RSAR Monthly Market Report – May 2013

Below please find May 2013’s market report, 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 see a chart of the median sale prices going back eight years.
Check out all the numbers be clicking on the report below.

Commentary from May’s report:

• Sales in the category of no special conditions represented 65% of the sales in May 2013 compared to 37% of the market in May 2012. Equity sellers entering the market and investors who purchased at or near the bottom of the market continue to be the main source of inventory and sales.
• 
  Median price has been trending up for the past sixteen months. Even with the increasing median prices, medium is currently at 2003 level and is still off 37% from the peak of the market in 2005.
• 
  In May 2013, there were 87 active listings under the $200,000 price range compared to 139 active listings in May 2012, a decline of 37%.
• 
  After a historic inventory low in December 2012 at 305, new listing inventory has been trending up for the past five months and is up 22% over May 2012. Low interest rates and affordable pricing continue to put demand on inventory, which is resulting in increased median price.
• 
  For the fourth consecutive month, the sold to asking price ratio exceeded 100%. May sold to asking price ratio reached a new high at 101.1%.
• 
  Listings in the category of no special conditions were up 43% over May 2012; in the category of Short sales, listings were down 39% from May 2012, and in the category of bank owned, listings were down 36% from May 2012.
• 
  With the increase in prices, some sellers may have moved into an equity seller position or are closer to a positive equity position. 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 Fernley are taking 180 days to receive an approval and close 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.
• For buyers, affordability is now! At today’s interest rates, a buyer purchasing a median priced home with 5% down payment and a 30 year fixed loan would pay $238.00 in monthly payments more than they would have paid for the same median price home in 2003. Waiting for home prices to decline may lower their purchasing power and cost buyers more in increased interest rates in the long run. Interest rates have been increasing slightly for the past four months.
• The National Association of Realtors reports nationwide, “Without new inventory from construction or investor sale of properties, expect continued strong price growth. Even if prices stabilize at current levels, year over year price growth will be in the months ahead would average 6%.”

related post: RSAR Monthly Market Report – April 2013