Sandra Mathewson\’s Blog

Summary

• 2010 was a year of leveling median sales prices and an artificial stimulus of sales as a result of government incentives as indicated by the year-over-year statistics.   Although we did not experience a slight decrease in median sales prices, December 2010 sales are the highest in recorded history.   For the past four consecutive Decembers, we have seen year-0ver-year increases in sales numbers.   We are cautiously optimistic that 2011 will be yete another year of stabilization of pricing and sales without incentives.

Reno-Sparks Homes Median Sales Price

• December 2010 median price was down 2.9% to $165,000 compared to $169,950 in November 2010.
• The median sales price has remained relatively stable for the past nineteen months.
• Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Reno-Sparks Homes Sold

• This December’s unit sales are the highest in recorded history.
• December ended the month with 471 sold transactions, up 17.8% from the prior month.
• Sales were up 10.8% over the same period last year.
• We have continued to see an increase in December year over year sales for the fourth consecutive December.

Reno-Sparks Homes Average Days on Market

• The average days on market are 143 days, up 3.4% from November 2010.

Sold-to-asking-price Ratio

• December reported sales received an average of 97.0% of the seller’s final asking price.

Reno-Sparks Homes New Listings

• 477 new listings were taken in December compared to 540 in November, an 11.7% decrease.
• The percentage of “Distressed” new listings was up 10% over the prior month.   75% of new December listings were distressed, 173 Short SAles, 168 Bank Owned/Other.
• Freddie Mac’s and HUD’s are incluced with Bank Owned/other REO properties.

Status of Pending

• Active Pending – Short Sale represents 65% of the total active pendings; Active Pending Loan equals 15%; Pending No-show represents 15%; Active Pending call 5%; and Active Pending House less than 1%.

Reno-Sparks Homes Months Supply of Inventory   (Unsold Inventory divided by Sales per Month)

• As of December 31, 2010, there was 6.3 months of unsold inventory based on the December sales rate.
• 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 in the active inventory.

Conclusion

• December’s unit sales are the highest since in recorded history.   December year-over-year sales have increased for the past four consecutive Decembers.
• December’s percentage of distressed listings reached a new high, and mirrors winter months of the prior two years.
• Month’s Supply of Inventory (MSI) or absorption moved back into the balanced range.   A closer look at absorption show that properties over $500,000 have over 10 month’s supply of inventory.   This excess inventory in the high-end price range impacts the overall month’s supply of inventory.   The under $400,00 market range moved to 6 months supply of inventory.   Overall absorption levels are close to MSI levels seen in December 2000.
• New pending sales are down 12.2% from November and down 5% year over year.
• Mortgage rates remain in the “Fabulous range”, up a little from the all time lows of earlier in 2010 but still outstanding.   Current predictions are for rates to slowly creep up in the coming months so the news of possible higher rates could spur sales.
• The key indicators for the coming months are the new pending sales numbers pacing the sales numbers to control inventory levels and market absorption numbers returning to 6.3 months of inventory indicating a more balanced market.

Data sourced from Northern Nevada Regional Multiple Listing Service.   Report courtesy of Reno-Sparks Association of Realtors.

To read  the complete December 2010 report with graphs, charts and five year history Reno-Sparks Market Report December 2010.

Reno-Sparks Homes and Real Estate November 2010 and  previous reports.

Summary:

• This past year was one of leveling median sales prices and an artificial stimulus of sales as a result of government incentives as indicated by the year-over-year statistics.   We are cautiously optimistic that 2011 will be yet another year of stabilization of pricing and sales without incentives.

Fernley Homes Median Sales Price

• December 2010 median price decreased by 11.0% to $97,850 compared to $110,000 in November 2010.
• The median sales price has been relatively stable for the past eight months.
• The median price is down only 2.6% from the prior December, a significant improvement over prior year-over-year median price comparisons.
• Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Fernley Number of Homes Sold

• December ended the month with 32 sold transactions a decrease of 22% from the prior month, and may be attributed to the seasonal downturn.
• Sales were down 40.7% over the same period last year.

Fernley Homes Average Days on Market

• The average days on market for Fernley homes are up to 125 days, an increase of 12.7% from the prior month.

Fernley Homes Sold-to-asking-price Ratio

• December reported sales received an average of 97.7% of the seller’s final asking price.

Fernley New Listings

• 42 new listings were taken in December compared to 51 in November, a 17.6% decrease from the previous month and a 8.7% decrease from the prior year.
• The percentage of “Distressed” new listings was down 4 percentage points from November.   74% of new December listings were distressed.   The percentage of distressed new listings has been trending down for the past three months.
• Freddie Mac’s and HUD’s are included in “other” which are classified with bank owned REO properties.

