Dickson Realty Market Trends Newsletter - Reno/Sparks - Q3 2017

Market Trends Q3 2017 Market Report for the Reno/Sparks Region

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3rd Quarter Median Sales Median SalesPrice Price &and Average Sold Price per Square Foot Average Sold Price per Sq Ft

SPANISH SPRINGS

NORTH VALLEYS

SINGLE FAMILY

SINGLE FAMILY

CONDO

Median Sales $$ Median Sales $$ Year to year change +  Year to year change + � � Average Price/SF

Average Price/SF

CONDO

Median Sales $$ Median Sales $$ Year to year change + �� Year to year change -3.64 Average Price/SF

Average Price/SF

NORTH URBAN

SINGLE FAMILY

CONDO

Median Sales $$ Median Sales $$ Year to year change + ƒ � ƒ Year to year change +28.59% Average Price/SF

Average Price/SF

NEW NORTHWEST

SPARKS

SINGLE FAMILY

CONDO

Median Sales $$ Year to year change + Â?Â

Median Sales $$ Year to year change +13.91%

Average Price/SF

Average Price/SF

SINGLE FAMILY

CONDO

Median Sales $$ Median Sales $$ Year to year change ‹Œ Â?Â? Year to year change ‹ ƒ Â?Â?Â

Average Price/SF

Average Price/SF

OLD SOUTHEAST

SINGLE FAMILY

CONDO

Median Sales $$ Median Sales $$

Year to year change -ƒ  Year to year change ‹ �  Average Price/SF Average Price/SF

OLD SOUTHWEST

SINGLE FAMILY

CONDO

Median Sales $$ Median Sales $$ Year to year change + � Year to year change +Š  Average Price/SF

Average Price/SF

NEW SOUTHEAST

SINGLE FAMILY

SINGLE FAMILY

CONDO

Median Sales $$ Median Sales $$ Year to year change +19.31% Year to year change ‹ ŠŠ Average Price/SF

Average Price/SF

Source: Northern Nevada Multiple Listing Service (NNRMLS)

CONDO

Median Sales $$ Median Sales $$ Year to year change ‹� �ƒ Year to year change ‹ ŒŠ Average Price/SF

NEW SOUTHWEST

Average Price/SF

Reno-Sparks Market Update Market activity in the Reno/Sparks area for Single Family homes should begin to cool off in the last quarter of the year, which is the typical seasonal trend. However, the continued strong demand and constrained inventory of affordable homes to purchase continues to drive a Seller’s market in many price ranges and neighborhoods. Let’s take a look at the details.

There were 1,820 homes available at the end of September. This is a decrease of 6.8% when compared to August, and down a staggering 25% when compared to this time last year. Next, we will look at the number of units sold.

Reno/Sparks area REALTORS sold 587 single family homes in September, which was a decrease of 18.2% compared to August.

Despite this significant monthly decrease, the year over year sales were only down 7.3% showing that the market is starting to follow the typical trend as we head into the fall season. This is not a demand issue, but rather an inventory issue resulting in fewer homes sold. Until more homes appear on the market, the limited inventory will continue to affect the number of sales.

So, let’s take a look at how the demand and sales activity impacted median price and average days on market through September.

While the median sold price for single family homes in Reno/Sparks decreased slightly from $347,854 in August to $335,000 in September, the better indicator of how the market is performing is the year over year analysis. Last September, our median price was $310,000. This year, it is $335,000, which is an increase of 8.1%.

Average Days on Market for homes sold in September decreased 4.7%, from 86 days in August to 82 days. It is normal during the peak summer months to see the average days to hover in the low to mid 80-day range, but we expect this number to increase as fall and winter come along. Last year, at this time, the Average Days on Market was 90 days. In a fast-moving market such as ours, you will want to be sure to work closely with your Dickson Realty agent and your lender to be pre-qualified before looking at homes.

Why should this information matter to you? The supply-demand equation continues to drive home prices up in the most affordable price ranges. However, the pace of price increases often depends on a specific neighborhood or area of town.

Whether you are considering a move up, across town or to downsize, now is best time to speak with a Dickson Realty agent to discuss your options.

At Dickson Realty, our professional real estate experts have the innovative tools, training and award-winning technology to stay on top of the market. That will help you buy or sell at the right price.

