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Reno,Sparks & Carson Real Estate Market: Who's Number One?

Superb photo by: Christa Jane

About: A few questions came into mind  two days ago while I was browsing through some real estate stats at the office:  ' how is the real estate market of Reno,Sparks & Carson City compare to each other?'

And 'who is holding up best amongst the three major cities of Northern Nevada?'

Thank God for technology, it is not as hard as it used to to chase after these questions.  And chase I did. It was enlightening. 

We will compare the LTM vs PTM:

LTM- last twelve months
PTM- previous twelve months

WIIFM (what's in it for me?): 

If you are like me I get confused by the countless opinions,facts and real estate tidbits out there.  I used to think that the Sparks Real Estate Market was experiencing a deeper correction than Reno.  Then I switched (with some data backing this belief).  Sparks real estate was in a better shape.  'Oh I don't know anymore.' 

But this new data I uncovered delivers hope.  Compared to my past attempts to differentiate the Reno,Carson and Sparks real estate markets this is by far more authoritative.  It is true what they say, 'we learn as we go'.

Highlight(s): 

• Sparks home inventory increased by  2.76%, while Reno and Carson also experienced higher number of homes in the market.  This is a positive sign contrary to popular belief. 

          Confident sellers play a vital part in a healthy market.  Wait 'till median
          prices catch up.  By simply looking at these factors (supply and demand,median  
          price) rest assured you will have a huge edge in determining if the market has
          indeed bottomed.

Graph(s):

Percent Growth- $ Volume

 

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Percent Growth- # Units

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Reno,Sparks & Carson Median Prices. (what is median price?)

 

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Community Links:

• City of Reno
• City of Sparks
• City of Carson

Number of updates: 7'th
Updated: Nov 17,2008
Source: Multiple listing Service
Next Release Time:  Dec 17,2008 (every 17th of the month)
*Residential homes site/stick built

Foreclosed Homes in Reno: An Easy To Understand Report(updated: Oct 16,2008)

Picture by: mortgage foreclosure solutions

"SOLD!"

Foreclosures have been selling like pancakes (see: 2nd graph) since November of last year.

I'm no longer surprised when my buyer's offer for a foreclosed home is in competition with two others. 

Once the foreclosures are priced right it is getting harder and harder to get a deal below asking price (I have made three offers above asking price).  Even before we show the foreclosed homes to our client, the home gets an offer the same day!

And it makes sense. Prices of homes have gone down to the point where more and more people can afford it.  Many of them have waited patiently for this time to come- and believe me, they are making offers left and right.

I want to show you what's been happening in the past year.  If you're willing to do a little bit of homework and an ounce of hard work.  Foreclosures can be a great deal!

Hope it helps:

Reno Home Foreclosures: Reno,Sparks. Washoe County NV
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Reno Home Foreclosures Sold: Reno,Sparks,Washoe County, NV
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Reno Home Foreclosures Median Values: Reno,Sparks, Washoe County,NV
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                                " Interested in looking at the complete list of foreclosed homes in Reno? Call Joe (775-338-7653) today for a no hassle-no pressure 10 Minute phone meeting!"

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Updates: 2nd

"If you are thinking of buying a home in Reno and Sparks at the $150,000 to $200,000 price range you are very smart"

I have something to say to you patient reader..

If you are thinking of buying a home in Reno and Sparks at the $150,000 to $200,000 price range you are very smart.

I imagine you as the patient buyer who have been waiting for years now.  You watched almost enviously as your friends and family got in the market a few years ago.  There were forty-three of you last month ( a meager six in September 2007) who got in the market.

(Keep in mind that the graphs are only for the $150,000 to $200,000 price range for Reno-Sparks.)

Reno units sold 2006-2008
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Reno median home price 2006-2008
(click image to enlarge)

Sparks units sold 2006-2008
(click image to enlarge)

Sparks median home price
(click image to enlarge)

Suggested readings:

• The first market bottom in Reno real estate

• Reno market update: what's happening in the last six months?
  

• Reno real estate: demand

"This real estate market downturn would be like a long and unforgiving marathon"

 Jason harper

July 2005 was when the real estate market topped.  We just passed the three year mark. 

The silent question on our minds:   how long will this real estate bear market last? 

Experts can't agree on one time frame but most would say that based on the history of the market a real estate market downturn lasts 3-5 years. 

