Reno Home Blog

Sparks Real Estate! Demand (updated)

"One of the many parks in Sparks"

Superb photo by: Duffy D. Duffy

About:  Number of homes sold in Sparks for the period of Nov 2005- May 2009.  If the Number of Homes For Sale show us the supply of homes in the Sparks real estate market, in this post we will be looking at the market's demand side.

WIIFM (what's in it for me?):  Our hope is that by showing you the supply and the demand of the Sparks real estate market you can have a bird's eye view of what's really going on in our real estate market.   

We have always carried with us the belief that the market's opinion is far superior than any of us so called 'experts'.  Hope this helps you in your decision-making.

Highlights:

• (May 2009) demand goes down by 16 homes, but demand is still strong (see graph).

• (Apr 2009) Another big jump in sales! (+ 17 homes from last month.)

• (Mar 2009) Sales, literally are off my graph's roof (see graph below).  Highest sales since December 2005!

• (Feb 2009) Sales up by thirteen homes!

• (Dec 2008) Sales jump by more than 31 homes!

• (Nov 2008) After a very good October, sales dipped back to eighty-seven homes sold in November 2008.

• (Oct 2008)  This was the farthest thing I expected to happen.  Amidst the economic turmoil and financial panic--three year high in homes sold in Sparks!  We cannot argue with the market.

• (Sep 2008)  Demand continue to go up, though slightly down from the early summer months .  Median price continues to slide.  If demand continues to go up it'll be a good indicator that a bottom is nearing.  Watch out investors!

Read past Highlights

 

Observation/comments:

• (May 2009) Opportunities are plenty in the $150,000 and below price range.  Look for low price to square foot ratios (ex: $70 / sq. ft)

• (Apr 2009) Highest demand since I started tracking data back in December 2005!

• (Mar 2009) Sales are sky rocketing.  Though median sales price is still hurting, this is a very encouraging sign that the bottom in prices might not be too far from us.

• (Feb 2009)  I see something  good happening, though the median price in Sparks is still going down, current sales is higher compared to the last few years(see: graph) if this continues the bottom might not be too far from us.

• (Dec 2008) I'm really encouraged by what I'm seeing.  Notice the current sales is at a similar level when I started gathering numbers back in 2005 (a very good year).

• (Nov 2008) After having amazing sales last month, demand drops.  But the overall trend is still positive, let's wait and see if this continues.

• (Oct 2008) Sparks demand is in a three-year high (since Nov 2005)!

• (Sep 2008)  If you're buying a home in the $210,000 and above price range, know that it is still a buyer's market.  Take your time, but be decisive once you find what you want that fits your budget and of course, your dreams.

Read past comments

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"Thinking of buying? Call Joe today for a no-hassle-no-pressure
talk about the home that's right for you.  Joe:775-338-7653"
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Graph:

      Click image for full-page view

Raw Numbers:

• May '09:  124
  

• Apr '09:  140
  

• Mar '09:  120
  

• Feb  '09:  103
  

• Jan  '09:  87

• Dec '08:  104

• Nov '08:  81
  

• Oct  '08:  120
  

• Sep '08:  100
  

• Aug '08:  99
  

• Jul '08:   106
  

• Jun '08:  104

• May '08:  99

• Apr '08:  103

• Mar '08:  64

• Feb '08:  53
  · 
• Jan '08:  51

• · Dec '07:  57

• · Nov '07:  57

• · Oct '07:  71

• · Sep '07:  76

• · Aug '07:  89

• · Jul '07:   94

• · Jun '07:  87

• · May '07:  91

• · Apr '07:   92

• · Mar '07:  94

• · Feb '07:  66

• · Jan '07:  65

• · Dec '06:  75

• · Nov '06:  79

• · Oct '06:   108

• · Sep '06:  114

• · Aug '06:  114

• · Jul '06:     98

• · Jun '06:   114

• · May '06:  96

• · Apr '06:   104

• · Mar '06:   110

• · Feb '06:  93

• · Jan '06:  77

•     Dec '05:  94

•     Nov '05:  100

 

*  Sparks Residential homes site/stick built

Updated: June 25,2009
Number of updates: 16'th
Source: Multiple listing Service
Next Release Time: July 19,20089  (Every 19'th of the month)

Sparks Real Estate In The last Six Months

Legends at Sparks Marina

Yesterday we checked in on Reno's real estate market. 