Status of Pending:

• Active Pending – Short Sale represents 56% of the total active pendings; Active Pending Loan equals 7%; Pending No-show represents 32% and Active Pending call 5%.

Fernley Homes Months Supply of Inventory   (Unsold Inventory divided by Sales per Month)

• As of December 31 there was 6.5 months of inventory based on the December sales rate.
• 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 month’s supply of inventory follows the industry standard of including all pending sales in the active inventory.

Conclusion:

• December sales dropped backed to 32 units, a classic winter slowdown as the market performs more normally without the artificial stimulus of government incentives.
• December median sales price is down 11% from the prior month.   In the year-over-year number, we saw a 2.6% decline.   Looking at the prior three December year-over-year declines, this decline was significantly smaller.
• December’s percentage of distressed listings decreased 4 percentage points to 74%.   The percentage of distressed new listings has been trending down for the past three months.
• Fernley inventory levels remain at a balanced market, moving to a mild seller’s market.
• Mortgage rates remain in the “fabulous range”, up a little from the all time lows of earlier in 2010 but still outstanding.   Current predictions are for rates to slowly creep up in the coming months so the news of possible higher rates could spur sales.
• The key indicators for the coming months are the new pending sales number pacing the sales numbers to control inventory levels and market absorption numbers at balanced levels.

To read the full report complete with graphs and charts and 5 year history Fernley Market Report December 2010.

Market report data courtesy of Northern Nevada Regional Multiple Listing Service.

To read November 2010 report.

The Department of Veteran Affairs (VA) has instructed mortgage servicers to pay relocation assistance to borrowers completing short sales or deeds-in-lieu (DIL) of foreclosure on VA loans.

VA has a longstanding policy of encouraging servicers to work with veteran borrowers to explore all reasonable options to help them retain their homes or, when that is not feasible, to mitigate losses by pursuing alternatives to foreclosure.

VA is authorizing servicers to advance $1500 in relocation assistance to borrower occupants who complete a short sale with a VA compromise claim or who execute a DIL.

The transfer of ownership via DIL or short sale is typically shorter than a foreclosure time period, the VA explained, and the property is left in better condition via DIL.   These options can also provide a better outcome than a foreclosure sale for borrowers, investors, and communities.

The amount of the indebtedness reimbursable on a claim after crediting it with the net value of the property (or the short sale proceeds, if larger) is limited to the maximum guaranty of the loan plus the cost of liquidation appraisals.   The servicer must waive any amount on the loan not covered by the sum of the VA guaranty claim amount and the greater of the net value or sale proceeds.

VA expects servicers to notify eligible borrowers of the availability of foreclosure alternatives and encourage completion of a short sale or DIL by providing the homeowner with a written agreement describing the requirements for receipt of a relocation incentive.   With a DIL, the agreement must specify that the property will be unencumbered by other liens or restrictions on title, it will be kept in good and safe condition, and it will be left ready for sale in “broom clean” condition upon homeowner departure.

Reader’s Digest is holding a contest called “We Hear You America”, where they will be awarding more than $5 million in funds and promotional support to 100 towns and cities across the U.S.     The money can be used to promote things like tourism, civic works, job growth and economic development.   Let’s make Fernley one of those cities!

Here’s how it works…click on this link…..http://wehearyouamerica.readersdigest.com/town.jsp?town=FERNLEY&state=NV   and register, it only takes a minute.   From there, click on the blue “Cheer”   button on the left side of the page.   You can do this up to ten times.   Each vote for (or cheer) helps boost Fernley’s ranking.   Today, we are ranked 284th, with 469 votes!   Not bad out of 400 cities.

Any cheering you can do would really help Fernley.   You can vote TEN times every day!   If you feel inspired, you can even type up a little paragraph about an idea you might have to improve our city.

The contest ends February 7, so let’s go, Fernley!

Summary

• We continue to see a mostly sideways trend in year-over-year median sales price.   As we approach 2011, we are hopeful that these trends will continue in the new year and the median sales price movement becomes less volatile.   This stabilization will assist buyers and sellers alike.

Fernley Homes Median Sales Price

• November 2010 median home price increased by 11.1% to $110,000 compared to $99,000 in October 2010.
• The median home sales price has been stable for the past seven months.
• Median home price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Fernley Homes Sold

• November ended the month with 41 sold transactions an increase of 5.1% from the prior month, the fourth consecutive month of increased sales.
• Sales were down 18% over the same period last year.

Fernley Homes Average Days on Market

• The average days on market are up to 111 days, an increaxe of 13.8% from the prior month.   (This would be due to the length of time it takes to close a short sale.)

