Dickson Realty Luxury Trends Market Report Reno/Sparks Q2 2016

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.

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