GreatNevadaHomes.com

Is the Reno and Sparks Nevada home buyer pool drying up? Signs are definitely showing the market is slowing and the number of closed escrows every month has diminished steadily over the last 3 months.

The graph below charts the Reno & Sparks home sales volume for 2000 – 2009 (year to date):

As you can see, the volume of home sales continues to decline. For the first 9 months of 2009, there were 2,800 homes sold in the Reno / Sparks area. That means unless another 1,100+ homes sell between today and December 31, 2009, then 2009 will have the lowest home sales volume of the decade. For those of you that like to see the data, here are the numbers of homes sold by year:

2000 – 4,695

2001 – 4,835

2002 – 5,548

2003 – 6,163

2004 – 6,856

2005 – 7,261

2006 – 5,075

2007 – 3,936

2008 – 4,425

2009 – 2,800 for 1/1/09 – 9/30/09

I hate to be the bearer of bad news, but Reno and Sparks still have a long way to go towards becoming a normal functioning market. The good news is the relative affordability of homes in the area has improved drastically over the last 24 months. Can you imagine what our sales volume would have been had we not had the $8,000 first time home buyer tax credit to aid 2009 sales?

(Data is courtesy of the Northern Nevada Regional Multiple Listing Service, excludes manufactured or shared ownership housing, and covers Area 100, commonly defined as the Greater Reno & Sparks area including Pleasant Valley, Galena, South Meadows, Damonte Ranch, Hidden Valley, Caughlin Ranch, Arrowcreek, Stead, Cold Springs, Sun Valley, Lemmon Valley, Golden Valley and Spanish Springs.)

Sparks Nevada Homes – NEW LISTING – 2655 Firenze Drive – $349,900

High ceilings, custom paint and wall treatments, and city views are just the beginning of this wonderful home. This wonderful 3 bedroom plus den, 2 bath, 2 car garage, 2618 square foot De’Andrea home has custom touches throughout including designer drapery, venetian plaster focal points, hardwood floors, and a great room/kitchen that perfectly frames the spectacular views of Reno, Sparks and the Sierra Nevada Mountain Range. The kitchen features a casual dining area, a breakfast bar, a desk/nook, loads of cabinets, a gas cooktop, single oven and built-in microwave.

Professionally landscaped front and back yards include a fully automated sprinkler system. The front room adjoining the formal living and dining room is perfect for a den, or close off the wall and add a door, and you have a 4th bedroom perfect for a larger family or guests. Stone paver accents in the front walk and the rear patio are delightful designer touches you’ll really appreciate. Don’t overlook the Ryder 2×6 quality construction.

This home is a TRADITIONAL SALE – it is NOT a SHORT SALE or an REO!

View the Virtual Tour Here! Sparks Nevada Home 2655 Firenze Drive

For more information or a showing on this property, please call Christy at (775) 881-8223 or Steve at (775) 690-0685.

Carson City saw a bit of a derease in the number of homes sold in June compared to May. In June, 33 homes sold compared to 40 in May. However, when you compare June 2008 to June 2009, year over year volume is up. In June 2008 only 27 homes sold. Some pundits think that year over year is a better comparison that month over month because it compares a similar time of year.

A whopping 88% of the homes (or 26 homes) that sold in June went for less than $200,000, demonstrating that home affordability is back in our state’s Capitol. To further demonstrate the changing dynamic of prices in Carson City, there was not a single sale over $500,000, only one over $400,000, and three between $300,000 and $400,000. There were also three sales between $200,000 and $300,000. It’s clear that buyers simply are not interested in buying in Carson City when the price goes above $200,000.

Today there are 283 homes for sale in the Carson City area. Of the 283 homes available for sale, 21 are bank owned and 35 are short sale. That means 56 – or 19.8% – of the market is distressed.

How is the absorption rate looking for Carson City? Let’s take a look…

• Carson City currently has 283 homes on the market.
• In June, 33 homes sold
• 283 / 33 = 8.57 months

June marked a slip just outside the ‘normal’ range when considering the absorption rate. A normal market is defined as 5-7 months of inventory available for sale, determined by the absorption rate. The Carson City real estate market continues to struggle to determine it’s price floor and a steady sales volume.

(Our data is from the NNRMLS, excluding all shared ownership or manufactured housing in Area 200.)

Spectacular & Immaculate! This home is incredible! High ceilings, custom paint, formal living/dining room, great room with enormous kitchen, built-in custom media center, granite slab counters, stainless steel appliances, professionally landscaped front & back, stubbed in barbeque – what are you waiting for? This house is THE ONE! Gorgeous ceramic tile floors, central vacuum system, 3 bedrooms plus a den, 3 car garage. Stunning backyard with firepit – an entertainer’s delight!

This breathtakingly beautiful home is loaded with upgrades and is priced to SELL! The kitchen is big enough for 3 cooks to never bump into each other, the great room is big enough for Paul Bunyon! The patio out back features a gas stub for barbequeing, a fire pit, and top of the line audio is piped throughout the house. There are even speakers outside on the patio! Separate laundry room complete with cabinets and sink with counter, this home really does have it all and it looks like it’s never been lived in! Absolutely pristine! Decorator palette custom paint throughout. If you’re looking in De’Andrea you HAVE to see this house!

View this home’s Virtual Tour HERE!

This spectacular home is open Saturday, June 20th from 1-4pm. For more information or a showing on this property, please call Christy at (775) 881-8223 or Steve at (775) 690-0685.

At the dizzying height of the Carson Valley’s real estate boom, homeowners commonly put their homes on the market, then watched as the flood of offers — often at or above the asking price — streamed in. Buyers, meanwhile, waited anxiously for the seller’s verdict, preparing to heap tens of thousands of dollars on top of the original offer.

Now, the opposite is true. Potential buyers are now putting very low offers — often 20 to 40 percent less than the asking price — sometimes on multiple properties at the same time, a strategy that began a few months ago in metropolitan areas and is sweeping into our neck of the woods. Sellers, increasingly desperate to unload their property, are countering offers they once would have considered insulting. And as lowball offers become the norm, this back-and-forth seems to be accelerating the downward slide in prices.

The strategy of simultaneous lowball offers is a trend to prepare for, if you are a listing agent, or a seller. It used to be the reverse — one seller had multiple offers for one home. Now, one buyer has offers on several homes.

These buyers are no longer just looking for a good deal. They are predatory buyers. And with only 18 homes selling in the Carson Valley last month, they have good reason to behave this way.

At the heart of this behavior is the fear that prices will continue to drop. It almost scares the buyer to know they can get it for such a low price. They think, ‘If I can get the seller to come down to this price, what does that mean? Maybe I should wait.’

Lowballing or not, buyers’ stubborn refusal to pay listing prices – and the general lack of buyers actually purchasing – is have a definite impact on the market. Perhaps in recognition of this fact, more and more agents are encouraging sellers to consider offers at percentages that would previously have been considered ludicrously low.

It may seem insulting to consider such a low offer, but at the same time, it’s all about creating a dialogue. Any time you have someone who’s interested, you do the best you can to play nice and negotiate the deal.