reno/sparks association of realtors® · – short sale properties had an average days on market of...

Database Analysis Excellence

Proprietary

Reno/Sparks Association of REALTORS®

October, 2013

Market Report

Area 100, Greater Reno/Sparks

This report is designed to assist REALTORS® in analyzing current market conditions and trends. If you are considering

buying or selling real estate, you should discuss this report with a real estate professional, a REALTOR®.

Octo

ber,

2013

Members of the Reno/Sparks Association of REALTORS® are authorized to reproduce

and redistribute this copyrighted report. No other reprint or distribution of this report is

granted unless specifically approved in writing by the Reno/Sparks Association of

Realtors, 5650 Riggins Court, Reno, NV 89502 or email to [email protected].

Data Sourced from NNRMLS. Created by NLS under license for RSAR.

Market Report Outline

Commentary

Median Sales Price – Annualized by Area Group

– By Special Conditions

Number of Units Sold

Days on Market – By Month


New Listings – By Month

– By Price


Distressed Listings – By Price

– As a Percentage of Listings

Status of Pendings

Months Supply of Inventory – Current Month

– Historical 8 year, by Month

Units and Absorption – by Price

– by Area Group

– by Condition

Data Assumptions: – Region defined as Area 100

– Home Type defined as Site/Stick Built

– This data is accurate to the best of the knowledge of Reno/Sparks Association of REALTORS® based on data reported to the NNRMLS as of November 10th, 2013.

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mailto:[email protected]

Octo

ber,

2013






Market Report Commentary

Summary “As we approach the end of 2013, we are continuing to see a year-over-year increase in the number of traditional existing home sales versus short sale or bank owned home sales,” said Helen Graham, 2013 president of the Reno/Sparks Association of REALTORS. “Despite a limited inventory, a government shut-down and increasing interest rates, total unit sales numbers year to date are tracking slightly ahead of 2012. The median sales price has remained stable for the past five months, which may be due to the beginning of the seasonal softening along with increasing interest rates.”

Median Sales Price – October 2013 median price was down -3.8% to $215,000 compared to $223,500 in September 2013 and up 19.4%

compared to $180,000 in October 2012.

– Median price is defined as the mid-point, where, for the time period identified, the price for one-half of the sales are higher and one-half are lower.

Annualized Median Price by Area Group – This chart shows the annualized median price by-area-group year over year. Each vertical bar represents the

median for the prior 12 months of data.

Median Price by Special Conditions – October, 2013 median price on properties with no special conditions was down -8.9% to $225,000 compared to

$247,000 in September, 2013 and up 3.8% compared to $216,800 in October, 2012.

– October, 2013 median price on REO (Bank Owned) properties was up 4.0% to $182,000 compared to $175,000 in September, 2013 and up 9.6% compared to $166,000 in October, 2012.

– October, 2013 median price on short sales properties was down -2.2% to $166,250 compared to $170,000 in September, 2013 and up 10.8% compared to $150,000 in October, 2012.

Number of Units Sold – October, 2013 units sold was up 4.5% to 532 compared to 509 in September, 2013 and down -1.1% compared to

538 in October 2012.

Average Days on Market – October, 2013 average days on market was down -9.1% to 96 compared to 106 in September, 2013 and down -

31.1% compared to 139 in October 2012.

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Octo

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Market Report Commentary, continued

Days on Market (DOM) by Special Conditions – Short sale properties had an average days on market of 207.

– Properties with no special conditions had an average days on market of 74.

– REO Properties had an average days on market of 88.

New Listings – October, 2013 new listings was up 6.4% to 631 compared to 593 in September,

2013 and up 33.4% compared to 473 in October 2012.

– Properties listed at under $250,000 made up 54% of new listings entering the market during the month of October, 2013.

– 23% of new October, 2013 listings were distressed. Short sales 17%; REO 5%; No special conditions 77%; and Other 1%.

Distressed New Listings History – The allocation of new listings by special conditions increased, representing 22% of

the market in October 2013, down from 20% in September 2013, and 49% in October 2012.

Status of Pending – Active/Pending-Short Sale represent 41.3% of the total active pendings;

Active/Pending-Loan equals 23.3%; Pending-No Show represents 24.6%; Active/Pending-Call 8.9%; and Active/Pending-House 1.9%.

