Reno/Sparks Association of REALTORS® · to climb to approximately 5% by year end. – In 2015, the...

Database Analysis Excellence

Proprietary

Reno/Sparks Association of REALTORS®

January 2015

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®.

January

, 2015

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 February 8h, 2015.

2

mailto:[email protected]

January

, 2015






Market Report Commentary

Summary– “The improving job market in the Truckee Meadows and surrounding areas has consumers

feeling more confident, and the rebound in home prices is building household wealth for homeowners giving them the ability to sell after waiting out the recession,” said Dave Hansen, 2015 president of Reno/Sparks Association of REALTORS®. “This is good and bad news. The good news is that some sellers may see this as an opportunity to sell, which will help increase inventory levels. However, for buyers, this increase in prices impacts affordability, especially with first-time home buyers.”

Median Sales Price– January 2015 median price was down -3.8% to $252,000 compared to $261,995 in December

2014 and up 14.5% compared to $220,000 in January 2014.

– 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– January, 2015 median price on properties with no special conditions was down -1.4% to

$270,500 compared to $274,450 in December, 2014 and up 15.1% compared to $235,000 in January, 2014.

– January, 2015 median price on REO (Bank Owned) properties was down -5.0% to $200,500 compared to $211,000 in December, 2014 and up 22.6% compared to $163,500 in January, 2014.

– January, 2015 median price on short sales properties was down -7.4% to $194,500 compared to $210,000 in December, 2014 and up 17.1% compared to $166,050 in January, 2014.

Number of Units Sold– January, 2015 units sold was down -30.7% to 359 compared to 518 in December, 2014 and up

1.4% compared to 354 in January 2014.

3


January

, 2015






Market Report Commentary, continued

Average Days on Market– January, 2015 average Days On Market was up 14% to 126 compared to 111 in

December, 2014 and up 10% compared to 115 in January 2014.

Days on Market (DOM) by Special Conditions– Short sale properties had an average days on market of 271.

– Properties with no special conditions had an average days on market of 107.

– REO Properties had an average days on market of 94.

New Listings– January, 2015 new listings was up 49.3% to 430 compared to 288 in December, 2014 and

down -16.7% compared to 516 in January 2014.

– Properties listed at under $250,000 made up 44% of new listings entering the market during the month of January, 2015.

– 16% of new January, 2015 listings were distressed. Short sales 6%; REO 7%; No special conditions 84%; and Other 3%.

Distressed New Listings History– The allocation of new listings by special conditions decreased, representing 13% of the

market in January 2015, down from 14% in December 2014, and down from 22% in January 2014.

Status of Pending– Active/Pending-Loan represent 34.5% of the total active pendings; Active/Pending-Short

Sale equals 22.1%; Pending-No Show represents 26.7%; Active/Pending-Call 12.7%; and Active/Pending-House 4.0%.

Current Months Supply of Inventory (Unsold Inventory over Sales per Month)– At the end of January, 2015, there was 3.8 months of unsold inventory based on the

monthly sales rate.

4


January

, 2015







Historical Months Supply of Inventory– January, 2015 MSI was up to 3.8 compared to 2.9 in December, 2014 and down from 5.3 in January, 2014.

– 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: None.

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

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

– 48% of the total sales for January, 2015 were in the under $250,000 price range.

Units and Absorption by Area Group– Area Groups in a Balance Market are: West Suburban.

– Area Groups in a Buyer's Market are: Suburban Southwest.

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

– Suburban Southwest had the highest level of active inventory with 141 active listings.

– Spanish Springs had the highest level of pending sales with 146 pendings.

– Spanish Springs had the highest level of closed sales with 66 closed sales.

Units and Absorption by Condition– The Months Supply of Inventory in the category of Real Estate Owned is at a 3.1 MSI in January, 2015.

– No Special Conditions condition properties has 3.5 MSI, Short Sale properties has 6.2 MSI, and Yes-Other has 2.0 MSI.

Affordability Index– 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 100would 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


January

, 2015







Conclusion– The January 2015 median price was down 4% to $252,000, and up 14.5% compared to

January 2014. The decline in the January median sales price follows the trend we have seen for past seven Januarys.

– January unit sales at 359 are down 31% from December 2014 and up 1.4% from January 2014. The month-over month drop in sales follows the typical seasonal trend.

– New pending sales, a leading indicator of closed transaction, are up 14% from December 2014.

– New listings in January bounced back to 430, up 50% from December 2014, but down 17% from January 2014. Eighty-four percent of new listings had no special conditions and are considered equity sellers, compared to 76% in January 2014.

– The Reno market has remained consistently in a seller’s market for 25 of the past 27 months.

– Interest rates are expected to remain at historical lows until mid-year. They are predicted to climb to approximately 5% by year end.

– In 2015, the median price is expected to increase at a rate of 5-6%. This is down from the double-digit increases we saw in median price the past few years.

