Reno/Sparks Association of REALTORS®€¦ · Reno/Sparks Association of REALTORS® April, 2014...

Database Analysis Excellence

Proprietary

Reno/Sparks Association of REALTORS®

April, 2014

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®.

April, 2

014

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

Housing Affordability Index

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 May 5th, 2014.

2

mailto:[email protected]

April, 2

014






Market Report Commentary

Summary– “The acceleration in median price has slowed in comparison to the rapid increase in median price that we saw in

2012 and early 2013,” said Mark Ashworth, 2014 president of the Reno/Sparks Association of REALTORS. “However, the major problem in the market continues to be low inventory of available homes. Buyer demand and low inventory keeps it a seller’s market. For example, Reno has only 3.5 month’s supply of inventory, the lowest level in history. Despite this, it’s still a great time to buy.”

Median Sales Price– April 2014 median price was up 0.9% to $230,000 compared to $227,999 in March 2014 and up 12.2% compared

to $205,000 in April 2013.

– 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– April, 2014 median price on properties with no special conditions was up 1.0% to $242,000 compared to $239,500

in March, 2014 and up 10.0% compared to $220,000 in April, 2013.

– April, 2014 median price on REO (Bank Owned) properties was down -9.9% to $196,000 compared to $217,500 in March, 2014 and up 12.0% compared to $175,000 in April, 2013.

– April, 2014 median price on short sales properties was up 2.4% to $190,000 compared to $185,500 in March, 2014 and up 12.0% compared to $169,700 in April, 2013.

Number of Units Sold– April, 2014 units sold was up 6.1% to 508 compared to 479 in March, 2014 and up 5.2% compared to 483 in April

2013.

Average Days on Market– April, 2014 average days on market was up 0.7% to 106 compared to 105 in March, 2014 and down -20.3%

compared to 133 in April 2013.

3


April, 2

014






Market Report Commentary, continued

Days on Market (DOM) by Special Conditions– Short sale properties had an average days on market of 235.

– Properties with no special conditions had an average days on market of 83.

– REO Properties had an average days on market of 83.

New Listings– April, 2014 new listings was up 1.7% to 662 compared to 651 in March, 2014 and

down -2.6% compared to 680 in April 2013.

– Properties listed at under $250,000 made up 44% of new listings entering the market during the month of April, 2014.

– 13% of new April, 2014 listings were distressed. Short sales 7%; REO 5%; No special conditions 87%; and Other 1%.

Distressed New Listings History– The allocation of new listings by special conditions decreased, representing 12% of

the market in April 2014, down from 14% in March 2014, and 27% in April 2013.

Status of Pending– Pending-No Show represent 30.7% of the total active pendings; Active/Pending-

Loan equals 28.2%; Active/Pending-Short Sale represents 29.5%; Active/Pending-Call 10.0%; and Active/Pending-House 1.6%.

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

– At the end of April, 2014, there was 3.5 months of unsold inventory based on the monthly sales rate.

4


April, 2

014







Historical Months Supply of Inventory– April, 2014 MSI was down to 3.5 compared to 3.9 in March, 2014 and down from 4.3 in April, 2013.

– 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 Band– Price Bands in a Balance Market are: $1 to $100,000,

– Price Bands in a Buyer's Market are: $500,000 to $750,000, Over $750,000,

– Price Bands in a Seller's Market are: $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,

– 57% of the total sales for April, 2014 were in the under $250,000 price range.

Units and Absorption by Area Group– Area Groups in a Balance Market are: Suburban Southwest, VC Highlands.

– Area Groups in a Buyer's Market are: none

– Area Groups in a Seller's Market are: Metro Southwest, New Southeast, North Valleys, Northwest, Old Southeast, Spanish Springs, Sparks, Washoe Valley, West Suburban.

– Suburban Southwest had the highest level of active inventory with 163 active listings.

– North Valleys had the highest level of pending sales with 164 pendings.

– North Valleys had the highest level of closed sales with 104 closed sales.

Units and Absorption by Condition– The Months Supply of Inventory in the category of Real Estate Owned is at a 2.5 MSI in April, 2014.

– No Special Conditions condition properties has 3.1 MSI, Short Sale properties has 5.5 MSI, and Yes-Other has 0.0 MSI.

Affordability Index, New Report– The chart applies several factors to arrive at a Housing Affordability Index - the median price, Washoe County median income,

5% down payment, the applicable interest rate for a 30 year fixed mortgage and a debt to income ratio of 28%. A value of 100 on the index means that a buyer with the Washoe County median income has adequate income to qualify for a mortgage on a median priced home. You can see that in January 2012, the market was at it’s most affordable, when median price hit a low. With the recent increase in median price and interest rates, the median priced home is less affordable for the Washoe County median income earner.

– The 13 month detail applies the same factors identified above to the past thirteen months. An area with a factor of over 100 would be considered most affordable to the median income earner.

