Luxury Trends 2nd Quarter 2016 Market Report from the Market Leader
Q2 2016 DicksonLuxury.com
COVER PROPERTY FEATURED:
430 Anitra Drive, Reno NV 89511 $3,939,393 MLS #140015612
Welcome
TO OUR Q2 2016, LUXURY MARKET REPORT.
Welcome to Dickson Realty’s 2016 Luxury Newsletter for the 2nd Quarter. I received Ty Cobb’s NNN PoliticoEconomic Update of July 10, which states: “Haven’t heard this level of optimism for some time on the U.S. economy! As one expert noted, This is the golden age to be a U.S. consumer, he said, pointing to signs of a strong economy, solid jobs growth, relatively weak inflation, a strong dollar and the ability to borrow money cheaply!” All of that is true, so why did sales of luxury homes in the second quarter of 2016 go down by 10 homes from 2015, and average sold prices drop 13.5%. Even though we did see price per square foot remain steady and the average days on the market drop slightly, we still have a four year supply of homes in the luxury market priced above $1,000,000. Why do I remain optimistic in light of these facts? Dickson Realty conducted a survey of agents representing buyers in the luxury market. We received a response from 79% of them. What we found is 61% of the buyers surveyed are local buyers, moving up. I think it is a positive sign that the people already living here are feeling confident in our local economy. What we are not seeing are the senior executives or entrepreneurs moving into our region...yet! But, with EDAWN and the state of Nevada doing such a good job attracting companies to our area, I believe that will still happen. Over 92% of home buyers use the internet when searching for a new home. Dickson Realty has invested in proprietary internet based marketing systems that produce results. We are receiving remarkable web traffic from other states and areas, which is usually a fore runner of the coming wave. For more detailed information on luxury home sales please read my article in this edition of Luxury Trends, or visit www.DicksonRealty.com/LuxuryTrends Dickson Realty has been marketing luxury homes since before most of our competitors existed in the region. With our international reach and proven track record, I hope you will consider a Dickson Realty agent to help you buy or sell your luxury home.
—CEO Dickson Realty
January - June 2016 vs. 2015 Luxury Home Averages sales over $1 million*
-10
-13.5%
+.48%
-14.3%
TOTAL UNITS SOLD
AVERAGE SOLD PRICE
AVERAGE PRICE PER SF
AVERAGE DAYS ON MARKET
2016: 38 2015: 48
2016: $1,369,684 2015: $1,583,601
2016: $286.18 2015: $284.81
2016: 239 2015: 279
*Source: Northern Nevada Multiple Listing Service (NNRMLS) transaction volume for transactions over $1 million in all Reno/Sparks areas (Area 100), January 1 - June 30, 2016, as of July 6, 2016.
Top 5 Luxury Real Estate Companies
January - June 2016 Market Share for Reno/Sparks Homes Sold Over $1 Million*
DICKSON REALTY
32.29%
Ferrari-Lund 8.73% RE/MAX Affiliates 8.60% DoMore R.E. Drakulich 8.41% RE/MAX Professionals 4.58%
Active Listings over $1 Million $2,500,000 and higher
17%
$1,000,000– $1,499,999
43%
$2,000,000– $2,499,999
YTD Sold over $1 Million $2,000,000– $2,499,999
$2,500,000 and higher
5%
3%
14%
$1,500,000– $1,999,999
$1,500,000– $1,999,999
24%
$1,000,000– $1,499,999
68%
26% $1,000,000– 71 Active Listings $1,499,999 $1,239,087 Average Price
$1,000,000– 26 Sold Listings $1,499,999 $1,157,230 Average Price
$1,500,000– 42 Active Listings $1,999,999 $1,718,390 Average Price
$1,500,000– 9 Sold Listings $1,999,999 $1,612,222 Average Price
$2,000,000– 23 Active Listings $2,499,999 $2,323,990 Average Price
$2,000,000– 1 Sold Listings $2,499,999 $2,450,000 Average Price
115 Average Days On Market
192 Average Days On Market
224 Average Days On Market
$2,500,000 28 Active Listings and higher $4,030,403 Average Price
243 Average Days On Market
153 Average Days On Market
211 Average Days On Market
601 Average Days On Market
$2,500,000 and higher
2 Sold Listings $2,500,000 Average Price 1,304 Average Days On Market
*Source: Northern Nevada Multiple Listing Service (NNRMLS) transaction volume for transactions over $1 million in all Reno/Sparks areas (Area 100), January 1 - June 30, 2016, as of July 6, 2016.