Now, let's see what's happening in the Sparks real estate market.  Sparks has been growing fast--residentially and commercially.

Though it wasn't spared from the real estate meltdown I won't undermine this area. What I noticed with this city is that through the ups and down of the real estate market, Sparks continuous to shine brightly. One of my favorite things about Sparks is the community works hard to gather the people through Summer sports leagues.

They just completed  Sparks Crossing.  And hopes to finish the Legends at Sparks Marina by next year. 

One of my friends used to brag that, "whatever you can find in Reno, we have here in Sparks." 

Sparks Homes For Sale; Median Price

Similar to what's happening in Reno.  Prices of homes continue to slide.  There's a lot of new homes in the area which can partly explain for the falling prices. 

Builders have deeper pockets and are able to afford steep discounts on their inventory.  One thing sellers need to learn from builders is that they are quick to respond to the market-- cutting their losses short if needed. 

Sparks Median Price Sold

As one may suspect, homes sold are still on a downward trend.  Buyers are looking for the best deal.  The average home sold in Sparks is nearing the $200,000 mark.

And banks, with all financial turmoil happening in their industry, are not making it easy to lend above $250,000. 

But this won't go on forever, I suspect that dark clouds are soon to pass us by.  And Sparks, with all her positive Spirit, will be one of the cities to lead Northern Nevada to positive territory once again.

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If you have more questions regarding the Sparks real estate market, you can reach Joe at 775-338-7653.

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Market: I'm KING!

Superb photo by: Johan Abdullah

Yesterday, While I was updating Sparks' real estate demand, I could hardly believe what I uncovered: demand of homes in Sparks is in a three-year high. 

Basically, since I began tracking the numbers, last month was the highest number of sold homes in Sparks!

And I won't really be writing this post if not for the fact that, ummm, we're in the deepest real estate recession since the great depression.  Turn on the t.v and the same harmony of voices you will hear saying, "we are in deep weeds."  And we are.  I'm not arguing that.  But hey, Sparks hit an all time high--how can that possibly be? hello?!

To tell you honestly, I have no great explanation for this.  What I do know is this yet again, this affirms the brutal fact that the market is a smarter than us.

Further reading:

• "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"

• Watch out for the Reno real estate market bottom!

• To Reno Home Buyers: How To get the best deal
  

To Sparks' First-Time Homebuyers: Do not miss this opportunity

Last week I had a big 'aha' moment. 

It was when we came up with the term 'hyper local'.  The concept of within market is another market.  Understanding  the Reno real estate environment is good.  But there is more.  You can dig deeper into price ranges ($200,000 - $300,000) or by area (South Reno vs North Reno).  And by getting acquainted with these data you can significantly cut down the avoidable financial risks in buying a home.  This is not rocket science and it's actually not hard to do this.

Last week we talked about a price range in Reno that I think have already bottomed.  In this post we'll see if it's the same case for Sparks' real estate market.

Sparks real estate:

Price range: $150,000 - $190,000

Time period: Two years (July 2006 - July 2008)

Median Price (sold)
(Click image for full view)

Number of homes for sale in Sparks
(Click image for full view)

Number of homes sold in Sparks
(Click image for full view)

As you have probably noticed both Reno and Sparks' reports looked very similar.

Bottom line: $150,000 - $190,000 price range has been stable the past two years.   Supply and demand has been going up (a very good sign esp. with the 2-year time span)

This is awesome news for first  time home buyers in Sparks.  One last piece of advice when buying in the $150k - $190k range.  Knowing that this market has a ton of demand it may be wise not to play it safe when making offers.  Make full price offers, even higher if needed.  You can be sure that competition will be present.

For Buyers in Sparks: Best Performing Areas

What's been happening in the different market areas in Sparks?
What area in Sparks has been most affected by the market downturn?
What area is holding up best?