– The index shows at today’s median price the most affordable areas are North Valleys, Old Southeast and Sparks.

5


April, 2

014







Conclusion– The acceleration in median price has slowed in comparison to the rapid increase in

median price that occurred in 2012 and early 2013.

– April’s unit sales were the 5th highest for an April in history.

– April pending sales were down 8% with 384 compared to 417 in March 2014. Pendingsare a leading indicator of future closed transactions.

– Based upon the Affordability index, which considers median income, down payment, debt to income ratio and current interest rates, the most affordable areas in today’s market are North Valleys, Old Southeast and Sparks.

– The major problem in the market continues to be low inventories of available homes. Buyer demand and low inventory keep the Reno and Fernley areas in a Seller’s market. Reno has 3.5 Month’s Supply of Inventory, the lowest level in history.

– According to the Realtors® Confidence Index, 35 percent of recent mortgages were made with a down payment of 20 percent or more. Moreover, Realtors® reported that because of tight underwriting standards, buyers who pay cash or put down large down payments generally win against those with lower down payments.

– With lending restrictions tighter it may make it difficult for some buyers to enter the market, it’s more important than ever to have finances in order and enough money saved for a down payment. For first-time buyers the most common sources of a down payment are savings and gifts from a relative or friend. Many factors like rising rents and debt make it difficult for consumers to save up for a down payment.

– For those sellers with equity and a willingness to price their home competitively, particularly at the entry level of the market, there is still buyer demand and it’s an excellent time to sell.

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®.

6


http://www.realtor.org/reports/realtors-confidence-index

http://www.realtor.org/reports/highlights-from-the-2013-profile-of-home-buyers-and-sellers

April, 2

014






7

Median Sales Price

$2

05

,00

0

$2

18

,00

0

$2

25

,00

0

$2

15

,50

0

$2

20

,00

0

$2

24

,90

0

$2

14

,87

5

$2

24

,90

0

$2

31

,00

0

$2

20

,00

0

$2

35

,00

0

$2

27

,99

9

$2

30

,00

0

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

$260,000

Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14

Closing Month

Median Sales Price, 13 months

Time Period Change

Prior Month 0.9%

Prior Year 12.2%


April, 2

014






8

Summary: Median Sales Price

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14

Closing Month

Median Sales Price, 8 years


April, 2

014






Price per Square Foot

9

$136

$80

$90

$100

$110

$120

$130

$140

Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14

Sold Dollars per Square Foot, 5 year History


April, 2

014






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


April, 2

014






$220,000

$239,500 $242,000

$175,000

$217,500

$196,000

$169,700

$185,500

$190,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

$260,000

$280,000

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 1.0% -9.9% 2.4%

Prior Year 10.0% 12.0% 12.0%


April, 2

014






12


483

541

531

591

638

513 5

38

47

7

492

35

2

387

479

508

300

350

400

450

500

550

600

650

700


Closing Month

Number of Units Sold, 13 months

Time Period Change

Prior Month 6.1%

Prior Year 5.2%


April, 2

014






13


100

200

300

400

500

600

700


Closing Month

Number of Units Sold, 8 years


April, 2

014






13

3

109

94

95

98

10

6

96

10

4 11

0

115

11

5

10

5

10

6

80

90

100

110

120

130

140


Average Days on Market for Solds, 13 months

Days on Market, by Month

14

Time Period Change

Prior Month 0.7%

Prior Year -20.3%

50

70

90

110

130

150

170


Average Days on Market for Solds, 8 years


April, 2

014






15

Days on Market, by Special Conditions

83

235

83

84

0

50

100

150

200

250

300


Days o

n M

ark

et

Closing Month

Average DOM, 13 Months

REO

Short

None

Other


owns more for the property than current value.


April, 2

014






680 771

747

674

730

598

642

483

284

514

557 651

662

-

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 1.7%

Prior Year -2.6%


April, 2

014






New Listings, by Price and by Special Condition

16

37

105

134

114

126

47

45

38

-

20

40

60

80

100

120

140

160

$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

573

46

34

5

2

-

100

200

300

400

500

600

700

None Short Sale REO Relocation Subject to Court

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.


April, 2

014






Distressed Listings, by Price



69%

32%

13% 12% 11%6% 4% 7%

11%

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

11 12 14 16 12 82 3 45

25

91

118

102

118

45 4234

0

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

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

Distressed

Non-Distressed

18


April, 2

014






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%

Pe

rce

nta

ge

of

Lis

ting

s

Listing Month

New Listings by Special Conditions

None

Other

Short

REO


April, 2

014






20

Status of Pendings, Current Month

Pending-No

Show

30.7%

Active/Pending

-Short Sale

29.5%

Active/Pending

-Loan

28.2%

Active/Pending

-Call

10.0%

Active/Pending

-House

1.6%


April, 2

014






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.

