Reno/Sparks Association of REALTORS® · February 2015 Market Report Area 100, Greater Reno/Sparks This report is designed to assist REALTORS® in analyzing current market conditions

Database Analysis Excellence

Proprietary

Reno/Sparks Association of REALTORS®

February 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®.

Febru

ary

, 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 March 8h, 2015.

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mailto:[email protected]

Febru

ary

, 2015






Market Report Commentary

Summary– “Homeowners have historically remained in their homes an average of six to seven years,

however in 2014, research showed that time has increased to 10 years,” said Dave Hansen, 2015 president RSAR. “This has created a lack of inventory on the market for existing-home sales. However, the National Association of REALTORS® believes 2015 could be the year some homeowners move out and move up. Many would-be sellers have stayed put because they are nervous about leaving their low interest mortgage rates. They also have been waiting for a spike in the value of their homes. Nationally home values have risen 25 percent over the past three years on average, meaning pent-up sellers are in a better position to put their place on the market. Locally, we have seen a faster recovery in home values.”

Median Sales Price– February 2015 median price was up 5.2% to $265,000 compared to $252,000 in January 2015

and up 13.5% compared to $233,500 in February 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– February, 2015 median price on properties with no special conditions was up 1.9% to $274,995

compared to $270,000 in January, 2015 and up 9.0% compared to $252,365 in February, 2014.

– February, 2015 median price on REO (Bank Owned) properties was down -7.6% to $185,750 compared to $201,000 in January, 2015 and up 16.1% compared to $160,000 in February, 2014.

– February, 2015 median price on short sales properties was up 29.9% to $252,600 compared to $194,500 in January, 2015 and up 48.6% compared to $170,000 in February, 2014.

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Febru

ary

, 2015






Market Report Commentary, continued

Number of Units Sold– February, 2015 units sold was up 5.5% to 383 compared to 363 in January, 2015 and down -

1.3% compared to 388 in February 2014.

Average Days on Market– February, 2015 average Days On Market was down -13% to 109 compared to 126 in January,

2015 and down -5% compared to 115 in February 2014.

Days on Market (DOM) by Special Conditions– Short sale properties had an average days on market of 280.

– Properties with no special conditions had an average days on market of 96.

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

New Listings– February, 2015 new listings was up 17.6% to 509 compared to 433 in January, 2015 and down -

8.8% compared to 558 in February 2014.

– Properties listed at under $250,000 made up 36% of new listings entering the market during the month of February, 2015.

– 12% of new February, 2015 listings were distressed. Short sales 4%; REO 6%; No special conditions 88%; and Other 2%.

Distressed New Listings History– The allocation of new listings by special conditions decreased, representing 10% of the market

in February 2015, down from 13% in January 2015, and down from 20% in February 2014.

Status of Pending– Active/Pending-Loan represent 37.6% of the total active pendings; Active/Pending-Short Sale

equals 17.9%; Pending-No Show represents 27.5%; Active/Pending-Call 13.0%; and Active/Pending-House 4.1%.

Current Months Supply of Inventory (Unsold Inventory over Sales per Month)– At the end of February, 2015, there was 3.6 months of unsold inventory based on the monthly

sales rate.

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ary

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Historical Months Supply of Inventory– February, 2015 MSI was down to 3.6 compared to 4.1 in January, 2015 and down from 5.0 in February, 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: $500,000 to $750,000.

– Price Bands in a Buyer's Market are: 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.

– 42% of the total sales for February, 2015 were in the under $250,000 price range.

Units and Absorption by Area Group– Area Groups in a Balance Market are: Metro Southwest.

– Area Groups in a Buyer's Market are: Suburban Southwest, VC Highlands, Washoe Valley, West Suburban.

– Area Groups in a Seller's Market are: New Southeast, North Valleys, Northwest, Old Southeast, Spanish Springs, Sparks.

– Suburban Southwest had the highest level of active inventory with 145 active listings.

– Spanish Springs had the highest level of pending sales with 199 pendings.

– Spanish Springs had the highest level of closed sales with 86 closed sales.

Units and Absorption by Condition– The Months Supply of Inventory in the category of Real Estate Owned is at a 2.8 MSI in February, 2015.

– No Special Conditions condition properties has 3.3 MSI, Short Sale properties has 7.8 MSI, and Yes-Other has 0.0 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.

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Febru

ary

, 2015







Conclusion– The February 2015 median price was up 5.2% to $265,000, and up 14% compared to

February 2014. Since the bottom of the market in January 2012, values have risen 96%. From the peak of the market in January 2006, values are off 27.4%.

– February unit sales at 383 are up 6% from January and down 1.3% from February 2014. The February increase in sales follows the trend we have seen seven of the past eight years - although the number of sales February over January have been shrinking the last three years.

– It’s interesting to note that 75% of new listings taken in January are currently either sold or have a pending sale. A sign to potential buyers that properties are not remaining on the market long, and a sign to sellers, that homes priced right are moving quickly. February days on market was 109 and historically declines through Spring and Summer.

– February new pending sales, a leading indicator of closed transaction, are up 6% from January 2015.