Fernley Homes Sold-to-asking-price Ratio

• November reported sales received an average of 97.9% of the seller’s final asking price.

Fernley Homes New Listings

• 50 new listings were taken in November compared to 61 in October, an 18% decrease from the previous month and a 15.3% decrease from the prior year.
• The percentage of “Distressed” new listings was down 1 percentage point from October.   78% of new November listings were distressed.
• Note: Properties reported as “other” which includes “Freddie Mac’s and Hud’s” are included with Bank Owned REO properties.

Fernley Homes Status of Pending

• Active Pending-Short Sale represents 57% of the total active pending; Active Pending Loan equals 15%; Pending No-show represents 22%; and Active Pending call 6%.

Absorption Months Supply of Inventory   (Unsold Inventory divided by Sales per Month)

• As of November there was 5.1 months of inventory based on the November sales reate.
• 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 month’s supply of inventory follows the industry standard of including all pending sales in the active inventory.

Conclusion

• This could be described as a normal market as we adjust to the non-incentivized home buying market.
• November median sales price is up 22.8% year over year.   Median home prices continue to show stability with a continuation of a mostly sideways trend with some settling instead of the distinctly downward trend of the prior two years.
• November’s percentage of distressed listings decreased 1 percentage point to 78%, but still remains below last November.
• Fernley homes inventory levels remain at a balanced market, moving to a mild seller’s market.
• In the news:   The interest rates on a 30 year fixed loans increased from 4.46% to 4.61%.   This was reported as a big threat to potential homebuyers by some, an incentive to make a purchase now by others.
• Realtiy check:   That increase in the interest rate represents a $20 per month increase in monthly paymnets for a $200,000 loan, the potential loss of 5 or 6 Starbucks a month, hardly a roadblock to many buyers.   On second thought, it might be enough to push some coffee lovers to make the move to buy that home today.

Data sourced from Northern Nevada Regional Multiple Listing Service.

To read the complete report with graphs, charts and five year history  Reno Sparks November Market Report 2010

Fernley Homes and Real Estate Market Report October 2010

Summary

• We continue to see a mostly sideways trend in year-over-year median sales price.   As we approach 2011, we are hopeful that these trends will continue in the new year and the median sales price movement becomes less volatile.   This stabilization will assist buyers and seller alike.

Reno-Sparks Homes Median Sales Price

• November 2010 median price was down 3.4% to $169,000 compared to $174,950 in October 2010.
• The median sales price has remained relatively stable for the past eighteen months.
• Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Reno-Sparks Homes Sold

• This November’s unit sales are the second highest since 2003 and the fourth highest in history, accomplished without first time homebuyer tax credits.
• November ended the month with 389 sold transactions, down 5.5% from the prior month.
• Sales were down 15.6% over the same period last year.

Reno-Sparks Homes Average Days on Market

• The average days on market are 140 days,up slightly from October 2010.

Reno-Sparks Homes sold-to-asking-price Ratio

• November reported sales received an average of 97.1% of the seller’s final asking price.

Reno-Sparks Homes New Listings

• 536 new listings wee taken in November compared to 587 in October, an 8.7% decrease.
• The percentage of “Distressed” new listings was up less than 1% over the prior month.   68% of new November listings were distressed, 198 Short Sales, 157 Bank Owned/Other.
• Note:   “Other” which includes “Freddie Mac’s” and “HUD’s” are included with Bank Owned REO properties.

Reno-Sparks Homes Status of Pending

• Active Pending – Short Sales represents 62% of the total active pendings; Active Pending Loan equals 19%; Pending No-Show represents 13%; Active Pending call 6%; and Active Pending House less than 1%.

Absorption Months Supply of Inventory   (Unsold Inventory divided by Sales per Month)

• As of November 30, there was 8.3 months of unsold inventory based on the November sales rate.
• 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 in the active inventory.

Conclusion

• November’s unit sales are the second highest since 2003 and the fourth highest in history, accomplished without first time homebuyer tax credits.
• November’s percentage of distressed listings was up less then 1% percentage points to 68%, but still remains below the levels seen last winter
• With inventory levels at eight months, we remain in a mild buyer’s market.   A closer look at the available homes on the market show that properties over $500,000 had over 19 month’s supply of inventory.   This excess inventory in the high end price range impacts the overall month’s supply of inventory.   Even the lower end of the market has moved to just over 7 months supply of inventory.   There is plenty of inventory for buyers to selecf from in the market.
• New pending sales are up 5% from Octoer and up 10% year over year.
• In the news:   The interest rates on 30 year fixed loans increased from 4.46% to 4.61%.   This was reported as a big threat to potential homebuyers by some, an incentive to make a purchase now by others.
• Reality check:   That increase in the interest rate represents a $20 per month increase in monthly payments for a $200,000 loan, the potential loss of 5 or 6 Starbucks a month, harldy a roadblock to many buyers.   On second thought, it might be enough to push some coffee lovers to make the move to buy that home today.