877 882

508

0

100

200

300

400

500

600

700

800

900

1000

Nu

mb

er

of

Un

its

All Areas Together

(877 + 882) available / 508 units sold = 3.5 months of inventory

Active Available EOM

Active Pending EOM

Sold during month


April, 2

014






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.



4.3

3.9

3.5

2

3

4

5

6

7

8

9

10

11A

pr-0

9

Jun

-09

Aug

-09

Oct

-09

De

c-09

Feb

-10

Apr

-10

Jun

-10

Aug

-10

Oct

-10

De

c-10

Feb

-11

Apr

-11

Jun

-11

Aug

-11

Oct

-11

De

c-11

Feb

-12

Apr

-12

Jun

-12

Aug

-12

Oct

-12

De

c-12

Feb

-13

Apr

-13

Jun

-13

Aug

-13

Oct

-13

De

c-13

Feb

-14

Apr

-14

Month's Supply of Inventory, 5 year history


April, 2

014






Units and Absorption, by Price

“Active” includes “Active/Pending”



4 15

52

120

122

202

80 89

193

65

117

176

159

132

108

49

53

23

13

51

126

102

79

64

38

19

16

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 month5.3

2.6

1.8

2.7 3.2

4.8

3.4

7.5

13.5

0

2

4

6

8

10

12

14

16

$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

ven

tory

Absorption by Price

23


April, 2

014






Reno/Sparks Area Map

24


April, 2

014






Units and Absorption, by Area Group

141

90

82

63

30

158

58

163

22

27 43

85

64

164

128

52

156

104

56

16

16 41 49

36

104

62

26

94

66

33

6

10

22

-

20

40

60

80

100

120

140

160

180

Me

tro

So

uth

we

st

Ne

wS

outh

east

No

rth

Va

lleys

No

rth

west

Old

So

uth

east

Sp

an

ish

Sp

rin

gs

Sp

ark

s

Su

bu

rba

nS

outh

we

st

VC

Hig

hla

nds

Wa

sho

eV

alle

y

We

st

Su

bu

rba

n

Inventory and Units Sold, by Area Group

Active at EOMPending at EOMClosed in Month

4.6

4.3

2.4

3.1 3.2 3.3

2.5

6.6

6.5

4.3

3.8

0

1

2

3

4

5

6

7

Me

tro

Sou

thw

est

New

Sou

thea

st

Nort

h

Valle

ys

Nort

hw

est

Old

Sou

thea

st

Spa

nis

h

Spri

ng

s

Spa

rks

Sub

urb

an

Sou

thw

est

VC

Hig

hla

nd

s

Washo

e

Valle

y

West

Sub

urb

an

Mo

nth

s o

f In

ven

tory

Absorption by Area Group

25


April, 2

014






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”



767

37 53 4

470

35

362

2

399

29 76 00

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

3.1

2.5

5.5

0

1

2

3

4

5

6

None REO Short Sale Yes-Other

Mo

nth

s o

f In

ven

tory

Absorption by Condition

26


April, 2

014






Housing Affordability Index, 5 years

27

The Housing Affordability Index (HAI) as defined by the National Association of Realtors (NAR). A value of 100 means that a purchaser with the median income

has exactly enough income to qualify for a mortgage on a median-priced home. An index of 120 signifies that a purchaser earning the median income has 20%

more income to qualify for a mortgage loan on a median-priced home. An index of 85 signifies that a purchaser has 85% the income required to purchase a

median-priced home. The calculation uses the Washoe County median income, a down payment of 5 percent ,and a qualifying ratio of 28 percent.

80

90

100

110

120

130

140

150

160

Apr

-09

Jun

-09

Aug

-09

Oct

-09

De

c-09

Feb

-10

Apr

-10

Jun

-10

Aug

-10

Oct

-10

De

c-10

Feb

-11

Apr

-11

Jun

-11

Aug

-11

Oct

-11

De

c-11

Feb

-12

Apr

-12

Jun

-12

Aug

-12

Oct

-12

De

c-12

Feb

-13

Apr

-13

Jun

-13

Aug

-13

Oct

-13

De

c-13

Feb

-14

Apr

-14


April, 2

014






Housing Affordability Index, detail

28

56

72

112

85

111

77

111

35

7064

59

20

30

40

50

60

70

80

90

100

110

120

MetroSouthwest

NewSoutheast

NorthValleys

Northwest OldSoutheast

SpanishSprings

Sparks SuburbanSouthwest

VCHighlands

WashoeValley

WestSuburban

80

85

90

95

100

105



Reno/Sparks Association of REALTORS®€¦ · Reno/Sparks Association of REALTORS® April, 2014...

Documents

Transcript of Reno/Sparks Association of REALTORS®€¦ · Reno/Sparks Association of REALTORS® April, 2014...