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Carson Valley Real Estate – Homes Sold in February 2010

We had 29 homes sell in the Carson Valley in February 2010, up from 26 in January 2010. We’ve had a very busy winter, with almost 60 homes selling already during winter – a time when most people are not thinking about moving!

Here is a snapshot of our market indicators for February:

• 29 homes sold
• Median asking price is $199,900
• Median selling price is $210,000
• Median days on market is 141

So what is the absorption rate for the Carson Valley?

• There are 383 homes available for sale in the Carson Valley as of 3/8/2010
• 29 homes sold in January
• 383/29 = 13.2 months of inventory

Since the number of sales slowed in February from our (recent) normal average of 40-50 homes per month, our absorption rate has increased a few perentage points. It is still better than the 14.5 from January. A more telling indicator of the activity in the market is the question “How many homes are pending right now?” As of today, there are 128 homes under contract – a 3 month high. This is much more indicative of what we are seeing in our office – Since January 1, 2010, the RE/MAX Gardnerville office has opened 92 escrows. That’s an incredible volume when you consider the fact that it’s still Winter! Of the 128 pending home sales, 22 are bank owned, 59 are short sales, and 1 is subject to court approval.

Of the 383 homes on the market, 29 are bank owned, 58 are short sales, and an additional 3 are Subject to Court Approval. That means that 23% of our market is distressed. Slowly but surely our distressed property percentage of the market is shrinking? Will that continue? I’m not sure – my instinct tells me the next wave will be jumbo loan defaults and foreclosures in our area – how that will affect our market is anyone’s guess.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley which includes Gardnerville, Genoa, Minden, Indian Hills area of Carson City, China Springs, Spring Valley, Topaz Ranch Estates and outlying areas.)

Carson Valley Real Estate – Homes Sold in January 2010

We had 26 homes sell in the Carson Valley in January 2010, compared to 21 sales in January 2009. January historically is a slow month for home sales, so this is not altogether surprising, and certainly nothing to be alarmed over. Most escrows take 45 days to close and that means home buyers would need to be out shopping for homes in December. Instead, people were enjoying their Winter Holidays. 

Here is a snapshot of our market indicators for January:

• 26 homes sold
• Median asking price is $236,400
• Median selling price is $233,000
• Average days on market is 120

So what is the absorption rate for the Carson Valley?

• There are 377 homes available for sale in the Carson Valley as of 2/4/2010
• 25 homes sold in January
• 377/26 = 14.5 months of inventory

Since sales slowed in January, our absorption rate slipped a few perentage points. The key indicator we need to inquire is how many homes are pending right now? As of January 4, 2010, we had 84 homes under contract in the Carson Valley. As of today, there are 115 homes under contract. That’s an increase of 37% and clearly demonstrates that as soon as the holidays ended, the buyers came back out into the marketplace. Of the 115 pending home sales, 57 are pending short sales and 23 are bank owned properties.

Of the 377 homes on the market, 43 are bank owned, 53 are short sales, and an additional 4 are Subject to Court Approval. That means that 25% of our market is distressed.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley which includes Gardnerville, Genoa, Minden, Indian Hills area of Carson City, China Springs, Spring Valley, Topaz Ranch Estates and outlying areas.)

Carson Valley Real Estate – Homes Sold in December 2009

We had 48 homes sell in the Carson Valley in December 2009, compared to 38 sales in December 2008. We ended the year on a high note with a higher than historical average of home sales in December 2009. We ended the year with 557 sales for all of 2009, substantially higher than the 474 sales in all of 2008. Indicators show that our market has moved through the low point in sales volume. When volume begins to pick up, elementary economics will show that price appreciation typically follows. We’ll continue to watch 2010 trends closely to see if this indeed is the case in the Carson Valley.