You can trust the experts at Dickson Realty to get you the information you need, when you need it. We’ve been assisting buyers and sellers in northern Nevada for over 40 years, and we are the number one real estate company in the Reno, Sparks and Lake Tahoe market

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WE MARKET YOUR PROPERTY TO THE WORLD. When selling your home, you need global exposure in addition to the strong marketing expertise we deliver locally. As an affiliate of Leading Real Estate Companies of the World,® we have the resources to market your property to the highest possible number of potential buyers. With 130,000 talented associates around the world, we expose your property to buyers on six continents ensuring more eyes on your property. In addition, we receive inbound clients from other affiliates around the globe who are interested in purchasing a home.

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C–Local Expertise. 05.17

Equal Housing Opportunity

Putting our Housing Challenges in Perspective I write this article as I continue to digest the news of natural disasters in many areas of our country. Seeing the images and listening to the stories, for me, puts our growing pains into perspective. Our challenges are good challenges to have!

The overall housing market is still a story of supply and demand. Simply put, we have more demand than we have supply, completely opposite of where we were from 2007-2011. How does this affect our community? We have talked endlessly regarding how the law of supply and demand has almost eliminated the distressed properties in our area.

Daily, we see the effect of supply and demand on rising home prices. The September median price for a single-family home was $335,000, down 3.7 percent from August, but up 8.1 percent from a year ago. Unit sales were down from the previous month of August, and down 7.3 percent from September of last year. Although the number of sales in September were down, we are on track to have a record year in sales in 2017.

It is obvious the Reno-Sparks housing market remains a seller’s market and will be so for some time in the future. If we speak of a “balanced market,” there would be 180 days (6 months) of inventory (the time it would take to exhaust the active inventory at the current rate of sales). The Reno/Sparks Association of Realtors reports we had 1.7 months’ supply of inventory as of the end of September. This is down 37 percent from the same time last year. When you break down the year-to-date sales and inventory by price range, a more detailed picture emerges: $300,000 and under: 45.3% of sales through September and has a 17-day supply. $300,001 – $600,000: 46.8% of sales through September and has a 55-day supply. $600,001-$900,000: 5.5% of sales through September has a 5-month supply. $900,001 – $1,500,000: 1.9% of sales through September with a 11-month supply. $1,500,001 and above: 0.5% of sales through September with a 30-month supply.

The Center for Regional Studies recently released its 2nd quarter 2017 New Residential Construction and Sales Statistics Report. There were some interesting trends to note.

In the 2nd quarter, existing single-family home sales were up almost 9 percent over the same quarter last year while new

Putting our Housing Challenges in Perspective single-family homes were down a little over 20 percent for the same time frame. The median price of a new home in June was $401,387 compared with the median price of an existing home, which was $320,000.

My advice? If you are thinking of selling your existing home and purchasing a larger (or smaller) home, do it now. I do not think you will receive more money for your existing home than in the next year or two. After that, there will be more new-home inventory, prices will stabilize and be more competitive with existing home sales, which will affect existing home pricing.

Rentals continue to be full, with a vacancy factor of only 1.17 percent and dropping, according to the Jackson Perkins Griffin 2nd quarter report. The good news with rising rental rates is that hopefully we will see remodels and improvements in older properties to be competitive with the new rental communities coming on board.

Since December 2014, we have seen an increase of just over 40,000 new jobs created, according to the EPIC report, while population and new household formation has increased 4.7 percent. However, if people cannot find a place to live, they will not move here. According to a recent article in Northern Nevada Business Weekly, EDAWN CEO Mike Kazmierski stated, “We no longer have adequate workforce for really big employers… and have adjusted our attraction efforts to focus on higher-paying jobs, which include technology companies, advanced manufacturing and company headquarters.”

For the citizens of our community to thrive and prosper – and for us to have the community we want to live in – we all have to be on the same page. We have to rethink what is the future, not the past, regarding the type of housing offered and where that housing is located. We have to be realistic about the impact on roads, schools and services like fire and police; and finally, we have to look at how we are funding these services, and make some changes in our property tax laws to start with.

While we are having growing pains now, this is a much better place for us to be than where we were in 2007 through 2011, and we are certainly in a better situation than what is happening with our friends and family in many parts of this great country.

Nancy Fennell is the president of Dickson Realty.

DOWNTOWN RENO 775.324.7000

CAUGHLIN RANCH 775.746.7000 TRUCKEE 530.587.7444

DAMONTE RANCH 775.850.7000 DONNER LAKE 530.587.4811

SOMERSETT 775.746.7222 PORTOLA 530.832.1700

MONTRÊUX 775.849.9444

SPARKS 775.685.8800

NAKOMA

530.322.3320

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© 2015-2017--- Dickson Realty. All rights reserved. Although the information above is deemed reliable, Dickson Realty does not guarantee its accuracy. If your property is currently listed for sale, this is not intended to be a solicitation.