Sales actually were up in June 2008 compared to June 2007, by 2%. The under $300K range continues to work through inventory, as did the $300K-$500K realm this month. The worst performer was the $1-$2 million range with only three sales and 78 months of inventory. It's still a buyer's market as only 9% of the homes available on our local MLS actually sell. In other words, sellers continue to face a 91% chance of failure attempting to sell a residence in this market. But that is a small improvement over last month's 92%.
The under $300K price range saw more days on the market while months' supply of inventory declined from ten to nine. In June, these properties closed for 96% of asking price in 135 days (from 118) for an average $213,753 (from $213, 698). The market absorption rate for newly listed properties increased to 51% (from 44%). 524 new listings (from 543) contributed to the total 2,422 (from 2,375) offered for sale in this price range, leaving us a 9-month supply of homes (from 10). Expired listings increased slightly to 19% (from 18%).
This month the $300K-$500K range bounced back into balanced territory, with months' supply of inventory reduced to 11 as days on the market decreased. In June, of 264 new listings (from 238), 37% sold (from 32%). The average selling price was $373,517 (from $364,022). They closed in an average 144 days (from 164) for 96% of asking price (from 94%). With 1,118 listings in this category (from 1,135), we have an 11-month supply of inventory (from 15). Expireds decreased to 11% (from 17%).
Last month's anomalous bump in average price returned to normal in the $500K-$1 million range this June, with fewer days on the market and still more than two years of inventory. Of 133 recently listed homes (from 137), 27 sold (from 25), representing a 20% absorption rate (from 18%). The average sale price in this category was $678,165 (from $715,556). These properties closed in an average 144 days (from 169) for 96% of asking price (from 94%). With a total 700 listings in this category (from 678), we have 26 months of inventory (from 27). Expireds increased to 20% (from 18%).
The $1-2 million price range fell into the near dead zone with only three sales this month. Of 34 recently listed homes (from 28), 3 sold (from 11), representing a 9% absorption rate (from 39%). The average sale price in this category was $1,468,115 (from $1,459,954). These properties closed in an average 180 days (from 270) for 98% of asking price (from 93%). With a total 233 listings in this category (from 242), we have 78 months of inventory (from 22) at the current rate of sale. Expireds increased to 29% (from 21%).
The $2 million-plus realm had three closings this month with no expirations (again). The average sale price was $2,516,666. After an average 286 days on the market, they closed for 90% of asking price. With 66 total listings in this category (again), at the current rate of sale, we have a 22-month supply of inventory.
159 residential listings expired during the month of June (from 165), while 253 were withdrawn from the market (from 275). Withdrawals are some combination of sellers giving up, sellers changing agents, and/or listing agents taking non-sellers off the market to wait it out for a while.
So, what's pending?
In the under $300K range, there are 580 pending sales (from 570). In the $300K-500K range, there are 172 pendings (from 208). In the $500K-$1M range, we have 49 (from 54). In the $1-2M range, we have 11 pendings (again), while in the $2M plus range, there is one. The grand total? 813 pendings (from 847). Of all pendings, 256 are short sales (from 237).
253 homes closed in December, 195 in January, 220 in February, 250 in March, 340 in April, 351 closed in May and 405 closed in June. Compare this to 397 from June, 2007. For the first time I can remember, sales are actually up year over year.
Reno is a hidden gem in Northern Nevada. Thirty minutes from the wonders of Lake Tahoe and surrounded by gorgeous mountain views, the area continues to attract new residents. Unemployment is relatively low, quality of life is high, and long term appreciation potential (once we get past the current slowdown) could be significant.
About Diane Cohn:
Diane Cohn began her real estate career as an investor. She has an instinct for appreciation that guides her to the best opportunities for long term gain, and she delights in helping others profitably fulfill their own real estate investment objectives.
Diane grew up in Stockton, California. She put herself through college, graduating from UC Santa Cruz, and went right into high-tech. She found her niche in marketing at one of the world's most innovative companies, Apple Computer. Most recently she managed the company's worldwide user group program. There she learned to execute complex projects on accelerated schedules, create motivated teams that get results and implement creative marketing plans.
After 15 years of career success in Silicon Valley, Diane and her husband packed up and moved to Truckee. But investment opportunities in real estate soon lured them to Reno.
More than anything else, Diane loves spending time at home with her husband and two daughters. The girls attend school in Northwest Reno, where Diane also volunteers.
In her free time, Diane enjoys figure skating, backpacking, hiking, snowboarding, horseback riding, gardening and home decorating. She loves movies, especially action-adventure, and she is passionate about good coffee.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