Current Months Supply of Inventory (Unsold Inventory over Sales per Month)

– At the end of October, 2013, there was 3.8 months of unsold inventory based on the monthly sales rate.

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2013







Historical Months Supply of Inventory – Historical Months Supply of Inventory (MSI) was down in October, 2013 to 3.8, and down from 4.6 in October,

2012.

– 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.

Units and Absorption by Price – No price bands are in a balanced market.

– Properties over $500,000 are a buyer’s market.

– All prices bands below $500,000 have less than 4.9 month’s supply of inventory and would be considered seller’s market.

– 62% of the total sales for the month of October were in the under $250,000 price range.

Units and Absorption by Area Group – Spanish Springs had the highest level of active inventory with 170 Active listings.

– The North Valleys, Northwest, Spanish Springs, and Metro Southwest show the highest level of activity in pending sales for the month.

– The North Valleys, Northwest and Spanish Springs show the highest volume of closed sales for the month.

– Suburban Southwest is considered a balanced markets within 5 – 7 month’s supply of inventory (MSI). Metro Southwest, VC Highlands, and Washoe Valley are a buyer’s market. All remaining areas are considered a seller’s market with less than 4.2 MSI.

Units and Absorption by Condition – The Month’s Supply of Inventory in the category of Real Estate Owned properties remains low at 3.8 MSI in

October, 2013.

– No Special Conditions condition properties has 3.0 MSI, Short Sale properties has 7.4 MSI, and Yes-Other 2.0.

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Conclusion – After the ramp up in sales during the spring and summer months, October unit sales is down

1.1% from October 2012 and up 4.5% compared to September 2013. With a decline in pending sales last the last three months, along with typical seasonal trends, the decline is not unexpected.

– The median sales price has remained stable for the past five months. This may be due to the beginning of the seasonal softening of median sales price along with increasing interest rates.

– Listings with no special conditions are up 195% from October 2011 and up 52% from October 2012. Traditional home sellers and those investors who were savvy enough to purchase at the bottom of the market now hold the majority of the inventory.

– For the consecutive second month, the sold-to-asking price ratio was below 100%. October sold-to-asking price ratio was at 99.7% compared to September 2013 at 99.5%. Although there is still strong buyer demand, we are not seeing the sales price exceed the list price as was the trend the first eight months of 2013.

– The leadership of the Reno/Sparks Association of Realtors recently attended the National Association of Realtors Annual Conference in San Francisco. Among the topics discussed was the possible extension of the Mortgage Forgiveness Tax Relief Act. According to NAR’s Chief Lobbyist, Jerry Giovaniello, an extension of the Act has only a 20% chance of being enacted. If it is introduced and passed, it most likely will not occur before year end. This will leave many short sale sellers hanging in uncertainty. The good news is that active short sale listings represent only about 17% of the current inventory. The bad news is that pending short sales represents 50% of the market. It’s time to put added pressure on lenders and asset managers to act on these short sales and close before December 31, 2013, when the current bill expires.

This report is designed to assist REALTORS® in analyzing current market conditions and trends. If you are considering buying or selling real estate, you should discuss this report with a real estate professional, a REALTOR®.

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Octo

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7

Median Sales Price

$180,0

00

$181,0

00

$186,5

00

$181,3

00

$190,1

00

$195,0

00

$205,0

00

$219,0

00

$224,9

50

$215,0

00

$220,0

00

$223,5

00

$215,0

00

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13

Closing Month

Median Sales Price, 13 months

Time Period Change

Prior Month -3.8%

Prior Year 19.4%


Octo

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8

Summary: Median Sales Price

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13

Closing Month

Median Sales Price, 8 years


Octo

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2013






Price per Square Foot

9

$131

$80

$90

$100

$110

$120

$130

$140

Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13

Sold Dollars per Square Foot, 5 year History


Octo

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2013






10

Annualized Median Price by Area Group

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

MetroSouthwest

NewSoutheast

NorthValleys

Northwest OldSoutheast

SpanishSprings

Sparks SuburbanSouthwest

VCHighlands

WashoeValley

WestSuburban

37-48 Months ago

25-36 Months ago

13-24 Months ago

1-12 Months ago


Octo

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2013






$216,800

$247,000

$225,000

$166,000 $175,000 $182,000

$150,000

$170,000 $166,250

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

$260,000

None

REO

Short

11

Median Sales Price by Special Condition

Distressed listings are defined as follows: REO – property has been foreclosed upon and is being sold by the bank, HUD or VA. Short Sale - seller

owns more for the property than current value.

