content=Yahoo!+Mail