reno/sparks association of realtors® · reno/sparks association of realtors® ... year fixed-rate...

Database Analysis ExcellenceProprietary

Reno/Sparks Association of REALTORS ®

November, 2012Market 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®.

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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– By Special Conditions

� New Listings– By Month– By Price– By Special Conditions

� 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 December 10h, 2012

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Market Report Commentary

� Summary– "Although we are experiencing a limited supply of homes for sale, we saw very little change from the number of

homes sold in November in 2012 versus November 2011,” said Kevin Sigstad, 2012 president of Reno/Sparks Association of REALTORS. “We also are continuing to see the demand for homes on the rise as shown in the increase in median home price by 23 percent from November 2011 to the current level of $182,500. The high demand also continues to put pressure on the inventory of available homes for sale.“

� Median Sales Price – November 2012 median price was up .4% to $182,500 compared to $181,750 in October 2012 and up 22.5%

compared to $149,012 in November 2011. – 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 – Median price on properties with no special conditions is up 1.4% from the prior month and up 27.1% from the prior

year.– Median price on REO (Bank Owned) properties is up 11.4% from the prior month up 44.5% from the prior year.– Median price on short sales properties is up 3.3% from the prior month and up 3.7% from the prior year.

� Number of Units Sold – November ended the month with 503 sold transactions, down 5.5% from the prior month and up 1.2% from the

same period last year.

� Average Days on Market– The average days on market are 133 days, down 5.2% from the prior month, and down 9.3% from the

same period last year.

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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 189.– Properties with no special conditions 93 DOM.– REO properties had an average days market of 94.– Properties identified as Other had 145 DOM.

� New Listings– 378 new listings were taken in November compared to 472 in October, a 19.9% decrease from

the prior month and a 25% decrease from the prior year. – Properties listed at under $250,000 made up the 69% of new listings entering the market during

the month of November.– 42% of new November listings were distressed – Short Sales 29%; REO 10%; No special

conditions 57%; and Other 3%.

� Distressed New Listings History – The allocation of new listings by special conditions moved down with the volume of distressed

new listings representing 42% of the market in November, down from 48% in October 2012.– New Listings with no special conditions moved up in volume of listings to 58% of the market.

� Status of Pending– Active Pending – Short Sales represent 59% of the total active pendings; Active Pending Loan

equals 13%; Pending No-show represents 22%; Active Pending call 5.3%; and Active Pending House less than 1%.

� Current Months Supply of Inventory (Unsold Inventor y ÷ Sales per Month) – As of November 30, there was 3.9 months of unsold inventory based on the November sales

rate.

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� Historical Months Supply of Inventory– Historical Months Supply of Inventory shows that MSI was down in November 2012 at 3.9, and down from 6.4 in

November 2011. – 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– Properties in the price ranges between $500,000 - $750,000 price ranges are in a balanced market. – Properties in the prices ranges under $500,000 have less than 5 month’s supply of inventory and would be

considered seller’s market. – Properties over the $750,000 price range have in excess of 15 month’s supply of inventory.– 71% of the total sales for the month of November were in the under $250,000 price range.

� Units and Absorption by Area Group– Suburban Southwest had the highest level of active inventory with 161 Active listings.– The North Valleys, Northwest, Spanish Springs and Sparks 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. – Metro Southwest and Suburban Southwest are considered a balanced market within 5 – 7 month’s supply of

inventory (MSI). All remaining areas are considered a seller’s market with less than 4.6 MSI.

� Units and Absorption by Condition – The Month’s Supply of Inventory in the category of Real Estate Owned properties remains low at 2.5 MSI in

November 2012.– No Special Conditions condition properties has 3 Month’s Supply of Inventory, Short Sale properties has 5.3

Month’s Supply of Inventory, and Yes-Other 1.3%.

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� Conclusion– Despite lower inventory levels, sales remain strong. Total year-to-date sales for 2012 are ahead of 2011 by

181 sales. Year to date sales have out-performed the previous year-to-date sales for the past five years.

– New listings are following the trend of summer highs and winter lows. New listings in the month of November are at a record low.

– Short sale inventory reached a balance market in November. With the lack of bank owned properties and some urgency on the part of the seller’s facing the possible expiration of the Mortgage Debt Relief Act, the market is absorbing short sale inventory.

– Fixed-rate mortgages remain near record a low. This serves as an attractive incentive for potential home buyers.

– Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 29: 30-year fixed-rate mortgages averaged 3.32 percent, with an average 0.8 point, up slightly from a record-breaking 3.31 percent average. A year ago, 30-year rates averaged 4 percent. The 30-year fixed-rate mortgage has averaged below 4 percent for virtually every week in 2012, except for one.

– Realtors and homeowners are encouraged to contact their federal legislators and request that they “do no harm to real estate” by preserving the mortgage interest deduction.

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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7

Median Sales Price

$149

,012

$155

,000

$135

,000

$145

,500

$149

,900

$151

,100

$164

,750

$170

,000

$165

,000

$175

,000

$175

,000

$181

,750

$182

,500

$100,000

$110,000

$120,000

$130,000

$140,000

$150,000

$160,000

$170,000

$180,000

$190,000

Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12

Closing Month

Median Sales Price, 13 months

Time Period Change Prior Month 0.4% Prior Year 22.5%

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8

Summary: Median Sales Price

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12

Closing Month

Median Sales Price, 8 years

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Price per Square Foot

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Annualized Median Price by Area Group

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Metro

Southwest

New

Southeast

North

Valleys

Northwest Old

Southeast

Spanish

Springs

Sparks Suburban

Southwest

VC

Highlands

Washoe

Valley

West

Suburban

37-48 Months ago

25-36 Months ago

13-24 Months ago

1-12 Months ago

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$175,000

$219,500

$222,500

$128,000

$166,000

$185,000

$149,500 $150,000 $155,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

None

REO

Short

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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 1.4% 11.4% 3.3%

