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.)