Significant Dickson Realty Sales in 2016
SOLD $2,500,000
Seller Representation by Dickson Realty
SOLD $1,750,000
Seller Representation by Dickson Realty
SOLD $1,510,000
Seller & Buyer Representation by Dickson Realty
SOLD $1,328,000
Seller Representation by Dickson Realty
South Suburban
Arrowcreek
Montrêux
Arrowcreek
SOLD $2,450,000
Montrêux
Seller Representation by Dickson Realty
SOLD $1,525,000
Montrêux
Seller Representation by Dickson Realty
SOLD $1,450,000
Seller Representation by Dickson Realty
SOLD $1,285,000
St James Village
Seller & Buyer Representation by Dickson Realty
Montrêux
Significant Dickson Realty Sales in 2016
SOLD $1,250,000
Seller & Buyer Representation by Dickson Realty
SOLD $1,175,000
Seller & Buyer Representation by Dickson Realty
SOLD $1,100,000
Seller & Buyer Representation by Dickson Realty
SOLD $1,065,000
Seller Representation by Dickson Realty
SW Reno
Arrowcreek
Montrêux
Montrêux
SOLD $1,250,000
Seller Representation by Dickson Realty
SOLD $1,125,000
Seller Representation by Dickson Realty
SOLD $1,075,000
Seller Representation by Dickson Realty
SOLD $1,025,000
Seller Representation by Dickson Realty
Galena
Arrowcreek
South Suburban
SW Reno
What is Really Happening in Luxury Sales? an in-depth study of the market by Nancy Fennell, President of Dickson Realty
It was 1987 when Kathy List of Dickson Realty sold the first $1,000,000 home that had ever been sold in the area and Dickson Realty has been the luxury market leader ever since. Our local market expertise is combined with targeted global marketing campaigns and a long-standing affiliation with Luxury Portfolio International to attract affluent luxury home buyers around the world. In 2005, our area had the largest number of sales (166) over $1,000,000 and I am sure it is no surprise that in 2012 we had the lowest number of sales (25) over $1,000,000 as the market bottomed out right before the economy started turning around for the better. To the right is a graph that charts the number of sales over $1,000,000 since 1995. That brings us to 2016, when many have expected and hoped that well-compensated executives from the highly publicized companies EDAWN has brought to our region would purchase luxury homes and settle into our community. Sales in the first half of 2016 were steady but we are about 10 homes down from the number of homes we sold in the same period last year. We also see the average sold prices have dropped about 13.5% from last year, while the average price per square foot has remained fairly steady. The good news is average days on market has dropped slightly. Last year at this time there were 156 homes and condos on the market priced over $1 million. This year, we have 164 available for purchase. In 2015, there were 48 sales by the end of June and this year we have sold 38. The differences in numbers made me decide to drill down into the data to see what was different and who was purchasing these luxury homes. What I was most interested in was where our buyers were coming from. Just as we discovered in a similar study about home sales below $1,000,000 earlier this month, we found that buyers of luxury homes are not coming from out of the area. I spoke to 30 of the agents that represented the buyers of properties sold in the first half of this year. Continued on page 7...
Source: Northern Nevada Regional MLS (NNRMLS)
What is Really Happening in Luxury Sales? an in-depth study of the market by Nancy Fennell, continued..
...Continued from page 6 I would like to thank the 30 professional REALTORS® I was able to reach for sharing general information about their clients that allows us to better pinpoint who is purchasing luxury properties in our region. Where did the buyers come from?: • 61% of the buyers in the first half of the year were local (78% of these were under 50 years old) • 18% relocated from outside the area (57% of these were under 50 years old) • 21% were other or unknown The buyers who relocated to our region from another area did so to start or join a medical practice, be near family, retire in Nevada for tax purposes, or move their small business to the region. So, just like our previous study, we haven't yet felt the impact of a lot of executives or entrepreneurs moving into our region yet. In speaking with two of the most quoted firms moving businesses into our area, they do not expect to have more than 1 or 2 executives moving here to purchase homes over $1,000,000. We hope the other firms moving here have a different demographic to help us absorb the nearly four-year level of luxury home inventory. Dickson Realty has been building our international reputation in luxury home sales since before most of our competition in the area existed. I hope you will give us the opportunity to speak with you if you are thinking of selling your home or if you know someone moving into the area.
