- The median sales price has continued its settling trend over the past 24 months. More buyers and investors are deciding it is an opportune time to purchase a home. High inventory and low prices reflect the affordability of homes, verified by the increase in home sales.
Reno-Sparks Homes Median Sales Price
- May 2011 median price was down 3.6% to $147,900 compared to $155,250 in April 2011.
- The median sales price continues to settle from the prior months.
- For the past nine 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 Price per Square Foot Sold
- Price per square foot is at $90.34.
- Price per square foot by area groups, as provided in the Detailed Report, is a good way to compare similar homes within a specific area.
Reno-Sparks Homes Sold
- This May’s unit sales of 496 single family homes is the second highest May in the history of sales reported through the MLS. Statistical records date back to 1989.
- May ended the month with 496 single sold transactions, up 15.1% from the prior month.
- Sales were up 10.2% from the same periord last year, which continued to be influenced by the First Time Home Buyer tax credit.
- This month’s sales were only exceeded by May 2005 (644 units sold), which occured during the real estate boom.
Average Days on Market
- The average days on market are 134 days, down 3.1% from April 2011.
Day on Market (DOM) by Special Conditions (New Report)
- Short sales continue to influence the average days on market with over 190 DOM.
- Properties with no special conditions, REO, or Other show a range of between 90 and 120 DOM
Reno-Sparks Homes New Listings
- 787 new listings were taken in May compared to 785 in April, a less than 1% increase.
Distressed New Listings by Special Conditions (New Report)
- The percentage of “Distressed” new listings was down 3% from the prior month.
- 60% of new May listings were distressed – 243 Short Sales, 217 Bank Owned/Other
- The number of new listings with no special conditions has increased for the past five months, while the number of short sale listings have declined. After a recent peak in December 2010, REO new listings have remained stable.
- Note: 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 represent 58% of the total active pendings; Active Pending Loan equals 18%; Pending No-show represents 18%; Active Pending call 5%; and Active Pending House less than 1%.
Reno-Sparks Homes Months Supply of Inventory (Unsold Inventory divided by Sales per Month)
- As of May 31, there was 6.8 months of unsold inventory based on the May sales rate.
Historical Months Supply of Inventory
- Historical Months Supply of Inventory show that May MSI is down 1.2 months from April and May 2010.
- In the past twelve months, there have been five months 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 remaining in active status in the active inventory.
- May 2011 median home price of $149,700 is the lowest the Reno area has seen since 2000.
- May 2011 closed sales numbers set a near record as being the second best May for single family sales number in history.
- Year-to-date 2011 unit sales numbers continue to out-perform 2010 unit sales by 2%.
- In May, the “Bank-owned” sales category held the dominant share of the market with 40% of the closings.
- The affordability door is open to a wider range of buyers. This means that a two-income, household earning approximately $10 per hour each, can now afford the median priced home in the Reno/Sparks area.
- Mortgage rates are at historic lows. Rates are predicted to move up before year end. For those with stable jobs and who expect to stay in their home long-term, it’s an excellent time to buy.
- The number one market requirement for Nevada is jobs!
- For buyers, it’s buyer confidence and credit worthiness to qualify for financing under stricter underwriting guidelines.
- At current median prices, the dream of homeownershp has never been more affordable.
Report courtesy of Reno/Sparks Association of REALTORS® with data sourced from Northern Nevada Regional MLS
To read the full report complete with charts, graphs and 5 year history Reno Sparks Homes Real Estate Report May 2011.
To read Reno-Sparks Homes and Real Estate Report April 2011. Previous months can be found under Categories: Reno/Sparks Market Reports