I’ve just received October’s Market condition report from our friends at First Centennial Title. Click on the picture to enlarge.
Synopsis from the report:
- OVERVIEW: Activity holding at current levels with no big movements. SFR Prices appear to have stabilized (slightly negative) in the current range while Condo displayed unexpected weakness. This trend in Condo prices is not likely to continue given that the ask price of Condos in escrow is in the mid $80’s.
- SUPPLY (ON MARKET): Moderate increase in supply for both types.
- DEMAND (SOLD PER MONTH): Demand increased for SFR (+29 units) but backed off for Condo (-9 units).
- FAILURES (EXPIRE-WITHDRAW): Holding steady in the current range.
- IN ESCROW (FUTURE CLOSINGS): Up slightly from October for SFR (+9 units); down slightly for Condo (-5 units). So long as the level of escrow is relatively stable, closings will remain rather constant at current levels.
- PERCENT SELLING: Very steady in the current range with little movement for either type.
- MONTHS SUPPLY: This key measure tightened but the change was small. This signals a continuation of current activity levels.
- MARKET SPEED: The pace of the Reno market is stable at current levels for both types. The best performing Reno submarket remains Fernley SFR, returning a Market Speed of 42 (up from last month). The slowest is Yerington SFR at a very sluggish 8. The market seems to “hovering” around these current values with significant change neither occurring or forecasted in the near term.
- PRICES: Both SFR and Condo returned median price declines with Condo posting a rather large (and unexpected) negative deviation (see comments in overview). Expect up and down movement from month to month. Large changes in price should not be expected, while relatively small diminishing negative shifts are more likely. This trend is generally in line with other markets surveyed.
Recent MCR reports:
California gets all the national press because the numbers there are so huge. But on a per capita basis, Nevada’s budget shortfall is virtually as bad as California’s. Nevada’s unemployment rate is worse than Califonia’s, as is its mortgage delinquency rate. It is true that Nevada’s numbers are heavily influenced by Las Vegas and Clark County, but the reality is that as goes Clark County so goes Nevada.
Nevada is going to lag any national recovery. Nevada will be one of the last states to see it’s unemployment rate improve. That is not good news considering only Michigan has a worse unemployment rate.
Gaming and sales tax revenue in Nevada overall and in Washoe County have been down now for
21 consecutive months.
Exactly Cooley. I’m (one of the few apparently) who also sees Nevada as worse off than CA. Besides the equal per-capita deficit, tax revenues are still too dependent on (locally dying) tourism. And unfortunately our state government has taken a more heads-in-the-sand approach than CA has…budgets built on over-optimistic projections.
But Steve, maybe the new tourism marketing slogan mentioned today in the local newspaper will save everything. After all, “Reno-Tahoe is far from expected” whatever that means.
I have nothing to say, good or ill, about the new slogan.
I doubt it will reverse the region’s visitor counts, though.