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

6


January

, 2015






7

Median Sales Price

$2

20

,00

0

$2

33

,50

0

$2

27

,99

9

$2

30

,00

0

$2

40

,00

0

$2

50

,00

0

$2

49

,95

0

$2

50

,00

0

$2

39

,00

0

$2

60

,00

0

$2

60

,00

0

$2

61

,99

5

$2

52

,00

0

$150,000

$170,000

$190,000

$210,000

$230,000

$250,000

$270,000

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15

Closing Month

Median Sales Price, 13 months

Time Period Change

Prior Month -3.8%

Prior Year 14.5%


January

, 2015






8

Summary: Median Sales Price

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15

Closing Month

Median Sales Price, 8 years


January

, 2015






Price per Square Foot

9

$144

$80

$90

$100

$110

$120

$130

$140

$150

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15

Sold Dollars per Square Foot, 5 year History


January

, 2015






10

Annualized Median Price by Area Group

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

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


January

, 2015






$235,000

$274,450 $270,500

$163,500

$211,000

$200,500

$166,050

$210,000 $194,500

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

$260,000

$280,000

$300,000

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 -1.4% -5.0% -7.4%

Prior Year 15.1% 22.6% 17.1%


January

, 2015






12


35

4

388

483

535

54

6 56

5

530

578

508

490

47

3

51

8

359

200

250

300

350

400

450

500

550

600


Closing Month

Number of Units Sold, 13 months

Time Period Change

Prior Month -30.7%

Prior Year 1.4%


January

, 2015






13


100

200

300

400

500

600

700


Closing Month

Number of Units Sold, 8 years


January

, 2015






11

5

11

5

10

5

107

101

89

94

84

97

95

97

11

1

12

6

70

80

90

100

110

120

130


Average Days on Market for Solds, 13 months

Days on Market, by Month

14

Time Period Change

Prior Month 13.6%

Prior Year 10.0%

50

70

90

110

130

150

170


Average Days on Market for Solds, 8 years


January

, 2015






15

Days on Market, by Special Conditions

94

271

107

213

0

50

100

150

200

250

300

350


Days o

n M

ark

et

Closing Month

Average DOM, 13 Months

REO

Short

None

Other


owns more for the property than current value.


January

, 2015






516

558 661

684 773

720

785

666

569

523

383

288

430

-

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


New Listings by Month, 5 years

Time Period Change

Prior Month 49.3%

Prior Year -16.7%


January

, 2015






New Listings, by Price and by Special Condition

2 21

75

92

74 81

32

28

25

-

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

New Listings, by Price Range

363

31

25

6

5

-

-

50

100

150

200

250

300

350

400

None REO Short Sale 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.


January

, 2015






Distressed Listings, by Price



0%

33%31%

15%

5% 5%3% 4%

8%

0%

20%

40%

$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

07

2314

4 4 1 1 22

14

52

7870

77

3127

23

0

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

Over $750,000

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

Distressed

Non-Distressed

18


January

, 2015






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


January

, 2015






20

Status of Pendings, Current Month

Active/Pending

-Loan

34.5%

Pending-No

Show

26.7%

Active/Pending

-Short Sale

22.1%

Active/Pending

-Call

12.7%

Active/Pending

-House

4.0%


January

, 2015






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.

625

732

359

0

100

200

300

400

500

600

700

800

Nu

mb

er

of

Un

its

All Areas Together

(625 + 732) available / 359 units sold = 3.8 months of inventory

Active Available EOM

Active Pending EOM

Sold during month


January

, 2015






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.



5.3

2.93.8

2

3

4

5

6

7

8

9

10

11Ja

n-1

0

Mar

-10

May

-10

Jul-

10

Sep

-10

No

v-1

0

Jan

-11

Mar

-11

May

-11

Jul-

11

Sep

-11

No

v-1

1

Jan

-12

Mar

-12

May

-12

Jul-

12

Sep

-12

No

v-1

2

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Jan

-14

Mar

-14

May

-14

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Month's Supply of Inventory, 5 year history


January

, 2015






Units and Absorption, by Price

“Active” includes “Active/Pending”



3 15

34

51 6

3

132

61

96

170

13

52

137 1

54

136

125

53

39

23

8 17

60

87

64 70

23

16

14

0

100

200

$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 month2.0 3

.9

2.9

2.4 3.1 3.7

5.0

8.4

13.8

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


January

, 2015






Reno/Sparks Area Map

24


January

, 2015






Units and Absorption, by Area Group

119

39

63

37

6

104

39

141

13

30

33

66

66

122

109

36

146

88

48

13

14

24

50

30

49

42

24

66

47

23

8

9

11

-

20

40

60

80

100

120

140

160

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

3.7

3.5 3.8

3.5

1.8

3.8

2.7

8.2

3.4

4.9 5.2

0

1

2

3

4

5

6

7

8

9

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


January

, 2015






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”



556

28 27 3

466

41

204

1

290

22 37 20

100

200

300

400

500

600

None REO Short Sale Yes-Other

Active and Sold Homes by Condition, current month

Active at EOM

Pending at EOM

Closed in Month

3.5

3.1

6.2

2.0

0

1

2

3

4

5

6

7

None REO Short Sale Yes-Other

Mo

nth

s o

f In

ven

tory

Absorption by Condition

26


January

, 2015






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.

70

80

90

100

110

120

130

140

150

160

Jan

-10

Mar

-10

May

-10

Jul-

10

Sep

-10

No

v-1

0

Jan

-11

Mar

-11

May

-11

Jul-

11

Sep

-11

No

v-1

1

Jan

-12

Mar

-12

May

-12

Jul-

12

Sep

-12

No

v-1

2

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Jan

-14

Mar

-14

May

-14

Jul-

14

Sep

-14

No

v-1

4

Jan

-15


January

, 2015






Housing Affordability Index, detail

28

60 64

10091

96

72

101

34

6761

56

20

30

40

50

60

70

80

90

100

110

MetroSouthwest

NewSoutheast

NorthValleys

Northwest OldSoutheast

SpanishSprings

Sparks SuburbanSouthwest

VCHighlands

WashoeValley

WestSuburban

75

77

79

81

83

85

87

89

91



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