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
$4,500,000
150002576
$3,939,393
140015612
$2,800,000
160003021
$2,690,000
160005877
$2,500,000
160002314
$2,495,000
160009435
$2,495,000
160001981
$2,475,000
160005867
20203 BORDEAUX DRIVE
655 JUNIPER HILL ROAD
140 HAWKEN ROAD
440 ANITRA DRIVE
430 ANITRA DRIVE
6320 DE CHARDIN
5820 LAUSANNE DRIVE
20162 BORDEAUX DRIVE
$3,750,000
150007415
$2,675,000
150010094
$2,495,000
160000006
$2,395,000
160002452
339 ANITRA DRIVE
5850 LAUSANNE
90 HAWKEN ROAD
6105 LAKE GENEVA
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
$2,385,000
150008410
$2,298,000
160002362
$2,285,000
150015524
$2,200,000
150013612
$2,200,000
150010606
$1,995,000
140012423
160005603 10043 E DESERT CANYON DRIVE
$1,995,000
160005640
$1,990,000
140010943
$1,899,000
$1,789,000
160006978
$1,750,000
160009023
3630 LAMAY LANE
6626 GEBSER COURT
$1,995,000
6672 MASTERS DRIVE
160007701
6070 LAKE GENEVA
2125 GREENSBURG CIRCLE
5815 LAUSANNE DRIVE
14285 QUAIL SPRINGS
8999 PANORAMA
3305 MARIO ROAD
6005 LAKE GENEVA
6864 MASTERS DRIVE
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
$1,700,000
160002103
$1,695,000
150016214
$1,650,000
160006371
$1,625,000
160008318
$1,595,000
160004351
$1,595,000
$1,500,000
150009039
20588 CHANSON WAY
1080 MOUNT ROSE
4200 LONGKNIFE ROAD
15155 TIMBER CREST TRAIL
$1,695,000
160000726
$1,599,000
150005814
160005737 10398 COPPER CLOUD DRIVE
$1,550,000
160005949
$1,495,000
$1,485,000
160002711
6685 DE CHARDIN LANE
1670 GREEN ASH
2500 FARETTO LANE
150001974
6042 BREITHORN CIRCLE
20612 CHANSON WAY
5695 LAUSANNE DRIVE
6 SILVER SADDLE COURT
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
$1,450,000
160000067
$1,449,000
160002406
$1,395,000
140012641
$1,390,000
160007827
$1,375,000
160007649
$1,375,000
160004716
$1,368,000
160009360
$1,350,000
160002450
$1,350,000
160006377
$1,349,000
160005413
$1,299,000
160009664
$1,299,000
160000730
65 SHARPS CIRCLE
4260 LONGKNIFE ROAD
696 SADDLEHORN DRIVE
4460 MOUNTAINGATE DRIVE
20624 CHANSON WAY
74 BENNINGTON COURT
3800 BOULDER PATCH
5880 CARTIER
5825 STRASBOURG COURT
20685 MARGAUX ROAD
20525 LATOUR WAY
20665 PARC FORET DRIVE
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
$1,295,000
150012119
$1,265,000
160009423
$1,249,000
160008118
$1,195,950
160006511
$1,189,000
160009716
$1,179,000
160007728
$1,105,000
160003124
$1,100,000
160008359
$1,100,000
160007719
5795 CLARENS
3050 BLUE SPRUCE
4000 OLD RANCH ROAD
$1,099,000
208 N BIG SAGE
150007075
20605 PARC FORET DRIVE
243 E JEFFREY PINE ROAD
12760 SILVER WOLF ROAD
$1,085,000
3445 QUILICI ROAD
160005606
$1,070,000
1940 VIEW CREST
3405 LUNSFORD COURT
270 ABIES ROAD
12655 SILVER WOLF ROAD
160004911
$1,039,000
160005940 3640 PLUMAS STREET
CAUGHLIN RANCH 775.746.7000
DAMONTE RANCH 775.850.7000 TRUCKEE 530.587.7444
SOMERSETT 775.746.7222 DONNER LAKE 530.587.4811
MONTRÊUX 775.849.9444
SPARKS 775.685.8800
GRAEAGLE 530.836.1700
DicksonLuxury.com | luxury@dicksonrealty.com
© 2016 Dickson Realty. All rights reserved. Although the information above is deemed reliable, Dickson Realty does not guarantee its accuracy.
DOWNTOWN 775.324.7000