Here is a snapshot of our market indicators for December:

• 48 homes sold
• Median asking price is $251,000
• Median selling price is $251,000
• Average days on market is 143

The median asking and selling price for Carson Valley Real Estate was EXACTLY the same in December. What does this mean? It means that buyers and sellers are exactly aligned when it comes to asking and selling prices. Barring any unforeseen market shake-ups (like a glut of bank owned foreclosures being thrown on the market) it appears that we have officially stabilized and modest appreciation will begin to occur in homes priced under the median of $251,000.

So what is the absorption rate for the Carson Valley?

• There are 388 homes available for sale in the Carson Valley as of 1/4/2010
• 48 homes sold in November
• 388/48 = 8.08 months of inventory

The absorption rate has remained essentially the same in December when compared to the previous month. As of January 4, 2010, we have 84 homes under contract in the Carson Valley. Of the 84 homes under contract, 43 are pending short sales and 19 are bank owned properties.

Of the 388 homes on the market, 43 are bank owned, 53 are short sales, and an additional 3 are Subject to Court Approval. That means that 25% of our market is distressed.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley which includes Gardnerville, Genoa, Minden, Indian Hills area of Carson City, China Springs, Spring Valley, Topaz Ranch Estates and outlying areas.)

Carson Valley Real Estate – Homes Sold in November 2009

We had 57 homes sell in the Carson Valley in November 2009, compared to 29 sales in November 2008. With 59 homes sold in October 2009, we’re still selling homes at an even pace, and we’re much improved over the previous year. Sales volume was 193% higher in 2009 than it was in 2008.

Here is a snapshot of our market indicators for November:

• 57 homes sold
• Average asking price is $325,374
• Average selling price is $306,414
• Average days on market is 175

The average asking and selling price for Carson Valley Real Estate continued it’s reasonable and historic average in November.

So what is the absorption rate for the Carson Valley?

• There are 418 homes available for sale in the Carson Valley as of 12/16/09
• 57 homes sold in November
• 418/57 = 7.33 months of inventory

The absorption rate has remained essentially the same in November when compared to the previous month. As of December 16, 2009, we have 113 homes under contract in the Carson Valley. Of the 113 homes under contract, 60 are pending short sales (which are closing at a much higher success rate in the last 60 days) and 22 are bank owned properties.

Of the 418 homes on the market, 48 are bank owned, 49 are short sales, and an additional 3 are either Subject to Court Approval. That means that 24% of our market is distressed.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley which includes Gardnerville, Genoa, Minden, Indian Hills area of Carson City, China Springs, Spring Valley, Topaz Ranch Estates and outlying areas.)

Arbor Gardens – located in Gardnerville Nevada – the heart of the Carson Valley – is a new spin on a traditional old-town neighborhood, known as neo-traditional architecture. You’ll find old style charm on the outside with all the updated amenities of a new home inside. All the homes in Arbor Gardens feature inviting covered porches in front, and garages in the rear, which creates a very charming streetscape for it’s residents. There are five floorplans in Arbor Gardens. The smallest is a 967 square foot single story home with 2 bedrooms and 2 full baths. The largest is a 2,051 square foot, two story home. It offers four bedrooms, 2.5 baths, and a den located just off of the foyer that could easily double as a fifth – or guest – bedroom.

For up to the minute information on homes available for sale from Reno to the Carson Valley, visit GreatNevadaHomes.com. Search for homes, read our blog, and see other great videos about Northern Nevada neighborhoods and community events. If you’d like to speak to someone right away, please call Steve Orear at (775) 690-0685 or Christy Gordon at (775) 881-8223. Steve and Christy are REALTORS® with RE/MAX Realty Affiliates and deliver results for buyers and sellers across the Carson Valley, Northern Nevada and beyond.