I couldn't help but wonder with the media going gaga over the market and more and more people having sleepless nights over their financial future: are we hitting the "it will get worst before it gets better" time line.  Are we right on schedule?

"This real estate market downturn would be like a long and unforgiving marathon" somebody once said.

Perhaps marathon runner Jason Harper's experience could shed some light to our questions.

I met Jason Harper not too long ago in Reno--one of the most fascinating human beings I have ever met in my life.  Last May he completed a 100-mile-run for the inner city Sacramento's roughest neighborhood. 

He was fighting to create awareness and support for the uninsured children of Oak Ridge Elementary school.  Eight hundred people watched him endure the intense heat (100 degrees) as he reached the finish line at (took him 29:35 hours). 

"Harper, 36, crossed the finish line on the playground of Oak Ridge at
29:35. Slightly dehydrated and exhausted, Harper's motivation never waned,
though his body did."

Notice what he said heading towards latter the part of his grueling run: 

 "At the sixty mile mark, I was very nauseous and couldn't hold much down."

I believe our current state in the Reno real estate market is not far from where Jason was when he was "very nauseous and couldn't hold much down."

Would it get worst? I would say More than likely.  But hold on, we must, friends.  We might be heading on the last leg--the hardest one at that. 

Our group have always believed deeply in Jim Stockdale's iconic statement " Confront the brutal facts but never lose hope that in the end we will prevail."

To Reno Home Buyers: How To get the best deal

Superb photo by: Maggie's World

You may be thinking..Negotiating is the agent's job right?

Yes.  But you have to help him too.  And just to be clear, I am not suggesting that you should be back seat drivers.  But helping us agents by offering different view points--even if it doesn't agree with us-- can help us arrive to a more balanced negotiating strategy.

One thing you can look out for as smart consumers is what I call "price range bias".  In a nutshell, when you find a house that you like, first thing you should look out for is the price range--is it in the $350,000 to $450,000 (if the asking price is $400,000). 

Then ask your agent if you can have a simple market overview of this price range.  Here it can get a little tricky, you don't necessarily have to demand what you see here in this blog(graphs,overview reports etc.).

Other agents have different ways of presenting the market.  They can show you a graph or even just raw numbers will do.  Bottom line is you should understand what is being presented to you, is the home prices in the $400,000 range going down or up? How's the supply and demand?

And it will make a world of difference in how you will approach the negotiating table.

A tale of two stories.

1) $150,000 - $200,000 (Reno)

Median price

Demand

Supply

Conclusion:  $150,000 - $190,000 market is strong.

2) $200,000 - $300,000 (Reno)

Median price

Demand

Supply

Conclusion:  You definitely have room to negotiate.  Median price and supply are still struggling while demand is picking up.

           "One picture is worth more than ten thousand words"

                                             -author unknown

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Do you want a professional and effective  negotiator? Call Joe (775-338-7653) today!

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Reno Homeowners: Housing Counseling Program Available!

A friend of mine sent me a flyer from the Washoe County Senior Law Project.  It's a program by our County that helps homeowners who are having trouble with their home payments.  I think it's something many people should look into.

Here's the ad:

Click here for full-view

Contact Information:

located at Washoe County Senior Center
1155 East  9'th Street (corner of 9'th and Sutro)
(775) 328-2592
Se Habla Espanol

Reno-Sparks (Washoe County) Sales Trends By Zip Code

 

"Numbers tell a story" a wise sage once said.  The secret in investing whether in stocks or real estate is the delicate balance of two things: facts and instinct. 

You don' necessarily have to be Donald Trump (too much of the 2nd) or Prof. Gerald Lambeau (victim of the first).  Life is two-dimensional and often, more-and that's what makes it beautiful.  When I applied this principle in investing it has opened a door for me that I never want to leave from.  It has made my job more exciting, kind and ultimately more rewarding. 

About this post: 

• If you are planning on moving to the Reno-Sparks area and you want to know the activity in the area you desire, this post is for you (divided by zip codes).

• If you live in the Reno-Sparks area and are planning on selling your home and you want to know how many homes have sold in the past year and at what median price, this post is also for you.