Prior Year 27.1% 44.5% 3.7%

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12

Number of Units Sold

497

534

449 46

5

540

526

524

514

514

533

471

532

503

300

350

400

450

500

550

600


Closing Month

Number of Units Sold, 13 months

Time Period Change Prior Month -5.5% Prior Year 1.2%

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13

Number of Units Sold

100

200

300

400

500

600

700

800


Closing Month

Number of Units Sold, 8 years

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146 149

146

132

145

145

143

142

134

123

135 14

0

133

100

110

120

130

140

150

160


Average Days on Market for Solds, 13 months

Days on Market, by Month

14

Time Period Change Prior Month -5.2% Prior Year -9.3%

50

70

90

110

130

150

170


Average Days on Market for Solds, 8 years

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15

Days on Market, by Special Conditions

94

189

93

145

0

50

100

150

200

250

Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12

Da

ys o

n M

ark

et

Closing Month

Average DOM, 13 Months

REO

Short

None

Other

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.

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504

432

579

519

607

598

613 66

3

659

610

549

472

378

300

400

500

600

700

800


New Listings by Month, 13 months

16

New Listings, by Month

300

500

700

900

1,100

1,300

1,500

1,700


New Listings by Month, 5 years

Time Period Change Prior Month -19.9% Prior Year -25.0%

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New Listings, by Price and by Special Condition

37

83

83

57

37

38

17

17

3 6

-

10

20

30

40

50

60

70

80

90

$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

$750,000 to$1.0MM

$Over $1.0MM

New Listings, by Price Range

214

111

39

5 5

-

50

100

150

200

250

None Short Sale REO Yes-Other Subject to Court

New Listings, by Special Condition

17

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. Distressed New Listings includes Fannie Mae, Freddie Mac, HUD, and any bank-owned listings.

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Distressed Listings, by Price

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. Distressed New Listings includes Fannie Mae, Freddie Mac, HUD, and any bank-owned listings.

73%

57%

41%33%

27% 26% 29%

18%

0% 0%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

$750,000 to$1.0MM

$Over$1.0MM

Percentage Distressed New Listings by Price, curren t month

Percent Distressed

Market Average

27

47

34

1910 10 5 3 0 0

10

36

4938

27 28

12 143 6

0

50

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

$750,000 to$1.0MM

$Over $1.0MM

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

Distressed

Non-Distressed

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19

Distressed Listings, as a percentage of all listing s

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. Distressed New Listings includes Fannie Mae, Freddie Mac, HUD, and any bank-owned listings. Distressed listing data considered reliable from January 2009 forward.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%P

erce

ntag

e o

f Li

stin

gs

Listing Month

New Listings by Special Conditions

None

Other

Short

REO

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20

Status of Pendings, Current Month

Active/Pending-Short Sale

59.4%

Pending-No Show22.2%

Active/Pending-Loan12.5%

Active/Pending-Call5.3%

Active/Pending-House0.6%

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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.

596

1355

503

0

200

400

600

800

1000

1200

1400

1600

Num

ber

of U

nits

All Areas Together

(596 + 1355) available / 503 units sold = 3.9 month s of inventory

Active Available EOMActive Pending EOMSold during month

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22

Months Supply of Inventory, Historical 8 years

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.

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Units and Absorption, by Price

“Active” includes “Active/Pending”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.

8 36

51

57

64

86

56

82

48 10

8

21

6

391

28

9

16

1

11

8

84

41

35

15 554 11

5

11

5

74

52

46

22

19 4 2

0

100

200

300

400

500

$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

$750,000 to$1.0MM

$Over $1.0MM

Active and Sold Homes by Price, current month

Active Available EOM

Active Pending EOM

Sold during month

4.1

3.7

3.0

2.9

3.5

3.7

4.4

6.2 15

.8

56.5

0

10

20

30

40

50

60

$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

$750,000 to$1.0MM

$Over $1.0MM

Mon

ths

of I

nven

tory

Absorption by Price

23

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Units and Absorption, by Area Group

116

24

49

37

13 77

24

161

9 36

50

123

100

291

190

72

256

158

86

22

10

47

41

35 10

2

61

19

117

50

36

7 10

25

-

50

100

150

200

250

300

350

Met

roS

outh

wes

t

New

Sou

thea

st

Nor

thV

alle

ys

Nor

thw

est

Old

Sou

thea

st

Spa

nish

Spr

ings

Spa

rks

Sub

urba

nS

outh

wes

t

VC

Hig

hlan

ds

Wa

shoe

Val

ley

We

stS

ubur

ban

Inventory and Units Sold, by Area Group

Active at EOMPending at EOMClosed in Month

5.8

3.5

3.3 3.

7 4.5

2.8 3.

6

6.9

4.4 4.6

3.9

0

1

2

3

4

5

6

7

8

Met

roS

outh

wes

t

New

Sou

thea

st

Nor

thV

alle

ys

Nor

thw

est

Old

Sou

thea

st

Spa

nish

Spr

ings

Spa

rks

Sub

urba

nS

outh

wes

t

VC

Hig

hlan

ds

Was

hoe

Val

ley

Wes

tS

ubur

ban

Mon

ths

of I

nven

tory

Absorption by Area Group

24

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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”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.

467

44 73 3272

59

1011

1248

42 204 30

200

400

600

800

1000

1200

None REO Short Sale Yes-Other

Active and Sold Homes by Condition, current monthActive at EOM

Pending at EOM

Closed in Month

3.0

2.5

5.3

1.3

0

1

2

3

4

5

6

None REO Short Sale Yes-Other

Mon

ths

of I

nven

tory

Absorption by Condition

25

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