Well, the big news regarding July’s numbers is that the median sold price has fallen for the first time since January. July’s median sold price was $216,000 — representing a 3.4 percent decrease in home prices from June’s median of $223,575. One month does not a trend make, but I also notice the median days on market increased compared to June’s days on market. Could these be the initial signs of a slight cooling of our white hot market of late?
Despite the drop in the median sales price, the median sold price per square foot (ppsf) did not fall. In fact, at $123.40/sq.ft., the median ppsf for July was slightly higher than June’s $123.19/sq.ft.
Median days on market (DOM) came in at 63 days. Although an increase over June’s median DOM of 58 days, this number still represents an extremely fast market.
Inventory climbed again — for the 7th consecutive month. While still a Seller’s market, the 920 currently available (non-pending) houses listed for sale represents a much-needed increase and continued upward trend over the past few months. Our market hasn’t seen inventory in the 900’s since February 2012.
This increase in inventory coupled with strong buyer demand is resulting in more houses being sold. 570 houses sold in July representing a 9.2 percent increase in month-over-month number of sales. July’s number of sales also represents a 10.9 percent increase in year-over-year sales from July 2012. And continuing the trend we’ve seen for the past few months, the majority of these sales have been normal “equity” sales (see the breakout below).
July sales by type break out as follows:
- REO sales: 7% – unchanged from June’s 7%
- Short sales: 21% – down from June’s 27%
- Equity sales: 71% – up from June’s 65%
Equity sales accounted for over 70 percent of the sales for the month of July.
July sales by price band break out as follows in the table below…
| sales price ($000’s) | units sold | cumulative % |
| 0 – 99 | 16 | 2.8% |
| 100 – 199 | 225 | 42.3% |
| 200 – 299 | 199 | 77.2% |
| 300 – 399 | 64 | 88.4% |
| 400 – 499 | 26 | 93.0% |
| 500 – 599 | 19 | 96.3% |
| 600 – 699 | 10 | 98.1% |
| 700 – 799 | 5 | 98.9% |
| 800 – 899 | 3 | 99.5% |
| 900 – 999 | 1 | 99.6% |
| 1M+ | 2 | 100% |
| total | 570 |
For those readers who prefer the median sold price for houses and condos combined, July’s 661 sold houses, condos and town homes exhibited a combined median sold price of $200,000 – Down 5.5 percent from June’s median sold price of $210,500 for 606 combined sales.
The table below contains the past 13 months of data…
| Month Year | # Sold | Median Sold Price | Sold Price per Sq Ft | Median DOM | # of Actives | # of Pendings |
| Jul 2013 | 570 | $216,000 | $123.40 | 63 | 920 | 1,455 |
| Jun 2013 | 522 | $223,575 | $123.19 | 58 | 859 | 1,527 |
| May 2013 | 536 | $218,500 | $119.43 | 64 | 756 | 1,563 |
| Apr 2013 | 480 | $205,375 | $112.65 | 79 | 579 | 1,519 |
| Mar 2013 | 490 | $195,000 | $108.83 | 92 | 502 | 1,479 |
| Feb 2013 | 422 | $190,100 | $105.02 | 104 | 474 | 1,485 |
| Jan 2013 | 360 | $181,300 | $102.48 | 114 | 465 | 1,462 |
| Dec 2012 | 492 | $186,500 | $102.42 | 107 | 539 | 1,421 |
| Nov 2012 | 524 | $181,000 | $99.61 | 105 | 640 | 1,646 |
| Oct 2012 | 537 | $180,000 | $97.79 | 102 | 728 | 1,772 |
| Sep 2012 | 473 | $175,000 | $98.41 | 92 | 836 | 1,811 |
| Aug 2012 | 536 | $175,500 | $98.52 | 86 | 882 | 1,846 |
| Jul 2012 | 514 | $165,000 | $94.59 | 88 | 832 | 1,873 |
Note: The medians table above is updated on a monthly basis. The median home price data reported 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 – August 2013. Note: This information is deemed reliable, but not guaranteed.
Click here for historical data back to 1998.
Related post: June median sales price, units sold, DOM, and inventory
MikeZ
Seems to me that … seeing sale price appreciation over the last 6-12 mos. with no corresponding growth in median household income meant that low interest rates and/or other transient factors were driving the increase in sale prices … and now, with mortgage rates rising and incomes still stagnant, it’s no surprise that price appreciation has reversed.
bob_c
cap rates are starting to not pencil out at these levels….yield can be chased elsewhere with interest rates rising.
Bonanza
“it’s no surprise that price appreciation has reversed.”
Could it be that there just is more supply on the market (resale and new)?
Twister
So far, rising mortgage rates dont appear to be holding back buyers. In fact, just the opposite is happening with July having the most houses sold over the last 12 months. It could be bringing more sellers out though but as long as the demand is there to keep supply in check, we wont see a downward trend in the median. Also plenty of cash buyers in the market that dont worry about a one or two percent rise in mortgage rates. The recent increase in inventory is probably going to help put us in a leveling off period with prices. I think we’ll see a range of between 205k and 235k for the median through to early 2014.
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[…] we have seen home prices begin to level off. July was the first time since January that the median sales price did not increase. And, although I haven’t posted August numbers yet, the median sold price in Reno-Sparks for […]