Reno Real Estate: Supply (Updated May 7,2008)

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    "..And to have the best chance of selling a home, sellers should think of putting their homes in the market as early as April-May and price it aggressively. " 
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About:  We will be looking at the  number of homes for sale in Reno,NV starting from November of 2005- April of 2008.

WIIFM(what's in it for me?): By following the number of homes for sale in the Reno Real Estate market we will understand the overall supply in the Reno market.  Here you will be able to compare exactly how the inventory of homes have been going up or down(broken down per month for the past twenty-nine months).

Highlights: 

(April 2008) As predicted Reno real estate's supply of homes have been going up.  There are 191 more homes in the market compared to last month.  Sellers are beginning to catch on to the increase in buyer's activity.

Observation/comments: 

I talked to my client yesterday and I was sharing to him why it's vital to put his home in the market before the summer officially starts and to price his home aggressively.  'This is what I would do If I was in your position', I told him. 

I was basing my advice from this graph. Plain and simple, people like buying homes in Reno (in significant numbers) when it is warm outside.  And to have the best chance of selling a home, sellers should think of putting their homes in the market as early as April-May and price it aggressively. 

If I was a seller in this market, I would set the price for my home where I would be number one in the neighborhood.  The number one mistake sellers make (in the current state of our market) is they try to 'test' the market; for example, when they see that the comparables for their home is $330k they will still try to sell it for $350k and test it out for two months.  What happens is because the market is going down, after two months the nearest comparable is no longer $330k but $315k they have just lost $15,000 assuming that the home will sell for $315,000.

What I would do if I was in the seller's position is I would immediately price my home at or even a few thousand lower than my lowest priced competitor.  My whole strategy in doing this is I want to cut my losses short.  'knowing when to fear and when to hope can make all the difference in the world'. 

The market never fails to give us clues on where it is going.  Knowing what the market is doing will give us the much-needed confidence in making gutsy calls like cutting our losses short. 

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"If you have a more specific question about the Reno or Sparks real estate market, call Joe (775-338-7653) or Ian (775-338-7649) for a no hassle-no pressure phone meeting."

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Graph:

Click Here For Full Page View 

Reno number of homes for sale:

• Apr '08:  2,749

• Mar '08: 2,558

• Feb '08:  2,476

• Jan '08:  2,544

• Dec '07:  2,581

• Nov '07:  2,784

• Oct '07:   3,024

• Sep '07:  3,064

• Aug '07:  3,307

• Jul '07:    3,251

• Jun '07:   3,208

• May '07:  3,065

• Apr '07:   2,913

• Mar '07:  2,691

• Feb '07:  2,531

• Jan '07:  2,711

• Dec '06:  2,664

• Nov '06:  3,056

• Oct '06:   3,350

• Sep '06:  3,528

• Aug '06:  3,688

• Jul '06:   3,549

• Jun '06:  3,415

• May '06:  3,121

• Apr '06:   2,658

• Mar '06:   2,533

• Feb '06:   2,259

• Jan '06:  2,480

• Dec '05:  2,444

• Nov '05:  2,700

P.S- If you have something to add about what's happening in your neighborhood or you disagree with me on something or just want to rant about the market, your most welcome to add to the conversation by leaving a comment .  Thanks!

*  Reno Residential homes site/stick built

Updated: May 7,2008
Source: Multiple listing Service
Next Release Time:  June 7,2008  (Every 7'th of the month)

Comments

[Ann O.]

Thanks for doing this--will you keep updating it? I see an annual cycle there, but I'm surprised to see fewer homes for sale in 2007 than in 2006--I thought it would be the other way around.

Do you have any opinions on reasons? I thought homes being on the market longer and resetting mortgages would increase inventory. Maybe a lot of people put their homes on the market in 2006 just to get their profits and decided to stay put when they saw they couldn't sell for the price they thought they could. Do bank-owned properties show up in these numbers?

Posted by: Ann O. | January 08, 2008 at 10:21 AM

[Ian Mariano]

Ann,

Yes, we will be updating this statistic every 7'th of the month.

"but I'm surprised to see fewer homes for sale in 2007 than in 2006--I thought it would be the other way around."

I had the same preconception Ann. There is definitely a good number of people in 2006 who was trying to sell their house but couldn't get the price they wanted. I can think of three right now that I personally know.

One of the possible reasons why the inventory is going down could be that people are scared to sell and are still clinging on the dangerous hope that the market would be better in 2008 or 2009.

About your question if the bank-owned properties are included in this list, I am not sure as of the moment I would have to ask Joe if he knows.

Posted by: Ian Mariano | January 08, 2008 at 11:09 PM

[Ian Mariano]

That's new. I didn't know Home Depot was already offering an online FSBO site at their stores.

Posted by: Ian Mariano | January 11, 2008 at 12:51 PM

[Ian Mariano]

Ann,

Joe said that bank owned properties are part of this list if they hired a Realtor to sell it for them.

I get all the stats through the MLS. And every Realtor puts his/her listing in the MLS.

Posted by: Ian Mariano | January 11, 2008 at 12:53 PM

[Mark]

Thanks for the constant update.

It really makes it clearer for people interested on what's happening in our market.

Keep it up

[Ian Mariano]

Mark,

Your most welcome, of course.

let me know if you additional questions.