Time Period Change-None Change-REO Change-Short

Prior Month -8.9% 4.0% -2.2%

Prior Year 3.8% 9.6% 10.8%


Octo

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2013






12


53

8

52

5

49

2

36

0

42

2

49

1

48

1

53

9

53

2

58

7

63

5

50

9 53

2

300

350

400

450

500

550

600

650

700


Closing Month

Number of Units Sold, 13 months

Time Period Change

Prior Month 4.5%

Prior Year -1.1%


Octo

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2013






13


100

200

300

400

500

600

700


Closing Month

Number of Units Sold, 8 years


Octo

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2013






139

133 140

139

139

132

133

109

94

95 99 106

96

80

90

100

110

120

130

140

150


Average Days on Market for Solds, 13 months

Days on Market, by Month

14

Time Period Change

Prior Month -9.1%

Prior Year -31.1%

50

70

90

110

130

150

170


Average Days on Market for Solds, 8 years


Octo

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2013






15

Days on Market, by Special Conditions

88

207

74

77

0

50

100

150

200

250

Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13

Da

ys

on

Ma

rke

t

Closing Month

Average DOM, 13 Months

REO

Short

None

Other


owns more for the property than current value.


Octo

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2013






473

393

306 410

482 576 678 769

744

675

730

593

631

-

100

200

300

400

500

600

700

800

900


New Listings by Month, 13 months

16

New Listings, by Month

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800


New Listings by Month, 5 years

Time Period Change

Prior Month 6.4%

Prior Year 33.4%


Octo

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2013






New Listings, by Price and by Special Condition

27

67

12

1

12

4

10

1

93

43

32

23

-

20

40

60

80

100

120

140

$1 to$100,000

$100,000 to$150,000

$150,000 to$200,000

$200,000 to$250,000

$250,000 to$300,000

$300,000 to$400,000

$400,000 to$500,000

$500,000 to$750,000

Over $750,000

New Listings, by Price Range

48

3

10

8

31

5

3

1

-

100

200

300

400

500

600

None Short Sale REO Subject to Court Relocation Yes-Other

New Listings, by Special Condition

17


owns more for the property than current value. Distressed New Listings includes Fannie Mae, Freddie Mac, HUD, and any bank-owned listings.


Octo

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2013






Distressed Listings, by Price



67%

51%

22%27%

17%

5% 5%9%

4%

0%

20%

40%

60%

80%

$1 to$100,000

$100,000 to$150,000

$150,000 to$200,000

$200,000 to$250,000

$250,000 to$300,000

$300,000 to$400,000

$400,000 to$500,000

$500,000 to$750,000

Over $750,000

Percentage Distressed New Listings by Price, current month

Percent Distressed

Market Average

18

3427

33

17

5 2 3 19

33

94 9184 88

41

2922

0

10

20

30

40

50

60

70

80

90

100

$1 to$100,000

$100,000 to$150,000

$150,000 to$200,000

$200,000 to$250,000

$250,000 to$300,000

$300,000 to$400,000

$400,000 to$500,000

$500,000 to$750,000

Over $750,000

Number of Distressed and NonDistressed New Listings by Price, current month

Distressed

Non-Distressed

18


Octo

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2013






19

Distressed Listings, as a percentage of all listings



Distressed listing data considered reliable from January 2009 forward.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Perc

enta

ge o

f Lis

tings

Listing Month

New Listings by Special Conditions

None

Other

Short

REO


Octo

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2013






20

Status of Pendings, Current Month

Active/Pending-Short Sale

41.3%

Pending-No Show24.6%

Active/Pending-Loan23.3%

Active/Pending-Call8.9%

Active/Pending-House1.9%


Octo

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21

Months Supply of Inventory, Current Month

Unsold Inventory includes Active Pendings. This method of reporting absorption follows the industry standard and includes pendings in Active Inventory.

Absorption or Months Supply of Inventory is defined as the number of months it would take to absorb the units available for sale.

The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply of inventory.