ZIP CODE	SALES	MEDIAN PRICE
89402	5	$1,860,000
89431	217	$207,350
89433	95	$220,000
89434	269	$254,000
89436	934	$297,700
89439	28	$373,775
89441	202	$316,475
89451	89	$1,140,000
89501	5	$380,000
89502	222	$244,200
89503	199	$242,594
89506	592	$233,825
89508	248	$243,525
89509	258	$350,000
89510	15	$445,000
89511	322	$631,250
89512	126	$225,000
89519	99	$501,209
89521	583	$330,000
89523	468	$325,682
89704	39	$366,831

More resources:

• Reno-Sparks supply and demand
• Hottest area codes in Reno

*This report is based on public data gathered between 7/1/2007 and 6/30/2008. 

*Information gathered by First American Title

 

Chase Nation: I'm Proud Of My Momma

I rarely advertise my own.  I'm deliberately disobeying my rule today.

When I was being recruited to join Chase more than a year ago, Craig King, Chase's COO, told me something I will never forget: " Joe, I can sit here for an hour and tell you how great our company is, which I'm sure you've heard from previous companies.  But to fully experience Chase you need to try us out even for just a month.  And you'll see what we're talking about"

So I did.  And he was right.  My latest evidence is the newest 'baby' project of our company: Chase Nation

Shari Chase is the President and CEO of Chase International, our real estate broker.  She along with the genius Diane Cohn cooked up Chase Nation whose sole purpose  is 'to be the place to talk about Reno-Tahoe real estate online'.  To accomplish this they have set some cool community guidelines 'Blatant advertisements are not allowed in blog posts and will be deleted without notice'. 

And people have flocked.  Currently we have 412 members and the site is barely a half year old.  People are hungry for good real estate information and chase nation wants to be 'the' place.

Craig King was right.  They will not settle for anything less than the best.

While other companies are cutting down extensively on their marketing and man power Chase decides to go the other way.  That's a genuine trailblazer. 

Good job you guys.

To my future trumpeter swans

Photo by: tootdood

                                            --------------------------------

"I understand the temptation is strong.  After a string of bad relationships the next available beauty surely seems like Phoebe Cates."

                                             ---------------------------------

Here's a preview of what goes on in my head before I wrote this post:

'are you just trying to be controversial (ouch)?

who are you to say that?

you think you're so smart huh?

what makes you think your better than the experts in the newspapers- in your industry?

how old are you again?

I have no bones to pick with anyone.  I'm really happy with what's going on in my business.  I have two deals in escrow and hopefully three more on the way. 

After a luke-warm January,February and March; April feels too good to be true.

I understand the temptation is strong.  After a string of bad relationships the next available beauty surely seems like Phoebe Cates. 

Let's not fall in love blindly my friends. It's too early in the ballgame. We can't relate the sudden pick up in the market with the overall health of our real estate market.  Especially in this time of the year (I'm going to show you why).

Let's not unreasonably blunt the painful edge of truth:  the market is not better than last year.

Quite frankly, I really don't think we are going through anything special aside from the fact that the weather is getting warmer and buyers are going out, business as usual, winter they hibernate; Summer they play.

No more no less.

Arrggggh! I hate it when I say that, I sound like one of those people.  I really don't enjoy giving you bad news.  This is my livelihood you know, I have no other job.  And just like you,  I yearn for the market to bounce back. 

But hold on to the truth we must.

This graphs gives me a bit of a relief:

Click Here For Full Page View  

To my future trumpeter swans: 'Never tire to question until the point of genuine understanding.'

2007 Reno-Sparks Year End Stats

www.luxuryrealestate.com/Sue
                                             Sue Lowe's current listings

In my years in real estate.  You get to meet people in the industry who'll just leave you in wonderment and think to yourself, ' I want to be like her someday'.  Sue is one of those rare birds.  I have seen her up close.  From how she stages her listings, her market knowledge, to the way she deals with her clients, to her dogged determination in making us desirable real estate professionals.  She is simply transcendent.  Her report on the Reno-Sparks market is my authentication.

There's only a handful of professionals who have reached what Sue Lowe has accomplished in her real estate career.  I am glad she is on my side.  She is one of the most outstanding real estate brokers in the United States.   Sue is based at Chase's Nevada/California headquarters.

Sue's Year End Report on the Reno-Sparks Real Estate Market: 2007 Reno-Sparks Year End Report (adobe reader required)