Reno Number of homes SOLD: Nov 2005-Jan 2008
Updated: Feb 14,2008
About: If the inventory of homes(posted last Friday) show us the supply, In this post we will be looking at the demand side of the Reno real estate market.
WIIFM (what's in it for me?): By comparing the inventory of homes for sale in the Reno real estate market VS the number of homes SOLD we will better understand the overall strength of the Reno real estate market.
Highlights: The number of homes SOLD in Reno this month is in its lowest in the past 25 months (since Nov 2005).
From November 2007-December 2007 Reno experienced an increase of fourteen homes SOLD. An increase of 9.71%.
(Feb 14,2008) *Solds number was revised from 150 to 160 SOLD homes for December 2007.
(Feb 14,2008) A decrease of 58 homes in one month. A 36% drop (Dec 2007-Jan 2008) A painful loss. I wonder if the buyers will be more active this coming summer.
Observation/comments: Though the inventory of homes for sale in Reno decreased (a positive sign for the market); the number of homes SOLD did not increase (a negative sign). Reno existing home sales is still in a downward trend.
Let's see what follows the latest 10.29% increase in the homes SOLD.(December 2007)
(Feb 14,2008) The increase in December 2007 was followed by a massive decline of 58 homes in January 2008- a decrease of 36%.
(click image to enlarge)
- Nov '05: 263
- Dec '05: 223
- Jan '06: 187
- Feb '06: 177
- Mar '06: 255
- Apr '06: 244
- May '06: 259
- Jun '06: 288
- Jul '06: 255
- Aug '06: 208
- Sep '06: 212
- Oct '06: 241
- Nov '06: 188
- Dec '06: 196
- Jan '07: 171
- Feb '07: 186
- Mar '07: 219
- Apr '07: 213
- May '07: 250
- Jun '07: 217
- Jul '07: 197
- Aug '07: 211
- Sep '07: 145
- Oct '07: 162
- Nov '07: 137
- Dec '07: 160
- Jan '08: 102
* Reno Residential homes site/stick built
Updated: Feb 14,2008
Source: Multiple listing Service
Next Release Time: March 10,2008 (Every 10'th of the month)
the information i needed, though still confused about the market. i hear builders slashing thousands of dollars, yet im afraid the homes not being there esp. new ones when i do desire to get one. Thanks for the post
Posted by: mark | December 20, 2007 at 09:25 PM
Mark,
COntinue feeling the pulse of the market. If you're confused may i suggest continue asking the right questions on your investment decisions. And go through your financial standing thoroughly eventually, hopefully the answer will later on present itself.
-Ian
Posted by: Ian Mariano | December 21, 2007 at 10:49 PM
while i agree we are still a correction take place.... what is the regional variation....is there a way to stratify the data(via zip code or price) to better predict the market boundries regarding price and rebound
Posted by: Michael | January 02, 2008 at 07:25 PM
Michael,
Yes, I think i could dig up some data regarding more specific zip codes in Reno. Let me know what specific zip codes you are looking into.
-Ian
Posted by: Ian Mariano | January 03, 2008 at 02:17 PM
IAN...
Thanx for your blog site and your response! I commend you both for this move into blogging and seeing ALL sides... I watch CNBC daily and as in RE I realize they mostly are selling the bullish side of stock investing... But I think that Diana Orlich (from CNBC RE blogs etc.) has been right on, from the center all along, re RE market opinions! She apparently is not owned by any one lobby and that is a rare but refreshing site to see!!
I've been fascinated for several years re the changes in the RE cycle(s)... Besides appraising RE I own 8 lower income rentals, have remodeled many homes, bought & sold several (you make the profit, hopefully, on the buy) homes, took required RE licensing courses - but chose not to sell due to market changes, and have taken many RE seminars (most recent a 3 day short sale seminar in Sacramento - couldn't be a better area to sponsor the training) and have a couple of very seasoned investors that I listen to carefully!
Love the Rich Dad philosophy of cash flow importance in a buying decision, especially in our current market... I personally would not want to pay more than 60 % of the (supposed) current market value for a home... In fact a mentor of mine says that the present fad of investing in foreclosures etc. will see these same (impatient) investors/speculators losing their investments back to foreclosures themselves due to tightning in lending standards and skittish buyers who do not want to buy before the bottom of the market...
Again, thanx IAN for this forum, and I would love to get involved somehow/someway... If nothing else I read & watch quite a bit (WStreet Journal, Business mags, many internet blogs etc.) - the NY Times has great (small) business sections w many times the newest ideas - for instance the foreclosure bubble is more due (rather than adjusting ARMS) to many savvy buyers not wanting to jump in now - as well as descending values to the homeowner give them no incentive to pay their mortgage as their home is a/the major investment and not just a place to live!
I'm rambling so feel free to edit anything I write appropriately!
Scott
Posted by: Scott in Hooterville | January 03, 2008 at 08:51 PM
Scott,
Your warm praises are appreciated.
Wow. You have some very wide-ranging real experiences under your belt. That's superb.
I'm sure I can learn something new from you..: " 3day short sale seminar" nice.
I'll shoot you an email.
Posted by: Ian Mariano | January 04, 2008 at 04:16 PM
Thank you for all of the information provided in this blog. As a future first time home buyer, I have been watching the market for a few years now, and I like to try and get a feel for it from as many sources as possible. Yours seems to be one the few that provides specific data for this area. Thanks again.
Posted by: Jason | January 24, 2008 at 05:59 PM
Jason,
Pleasure is ours.
'as a future first time home buyer, I have been watching the market for a few years now, and I like to try and get a feel for it from as many sources as possible.' - That's superb man. Keep it up.
I'm glad the data helps.
Posted by: Ian Mariano | January 25, 2008 at 09:51 AM