9641050

532

0

200

400

600

800

1000

1200

Nu

mb

er

of

Un

its

All Areas Together

(964 + 1050) available / 532 units sold = 3.8 months of inventory

Active Available EOM

Active Pending EOM

Sold during month


Octo

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2013






22

Months Supply of Inventory, Historical 5 years

Unsold Inventory includes Active Pendings. This method of reporting absorption follows the industry standard and includes pendings in Active Inventory.



4.64.3

3.8

0

2

4

6

8

10

12

14

16

18

20O

ct-0

8

De

c-08

Feb

-09

Ap

r-0

9

Jun

-09

Au

g-0

9

Oct

-09

De

c-09

Feb

-10

Ap

r-1

0

Jun

-10

Au

g-1

0

Oct

-10

De

c-10

Feb

-11

Ap

r-1

1

Jun

-11

Au

g-1

1

Oct

-11

De

c-11

Feb

-12

Ap

r-1

2

Jun

-12

Au

g-1

2

Oct

-12

De

c-12

Feb

-13

Ap

r-1

3

Jun

-13

Au

g-1

3

Oct

-13

Month's Supply of Inventory, 5 year history


Octo

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2013






Units and Absorption, by Price

“Active” includes “Active/Pending”



16

44

10

9 12

8 15

0

16

0

72 1

05

18

0

81

18

7 21

1

16

7

14

3

14

2

54

40

25

20

82

13

4

96

67

69

29

18

17

0

100

200

300

$1 to$100,000

$100,000 to$150,000

$150,000 to$200,000

$200,000 to$250,000

$250,000 to$300,000

$300,000 to$400,000

$400,000 to$500,000

$500,000 to$750,000

Over $750,000

Active and Sold Homes by Price, current month

Active Available EOM

Active Pending EOM

Sold during month4.9

2.8

2.4 3.1

4.4

4.4

4.3

8.1

12.1

0

2

4

6

8

10

12

14

$1 to$100,000

$100,000 to$150,000

$150,000 to$200,000

$200,000 to$250,000

$250,000 to$300,000

$300,000 to$400,000

$400,000 to$500,000

$500,000 to$750,000

Over $750,000

Mo

nth

s o

f In

ve

nto

ry

Absorption by Price

23


Octo

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2013






Reno/Sparks Area Map

24


Octo

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2013






Units and Absorption, by Area Group

15

9

56

10

8

85

36

17

0

71

15

8

22

37

60

11

1

92

21

6

12

1

51

21

2

10

8

77

13

13

36

36

42

10

0

73

42

93

70

42

5

6

23

-

50

100

150

200

250

Metr

o

Sou

thw

est

New

Sou

theast

Nort

h

Valle

ys

Nort

hw

est

Old

Sou

theast

Spa

nis

h

Spri

ngs

Spa

rks

Sub

urb

an

Sou

thw

est

VC

Hig

hla

nds

Wa

shoe

Valle

y

We

st

Sub

urb

an

Inventory and Units Sold, by Area Group

Active at EOM

Pending at EOM

Closed in Month

7.5

3.5

3.2

2.8

2.1

4.1

2.6

5.6

7.2

8.3

4.2

0

1

2

3

4

5

6

7

8

9

Metro

South

west

New

South

east

North

Valle

ys

Northw

est

Old

South

east

Spanis

hS

prings

Spark

s

Suburb

an

South

west

VC

Hig

hla

nds

Wash

oe

Valle

y

West

Suburb

an

Mo

nth

s o

f In

ve

nto

ry

Absorption by Area Group

25


Octo

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2013






Units and Absorption, by Special Condition

Distressed listings are defined as follows: REO – property has been foreclosed upon and is being sold by the bank, HUD or VA. Short Sale - seller owns

more for the property than current value.

“Active” includes “Active/Pending”



810

42 101 1

456

37

537

1

416

21 86 10

100

200

300

400

500

600

700

800

900

None REO Short Sale Yes-Other

Active and Sold Homes by Condition, current month

Active at EOM

Pending at EOM

Closed in Month

3.0

3.8

7.4

2.0

0

1

2

3

4

5

6

7

8

None REO Short Sale Yes-Other

Mo

nth

s o

f In

ve

nto

ry

Absorption by Condition

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reno/sparks association of realtors® · – short sale properties had an average days on market of...

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