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)