Real Estate – Here and There

Real estate markets are changing throughout the nation. The worst in the housing crisis seems to be coming to an end. Sales are up in Washoe County as well as many other parts of the country. Even the hardest hit areas, such as California and Michigan, have seen a marked increase in the number of homes sold.

Here, in the Greater Reno-Tahoe area, home sales are still down compared to 2007; but for the past three months sales volumes have increased over the month prior. According to the most recent report by the University of Nevada, overall home sales rose in April by 23% for single family homes and almost 9% for condominiums compared to home sales in March 2008.

Market data shows that buyers are seeing existing homes as the better value at this time. Existing home sales increased by over 39% in the month of April while new home sales decreased. Sparks experienced the largest increase, with sales up by a 124%!

Prices are still trending down in many areas of Washoe County but with the number of increased sales this trend could be nearing its end. Supply and demand is the biggest factor in the downward trend; currently there is still a 12 month supply of inventory on hand.  The median sales price in Washoe County in the month of April was $299,000, the same as March 2008 but down about 9% from a year ago.

With the current trend of increasing sales, it is only a matter of time before the supply and demand issue will be balanced and prices will stabilize. I am not saying that we have reached the bottom of the market, but with the recent national and local figures, which have recently been reported, it does appear that the end of the declining market here in Washoe County and the nation may be in sight.