Carson Valley Real Estate – Homes Sold in October 2009

We had 59 homes sell in the Carson Valley in October 2009, compared to 26 sales in October 2008. That means our sales volume was 126% higher in 2009 than it was in 2008. While we do not have a way to track how many of these transactions were attributed to the First Time Home Buyer Tax Credit, we certainly believe it to be true. There were 45 home sales in September, making October’s volume 31% higher than the previous month. Typically October is not such an active month, so it seems as though the tax credit has helped sell more homes in the Carson Valley.

Here is a snapshot of our market indicators for October:

• 59 homes sold
• Average asking price is $327,689
• Average selling price is $312,679
• Average days on market is 133

The average asking and selling price for Carson Valley Real Estate returned to a more reasonable and historic average in October, after being down almost $100,000 in October.Why is that, you ask? Well, of the 45 sales in September, 11 were bank owned and 9 were short sales. That means 44% of September’s sales were distress sales with distressed values and sales prices. In October, 14 bank owned homes and 6 short sales sold. There were also 5 more sales that were either Subject to Court Approval or some other distressed category. That means that 25 of the 59 Carson Valley Home Sales in October were distressed, totalling 42% of the sales for the month.

So what is the absorption rate for the Carson Valley?

• There are 438 homes available for sale in the Carson Valley as of 11/4/09
• 59 homes sold in September
• 438/59 = 7.42 months of inventory

The absorption rate tightened significantly in October, and that is partially due to more sales closing, but also more homes in escrow essentially removing them from the “available” market. As of 11/4/09, we have 140 homes under contract in the Carson Valley. Of the 140 homes under contract, 61 are pending short sales (which are closing at a much higher success rate in the last 60 days). Banks have finally managed to get short sale departments staffed and trained so they can better respond to short sale packages. Wells Fargo is one of the best banks in the market right now with a published policy and a commitment to have an answer back to the short sale candidate in 30 days. With banks being more willing to approve short sales, it is increasing their attractiveness in the market and removing their stigma both in the eyes of real estate professionals and prospective buyers.

Of the 438 homes on the market, 33 are bank owned, 53 are short sales, and an additional 12 are either Subject to Court Approval or some other distress situation. That means that 22% of our market is distressed.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley which includes Gardnerville, Genoa, Minden, Indian Hills area of Carson City, China Springs, Spring Valley, Topaz Ranch Estates and outlying areas.)

September 2009 Home Sales Results – Carson Valley Real Estate Market Report

We had 45 homes sell in the Carson Valley in September 2009, compared to 56 sales in August of 2008. That means our sales volume was 20% lower in 2009 than it was in 2008. Perhaps our buyer pool is drying up? We had 41 sales in August 2009, so our volume is relatively steady when compared to last month. Will sales pick up in October because the First Time Home Buyer Tax Credit ends on November 30, 2009? If you’re not in escrow by October 15, the likelihood of closing your escrow by November 30th is near impossible if you are using a loan, so we’ll need to watch pending property counts around October 15th to see if that has any impact on our market.

Here is a snapshot of our market indicators for September:

• 45 homes sold
• Average asking price is $252,187
• Average selling price is $239,017
• Average days on market is 139

The average asking and selling price for Carson Valley Real Estate swung wildly lower in September. Why is that, you ask? Well, of the 45 sales, 11 were bank owned and 9 were short sales. That means 44% of September’s sales were distress sales with distressed values and sales prices. They will drag down the values in the short term. The bright spot in all of this is that the days on market reduced to 139 from last month’s 153.

So what is the absorption rate for the Carson Valley?

• There are 460 homes available for sale in the Carson Valley as of 10/2/09
• 45 homes sold in September
• 460/45 = 10.22 months of inventory

The absorption rate tightened slightly in September, and we attribute that to a handful more sales, and a slightly lower number of homes available for sale. In August, we had 471 homes available for sale and 41 homes sold, giving us an absorption rate of 11.49.