– The Reno market has remained consistently in a seller’s market for 26 of the past 28 months.

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

– For those sellers who have equity as a result of the increase in property values and are ready to relocate, move up or down-size, the time may be right to talk to a REALTOR®.

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


Febru

ary

, 2015






7

Median Sales Price

$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

$2

65

,00

0

$150,000

$170,000

$190,000

$210,000

$230,000

$250,000

$270,000

$290,000

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

Closing Month

Median Sales Price, 13 months

Time Period Change

Prior Month 5.2%

Prior Year 13.5%


Febru

ary

, 2015






8

Summary: Median Sales Price

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

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

Closing Month

Median Sales Price, 8 years


Febru

ary

, 2015






Price per Square Foot

9

$145

$80

$90

$100

$110

$120

$130

$140

$150

Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15

Sold Dollars per Square Foot, 5 year History


Febru

ary

, 2015






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


Febru

ary

, 2015






$252,365 $270,000

$274,995

$160,000

$201,000

$185,750

$170,000

$194,500

$252,600

$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 1.9% -7.6% 29.9%

Prior Year 9.0% 16.1% 48.6%


Febru

ary

, 2015






12


388

483

535

54

6 56

5

530

578

507

490

47

4

51

8

363 383

200

250

300

350

400

450

500

550

600


Closing Month

Number of Units Sold, 13 months Time Period Change

Prior Month 5.5%

Prior Year -1.3%


Febru

ary

, 2015






13


100

200

300

400

500

600

700


Closing Month

Number of Units Sold, 8 years


Febru

ary

, 2015






11

5

10

5

107

101

89

94

84

97

95

97

11

1

12

6

10

9

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 -13.1%

Prior Year -4.8%

50

70

90

110

130

150

170


Average Days on Market for Solds, 8 years


Febru

ary

, 2015






15

Days on Market, by Special Conditions

94

280

96

132

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.


Febru

ary

, 2015






558 661

684 773

720

784

666

569

523

383

288

433 509

-

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 17.6%

Prior Year -8.8%


Febru

ary

, 2015






New Listings, by Price and by Special Condition

4

17

67

95

98 1

17

37

40

34

-

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

New Listings, by Price Range

448

29

22

7

3

-

-

50

100

150

200

250

300

350

400

450

500

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.


Febru

ary

, 2015






Distressed Listings, by Price



75%

29%

18%

6% 9% 6%14%

8%3%

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

3 512

6 9 7 5 3 1112

55

89 89

110

32 37 33

0

20

40

60

80

100

120

$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


Febru

ary

, 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


Febru

ary

, 2015






20

Status of Pendings, Current Month

Active/Pending

-Loan

37.6%

Pending-No

Show

27.5%

Active/Pending

-Short Sale

17.9%

Active/Pending

-Call

13.0%

Active/Pending

-House

4.1%


Febru

ary

, 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.

554

835

383

0

100

200

300

400

500

600

700

800

900

Nu

mb

er

of

Un

its

All Areas Together

(554 + 835) available / 383 units sold = 3.6 months of inventory

Active Available EOM

Active Pending EOM

Sold during month


Febru

ary

, 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.



5.4.1

3.6

2

3

4

5

6

7

8

9

10

11Fe

b-1

0

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

Jun

-14

Aug

-14

Oct

-14

De

c-14

Feb

-15

Month's Supply of Inventory, 5 year history


Febru

ary

, 2015






Units and Absorption, by Price

“Active” includes “Active/Pending”



1 9 20

30

52

108

56

93

185

14 4

3

144

179

157

162

55

50

31

4 18

61

79 83 85

27

22

4

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 month3.8

2.9

2.7

2.6

2.5

3.2

4.1

6.5

54.0

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

Over $750,000

Mo

nth

s o

f In

ven

tory

Absorption by Price

23


Febru

ary

, 2015






Reno/Sparks Area Map

24


Febru

ary

, 2015






Units and Absorption, by Area Group

101

35

49

32

10 6

9

28

145

14

28

42

85

62

136

106

27

199

94

59

20

14

33

36

46 64

47

29

86

37

22

2

4

10

-

50

100

150

200

250

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

5.2

2.1

2.9

2.9

1.3

3.1

3.3

9.3

17.5

10.5

7.6

0

2

4

6

8

10

12

14

16

18

20

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


Febru

ary

, 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”



501

21 20 2

566

52

191

1

322

26 27 00

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

3.3

2.8

7.8

0

1

2

3

4

5

6

7

8

9

None REO Short Sale Yes-Other

Mo

nth

s o

f In

ven

tory

Absorption by Condition

26


Febru

ary

, 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

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

Jun

-14

Aug

-14

Oct

-14

De

c-14

Feb

-15


Febru

ary

, 2015






Housing Affordability Index, detail

28

50

62

100

84 87

72

86

45

80

52

42

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



Documents

Reno/Sparks Association of REALTORS® · February 2015 Market Report Area 100, Greater Reno/Sparks This report is designed to assist REALTORS® in analyzing current market conditions