Data provided by Northern Nevada Regional Multiple Listing Service

To read the complete report with graphs, charts and five year history   Reno Sparks November Market Report 2010

Reno-Sparks Homes and Real Estate Market  Report October 2010

NASCAR and Reno-Fernley Raceway announced that the .375 mile banked clay oval will be part of the NASCAR Whelen All-American Series beginning in 2011

The desert jewel is located 30 miles east of Reno, Nevada, just south of Fernley, Nevada.   It originally opened in 1998 and the natural terrain provided a bowl-like setting for the track.

The facility is owned by Rich Cable and promoted by Jan Hodges.   It will host NASCAR sanctioned races on Saturday nights and dirt Modifieds will be The Oval’s Division 1.

The racetract is considered to have the fastest three-eights mile clay oval in the west.   The series’ format is a winning situation for Reno-Fernley Raceway’s drivers, teams, fans and sponsors.

“NASCAR was founded on dirt tracks and Reno-Fernley Raceway is a great place to be for fans and participants on a weekly basis,” said George Silbermann, NASCAR managing director of racing operations.   “It’s a great combination that will bring an even higher profile to everyone involved with the track”.

Other NASCAR sanctioned divisions at Reno-Fernley Raceway are Pro Stocks, Hobby Stocks, Dwarf cars and four cylinder Mini-Modifieds.   They will be categorized as NASCAR Finalist Divisions and also compete for NASCAR points and recognition.

Reno-Fernley Raceway becomes the first NASCAR sanctioned dirt track in Nevada.   It is also the second NASCAR Whelean All-American Series short track operating in Nevada, joining The Bullring at Las Vegas Motor Speedway, a .375 mile paved oval.

NASCAR licensed drivers in the tract designated Division 1 compete for track, U.S. state and Canadian provincial championships and point fund awards, as well as the NASCAR Whelen All-American Series National Championship.   Series sponsor Whelen Engineering provides customized championship driver helmets for track champions and   championship racing uniforms for state champions.   In addition, NASCAR introduced the Finalist Program in 2010 to honor the track’s Division 11-V competitors.

All NASCAR licensed drivers competing in NASCAR sanctioned divisions at sanctioned tracks are also eligible for NASCAR Participant Accident Insurance Coverage.

The eligibility for a NASCAR Learner’s Permit is 14 years of age.   This allows drivers and crew members the opportunity to compete in the entry level divisions as designated by the track (Reno-Fernley Raceway).

The NASCAR Whelen All-American Series is the grassroots, foundation of NASCAR and consists of more than 50 short tracks across North America.   Since its inception, NASCAR Home Tracks have served as a springboard in the careers of many NASCAR Sprint Cup Series drivers.   Greg Biffle, Clint Bowyer, Jeff Burton, Dale Earnhardt Jr., Carl Edwards, Denny Hamlin and Jamie McMurray are among the drivers who began their careers racing in NASCAR Whelen All-American Series.

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Fernley Homes and Real Estate

This beautiful, practically new home was recently sold.   Built in 2006, in the Sierra Vista subdivision   it has 1545 square feet, 3 bedrooms, and 2 baths.   Quality built with stucco exterior, tile roof, and fieldstone brick trim.

Interior upgrades include:   gas fireplace, rounded corners, granite counters and black appliances, upgraded lights and plumbing package.  

I took my buyers to see it the day before it was entered into the MLS and they fell in love with it.   We closed escrow on November 24, 2010 for $119,000.

Reno-Sparks Homes and Real Estate Report details homes sold, listings, bank owned, mls statistics and more.

Summary

• As colder weather months are upon us, we expect to see a slight seasonal downturn in the number of homes sales. We are continuing to see only small decreases in median sales prices from a month-over-month and year-over-year perspective.   As we had anticipated, these numbers again indicate that we are experiencing a leveling of the market.

Reno-Sparks Homes Median Sales Price

• October 2010 median price was up 2.2% to $172,775 compard to $169,000 in September 2010.
• The median sales price has remained relatively stable for the past seventeen months.
• Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Reno-Sparks Homes Sold

• October ended the month with 410 sold transactions, down 11.4% from the prior month.
• Sales were down 27% over the same period last year.