Of the 460 homes on the market, 23 are bank owned and 61 are short sales.That means that 18% of our market is distressed. New bank-owned properties (REO) have been coming on the market and they’ve been selling quickly. The downside is that they sell for low prices, dragging values down in their respective neighborhoods. Most of these bank owned homes have had multiple offers which has created a slight uptick in sales prices over asking prices. This has generated very modest price appreciation in the entry level market (below $200,000). Homes priced above $300,000 are still duking it out with competing properties to get a sale and prices continue to slide in that range as much as 1-1.5% per month. 

With the first time homebuyer credit expiring on November 30, 2009, there’s a big incentive for homebuyers to get out there and buy a home. Will it be extended? I suspect it may, but I’m not holding my breath, and neither should qualified buyers hoping to take advantage of the tax credit.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley and outlying areas. Carson Valley photograph courtesy of ScottSchrantz – Flickr.com)

August 2009 Carson Valley Real Estate Market Report

We had 41 homes sell in the Carson Valley in August 2009, compared to 43 sales in August of 2008. It’s always better to compare the same month in the previous year so that you’re comparing similar seasons. August is typically a month for vacations for children with families so the volume tends to be lower. Comparing year over year numbers gives us a clearer, more comparable vantage point than comparing August to July.

Here is a snapshot of our market indicators for August:

• 41 homes sold
• Average asking price is $360,741
• Average selling price is $338,120
• Average days on market is 153

So what is the absorption rate for the Carson Valley?

• There are 471 homes on the market as of 9/2/09
• 41 homes sold in July
• 471/41 = 11.49 months of inventory

Since our monthly number of sales dipped in August, that causes a slightly higher absorption rate in the Carson Valley. I think this is a temporary blip and we’ll see it come back down in September, since the number of homes on the market has held steady. Volume typically drops off in August due to the cyclical nature of the market.

Of the 471 homes on the market, 19 are bank owned and 62 are short sales. That means that 17% of our market is distressed. New bank-owned properties (REO) have been coming on the market, but we’ve been seeing multiple offers on every one of them. When priced below $175,000, the competition is stiff and sold prices are above listing prices. This is a good sign for our market, and we suspect that the competition will become even more fierce as we get closer to the December 1st deadline for the $8,000 first time homebuyer tax credit.

With the first time homebuyer credit expiring on December 1, 2008, there’s a big incentive for homebuyers to get out there and buy a home. Will it be extended? I believe it will be, but don’t bet on it! If you’re a buyer debating buying a home right now in Northern Nevada, don’t wait for these statistics to continue to trend upward. It may just cost you the house of your dreams.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley and outlying areas. Carson Valley photograph courtesy of ScottSchrantz – Flickr.com)

Welcome to the second post in a series of 7 posts covering the more important issues about buying a home in Northern Nevada.

In the first post, we covered the topics “Why Should I Own A Home?” and “Why Should I Use a REALTOR®?”.

Whether you’ve owned a Northern Nevada home before, or you are a first time Northern Nevada home buyer, having a Buyer’s Guide can be a very helpful tool before, during, and even after the homebuying process.

Since most people don’t buy and sell homes every month, let alone every year, we have put together a fantastic 36-page “Just For Buyers” Guide.

In this post, we’ll be covering “Real Estate Commissions Explained” and “Steps to Prepare for Home Ownership”.

Real Estate Commissions Explained

Northern Nevada real estate agents are paid on a commission basis. Most often, the listing agent and the buyer’s agent are paid a commission by the Seller based on the selling price of the home. The amount of the commission varies depending on what the seller offers.

Every Northern Nevada real estate agent sets his or her own commission fees. In fact, it is illegal to discuss what rates are “typical” in the market or for agents to discuss commissions rates amongst themselves. The industry considers this “market collusion” and an agent can lose their license if they are caught discussing commission rates.

