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Market Conditions for Reno, Nevada
Reported by Diane Cohn, REALTOR, ABR, SRES
Updated May 13, 2008.
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Current Market Rating: 2
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Buyer's
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Seller's
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Current Price Trend: 2
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Falling
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Sales were off by 24% in 2008 compared to April 2007, as only 8% of the homes available on our local MLS actually sell. In other words, sellers continue to face a 92% chance of failure if they attempt to sell a residence in this market. The good news is that the affordable price categories have moved into balanced territory for the first time in many months.
The under $300K price range may be finding its bottom as buyers reduced inventory to a 10-month supply. 6-12 months is generally considered a balanced market, and it's been a long time since we've seen any price category move into balanced territory. In April, these properties closed for 97% of asking price (from 96%) in 140 days (from 131) for an average $218,066 (from $217,438). The market absorption rate for newly listed properties increased to 43% (from 33%). 520 new listings (from 499) contributed to the total 2,281 (from 2,141) offered for sale in this price range, leaving us a 10-month supply of homes (from 13). Expired listings decreased to 17% (from 20%).
The $300K-$500K range also moved into balanced territory by the skin of its teeth. In April, of 217 new listings (from 226), over 40% sold (from 29%). The average selling price was $363,146 (from $367,201). They closed in an average 164 days (from 194) for 96% of asking price (from 95%). With 1,080 listings in this category (from 1,088), we have a 12-month supply of inventory (from 16). Expireds decreased to 18% (from 21%).
Though months' supply of inventory improved significantly in the $500K-$1 million range this April, this market definitely still favors the buyer. Of 127 recently listed homes (from 97), 24 sold (from 14), representing a 19% absorption rate (from 14%). The average sale price in this category was $669,352 (from $679,636). These properties closed in an average 193 days (from 150) for 95% of asking price (from 94%). With a total 655 listings in this category (from 607), we have 27 months of inventory (from 43). Expireds decreased to 10% (from 22%).
With almost four years of inventory, the $1-2 million price range continues to languish. Of 40 recently listed homes (from 30), 5 sold (from 6), representing a 13% absorption rate (from 20%). The average sale price in this category was $1,383,800 (from $1,297,205). These properties closed in an average 287 days (from 314) for 91% of asking price (from 99%). With a total 227 listings in this category (from 211), we have 45 months of inventory (from 35). Expireds decreased to 8% (from 10%).
The $2 million-plus realm had one closing this month at $2,075,000, while 17% expired (from zero). With 64 total listings in this category (from 62), at the current rate of sale, we have a five-year supply of inventory.
143 residential listings expired during the month of April (from 172), while 280 were withdrawn from the market (from 273). 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 490 pending sales (from 370). In the $300K-500K range, there are 180 pendings (from 178). In the $500K-$1M range, we have 52 (from 41). In the $1-2M range, we have 17 pendings (from 16), while in the $2M plus range, there is one. The grand total? 740 pendings (from 605). Of all pendings, 205 are short sales.
270 homes closed in October, 247 in November, 253 in December, 195 in January, 220 in February, 250 in March, and 340 closed in April. Compare this to 423 from April, 2007. Sales are off 24%.
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.
Data source: NNRMLS April 2008
ZIP Codes: 89511, 89523, 89521, 89433, 89436, 89502, 89503, 89506, 89509
For More Information:
View Market Conditions of other areas served by Diane Cohn
Navigate: Top > Nevada > Reno
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.
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