Reno-Sparks Homes Average Days on Market

• The average days on market are 134 days, up slightly from September 2010.

Sold-to-asking-price Ratio

• September reported sales received an average of 97.3% of the seller’s final asking price.

Reno-Sparks Homes New Listings

• 581 new listings were taken in October compared to 653 in September, an 11% decrease.
• The percentage of “Distressed” new listings was up less than 1% over the prior month.   66% of new October listings were distressed, 205 Short Sales, 179 Bank Owned/Other.
• Properties reported as “Other” which includes “Freddie Mac’s and HUD’s” are included with Bank Owned REO properties.

Reno-Sparks Homes Pending

• Active Pending – Short Sales represents 61% of the total active pendings; Active Pending Loan equals 19%; Pending No-show represents 14%; Active Pending call 5%; andd Active Pending House less than 1%.

Reno-Sparks Homes Inventory

• As of October 31, there was 8 months of unsold inventory based on the October sales rate.
• 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 in the active inventory.

Conclusion

• This could be described as a normal market as we adjust to a non-incentivized homebuying world with some softening in the closed sales.
• October’s percentage of distressed listings inched up 5 percentage ponts to 66%, but still remains below the levels seen last winter.
• With inventory levels at eight months, we have moved to a mild buyer’s market.   A closer look at the available homes on the market will show that properties under $300,000 continue to remain in the 5-7 months balanced market range.   Properties priced over the $300,000 price are pushing the month’s supply of inventory into the buyer’s market range.
• New pending sales are down less than 1% from September and down 10% year over year.
• For the Reno market absorption numbers to get back to the stable 5-7 months of inventory, homes available for sale numbers have to decline if the closed sales volume doesn’t keep up.
• Results of our recent elections could have an affect on the housing market.

Courtesy of the Reno/Sparks Association of Realtors with data from Northern Nevada Regional Multiple Listing Service.

To read the complete  RSAR Report October2010   with graphs, charts and 5 year history.

September 2010 Report

Fernley Homes and Fernley Real Estate Market Report MLS Statistics for October 2010

Summary

• As colder weather months are upon us, we expect to see a slight seasonal downturn in the number of home sales. We are continuing to see only small decreases in median sales prices from a month-over-month and year-over-year perspective.   As we had anticipated, these numbers again indicate that we are experiencing a leveling of the market.

Fernley Median Sales Price

• October 2010 median price decreased by 5.3% to $99,450 compared to $105,000 in September 2010.
• The median sales price has been stable for the past six months.
• Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Fernley Homes Sold

• October ended the month with 38 sold transactions an increase of 15% from the prior month.
• Sales were down 39.7% over the same period last year.

Fernley Homes Average Days on Market

• The average days on market are up to 99 days, an increase of 4% from the prior month.

Fernley Homes Sold-to-asking-price Ratio

• October reported sales received an average of 99.1% of the seller’s final asking price.

Fernley New Listings

• 60 new listings were taken in October compared to 49 in September, a 22.4% increase over the previous month and a 14.3% decrease from the prior year.
• The percentage of “Distressed” new listings was down 2 percentage points from September. 78% of new October listings were distressed.
• Note: Properties reported as “other” which includes “Freddie Mac’s and HUD’s” are included with Bank Owned REO properties.

Status of Pending Homes

• Active Pending – Short Sale represents 56% of the total active pendings; Active Pending Loan equals 17%; Pending No show represents 23% and Active Pending call 4%.

Fernley Homes Months Supply of Inventory   (Unsold Inventory divided by Sales per Month)

• As of October 31, there was 5.4 months of inventory based on the October sales rate.
• 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 month’s supply of inventory follows the industry standard of including all pendings sales in the active inventory.   The calculation of month’s supply of inventory excluding Active Pendings would bring the absorption down to 2.7 months supply of inventory.

Conclusion

• This could be described as a normal market as we adjust to a non-incentivized homebuying world with some softening in the closed sales.
• October median sales price is down less than 10% year over year.   Median home prices continue to show stability with a continuation of a mostly sideways trend with some settling instead of the disctinctly downward trend of the prior two years.
• October’s percentage of distressed listings decreased 2 percentage points to 78% but still remains below the levels seen last year.
• Fernley home inventory levels remain at a balanced market, moving to a mild seller’s market.   This is also reflected in sold to asking price ratio, which has favored sellers for the past three months.
• Results of our recent elections could have an affect on the housing market.

Courtesy of the Reno/Sparks Association of REALTORS ®, data  from the Northern Nevada Regional Multiple Listing Service.

To read the complete FernleyStandardReportOctober2010   report complete with graphs, charts and five year history.

September Report