Sometimes, the public has a perception that Northern Nevada real estate agents make a lot of money for not very much effort. What they public doesn’t realize is that real estate agents are not employees – they are independent contractors. While each agent may be affiliated with a broker – like RE/MAX or some other firm – the agent is in business for themselves. They have expenses to cover that are quite expensive, such as annual dues to the national and local real estate boards, license renewal fees every two years – for each state they are licensed in, quarterly fees to access the MLS (multiple listing service), quarterly expenses to have a lock box key, errors & omissions insurance (to protect the agent and clients from mistakes), and continuing education classes to continue to hold licenses. This typically costs several thousand dollars per year. This does not even include the marketing expenses associated with selling a listing, or the amount of time and expense to show a buyer properties. Plus – agents must share each commission earned with their broker – with the percentage of that commission split varying depending on the agreement the agent has with the broker.

The good news is, as a buyer, the cost for you to have an Northern Nevada agent representing your best interests is virtually free to you. Since the seller pays the buyer’s agent a commission for finding the buyer, you get great expertise for free! What a deal!

7 Steps To Prepare For Home Ownership

1. Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income (your salary or earnings before any deductions). In order to be certain, get pre-qualified with a Northern Nevada lender and discuss beforehand the type of mortgage to plan to use to purchase your home. That way you can develop a budget and help keep yourself on track financially and not be tempted to overspend.
2. Develop a wish list of what you’d like your Northern Nevada home to have. Then prioritize the features on your list. Keep in mind that features are ‘essentials’ and bells & whistles are ‘nice to have but not necessary’. We will refer to this list often while viewing homes to help make sure the home is right for you.
3. Determine if you have enough saved to cover your down payment and closing costs. Closing costs, including taxes, attorney’s fees, and transfer taxes average between 2 and 7 percent of the home price.
4. Get your credit in order. Obtain a copy of your credit report.
5. Think like a Northern Nevada lender: Organize all the documentation a lender will need to pre-approve you for a loan.
6. Do research to determine if you qualify for any special Northern Nevada mortgage or down payment assistance programs. One common program used in rural Northern Nevada is the USDA Rural Housing Development Loan Program.
7. Find an experienced Northern Nevada REALTOR® who can help you through the process.

In the third post in this series, we’ll discuss your New Northern Nevada Home Wish List and Tips for Finding the Perfect Northern Nevada Neighborhood. If you’d like a FREE copy of our complete 36 page Northern Nevada “Just for Buyers Guide” just let us know. We’re happy to provide you with one to assist you on your road to home ownership.

July 2009 Carson Valley Nevada Real Estate Market Report

We had 58 home sales in the Carson Valley in July 2009, a 26% volume increase year over year when 46 homes sold in July 2008.

Here is a snapshot of our market indicators for July:

• 58 homes sold
• Average asking price is $374,596
• Average selling price is $347,528
• Average days on market is 182

So what is the absorption rate for the Carson Valley?

• There are 479 homes on the market as of 8/4/09
• 58 homes sold in July
• 479/58 = 8.26 months of inventory

The absorption rate for the Carson Valley continues to hold steady after tightening up in June. I had predicted we wouldn’t see single digit absorption rates until the third quarter but the market improved in June and continues to stand strong in July.

Of the 479 homes on the market, 28 are bank owned and 56 are short sales. That means that 18% of our market is distressed. With everything that we’ve heard in our market, we are seeing more REO properties hit the market, but the good news is that we are seeing multiple offers on every one of them. When priced below $175,000, the competition is stiff and sold prices are above listing prices. This is a good sign for our market, and we suspect that the competition will become even more fierce as we get closer to the December 1st deadline for the $8,000 first time homebuyer tax credit.

With the first time homebuyer credit expiring on December 1, 2008, there’s a big incentive for homebuyers to get out there and buy a home. Will it be extended? I believe it will be, but don’t bet on it! If you’re a buyer debating buying a home right now in Northern Nevada, don’t wait for these statistics to continue to trend upward. It may just cost you the house of your dreams.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley and outlying areas. Carson Valley photograph courtesy of ScottSchrantz – Flickr.com)