Reno-Sparks Homes and Real Estate Market Report March 2011

Summary:

March 2011 is the third highest month for home sales for a March since 1989 and only 7 home sales off the second highest number.  With the current affordable median sales prices and historic low interest rates, individuals and families are finding that there are tremendous housing deals to be found.  An individual or family with an income of about $40,000 can afford the median price home in the greater Reno-Sparks area.

Reno-Sparks Median Home Price

• March 2011 median price was down 1% to $160,000 compared to $161,000 in February 2011.
• The median sales price has remained relatively stable for the past twenty-two months.
• For the past seven consecutive months median price has been lower than the prior year-over-year median.
• Median price is defined as the mid-point, the price for half of the sales for the time frame is below and half are above.

Reno-Sparks Homes Sold

• This March’s home sales of 502 single family homes are the third best March in the history of sales reported through the MLS.  Statistical records date back to 1989.
• The two prior month’s of March that had higher records sales were March 2004 (509 units sold) and March 2005 (584 units sold), both during the real estate boom.
• March ended the month with 502 sold transactions, up 30.4% from the prior month.
• Sales were up 5.2% over the same period last year.
• We continue to see an increase in March year-over-year sales for the fourth consecutive March.

Sold-to-asking-price-Ratio

• March reported sales received an average of 98.0% of the seller’s final asking price.

Reno-Sparks New Listings

• 715 new listings were taken in March compared to 620 in February, a 15% increase.
• The percentaage of “Distressed” new listings was up less than 1% from the prior month.  68% of new March listings were distressed, 292 Short Sales, 183 Bank Owned/Other.
• Properties reported as “other” which includes “Fannie Mae’s, Freddie Mac’s and HUD’s” are included with Bank Owned REO properties.

Status of Pending

• Active Pending -Short Sales represents 63% of the total active pendings; Active Pending Loan equals 15%; Pending No-show represents 16%; Active Pending call 5%; and Active Pending House less than 1%.

Reno-Sparks Months Supply of Inventory  (Unsold Inventory divided by Sales per Month)

• As of March 31, there was 6.3 months of unsold inventory based on the March sales rate.
• Historical Months Supply of Inventory show that March MSI is down 2.2 months from February and less than one month fom March 2010.
• In the past twelve months, there have been four months, including March, which have fallen into what is defined as a balanced market.  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 in the active inventory.

Conclusion:

• Homes at the current median price align with the area median income levels.  This creates a perfect opportunity to make homeownershhip a reality.  It allows a family or individual to put down roots and enjoy homeownership.  At the current median price and historic low interest rates, an individual or family with an income of about $42,000 can afford the median price home in the greater Reno/Sparks area.
• This March’s unit sales are the third best March in the history of sales reported through the MLS.  Statistical records date back to 1989.
• Begining in December 2010, this is the fifth consecutive month the market has seen record or near record numbers in year over year sales.
• Year-to-date 2011 sales are 111 sales ahead of 2010.
• In March, the “Bank-owsed” sales category held the dominant share of the maraket with 41% of the closings.
• Year-over-year March median sales price is down 8.6%.  Spring typically begins the trend of improving prices after the winter cool down.
• New Pendings were up 3.3% from February numbers.  March had 91 more new listings than February a 12% increase.  A balanced market will be dependent upon continued strong sales keeping up with the volume of listings coming onto the market.
• New Listings are up 15% from February with a slight increase in the percentage of  “distressed” listings.
• The size of the active inventory in March, net of any pending sales, increased 5% from February with 1,800 single family homes available for sale in the greater Reno/Sparks area.
• New to the report is the Historical Months Supply of Inventory that shows March in what is described as a balanced market.  In the past twelve months, there have only been four months, including March, which have fallen into what is defined as a balanced market.

Data sourced from NNRMLS under license for the Reno Sparks Association of Realtors

To read the complete report with charts and graphs for five years RSAR Reno Sparks real estate market Reports March 2011

To read the Reno-Sparks Homes and Real Estate Market Report February 2011

To read previous months and years report on my website click the Reno-Sparks Market Reports” category link.