Like what I said in my last post(buyers in Reno), there is no one winner-take-all.  But this can help you determine which part of Sparks is holding up best.  Knowing this information is vital, for it will give you a glimpse of what the future has in store for you in your desired area. 

Guys, take your time, analyze the specific areas you want.  But don't succumb to analysis paralysis.  Listen to the story the market is telling you, digest it, then one way or another you have to decide what you want to do based on your objectives not anybody else's. 

If you need more data, some advice or something is not clear to you do not hesitate to call me (Joe:775-338-7653) or Ian  (775-338-7649) for a no-hassle-no-pressure phone meeting.

And here are the winners ladies and gentlemen:

1. Percent growth # of units : Spanish Springs South

Percent growth- # units

2. Percent growth- $ Volume:  Spanish Springs South

3. Percent Growth- Median price:  Spanish Springs- West

Sparks New And Existing Home Sales: Sep 2007, Oct 2007 and Oct 2006

A charming home for sale st Sparks,NV

About: Sparks housing sales report.  The Sparks housing sales (new and existing homes) is still in a downward trend.  Home sales fell by -38.5% from Oct 2006 to Oct 2007.   

But once again notice the decline of home sales in Sparks (-38.5%) was less than the decline in Reno (Oct 2007 Vs Oct 2006: -49.7%).  New & Existing Home Sales In Reno

This is a big deal for me.  I've always had the  impression that buying a home in Reno might be a better idea than buying a home at Sparks ( thinking that home prices in Reno hold up better than Sparks).  But this is not the case if we base it from the hard facts presented in this post.

Here's my other post comparing Sparks Housing Sales vs Reno Housing Sales

Sparks (Single Family Residence Sales)	OCTOBER 2007	SEPTEMBER 2007	PERCENT CHANGE	OCTOBER 2006	PERCENT CHANGE(Oct 07 VS Oct 06)
New & Existing Housing Sales	104	114	-8.8%	169	-38.5%

You can find the complete housing report of the Washoe County Assessor HERE

Information provided by: http://www.nsbdc.org/what/data_statistics/

Housing Sales Sparks,Washoe County NV: 3rd quarter 2007

freedigitalphotos.net

Sparks home sales is following Reno's footsteps basing it on number of sales from last quarter and the current one.  (3rd quarter 2007 VS 2nd quarter 2007)

New home sales is down -25.5% while existing home sales is down a more manageable -6.4%.  Like Reno, new home builders in Sparks have been cutting down prices on their inventory.  But is it really helping? number of sales is still going South.

If it's worth mentioning, I remember when the national board of Realtors were saying in 2006 and early 2007 that the market bottom could happen in late 2007 or early 2008.  I remember thinking that it seems too optimistic.  On the other hand CEO's of major home builders in the country were telling the media that no bottom is in sight and that they are expecting a longer real estate fall.  Were the builders protecting themselves from the unrealistic expectations of their shareholders? maybe. But at that time it wasn't hard to believe what they were saying.  Based on our own research they were telling the truth. As we can tell now. 

The lesson: when in a real estate market correction builders tend to be more honest.

Call Joe (775-338-7653) or Ian(775-338-7649) if you need more in depth analysis of the market.  We would be glad to supply you with information regarding the market.

source: Washoe County assessor

Sparks Single family Residence Sales: 2006 VS 2007

SPARKS New & Existing Home Sales 2006 VS 2007

Month	2006	2007	Percent Change (# of sales)
January	129	104	-19.4%
February	135	119	-11.9%
March	208	152	-26.9%
April	221	131	-40.7%
May	176	158	-10.2%

Source: Washoe County Assessor

Highlights: Between Jan-May 2006 and Jan-May of 2007, the Sparks Single family residence sales was down on average -21.82% (add the 5 months together and divided it by 5) while  Reno fell by an average of -26.48% in the same time period. All this time I thought Reno was holding up better than Sparks. I am wrong- if I was to base it on this data.

Observations/ Comments:

• The Sparks market compared to the Reno market has significantly lower inventory of homes.

• We are experiencing fewer home sales in the Sparks area compared to last year(2006)
  

Sparks Housing Sales-2007

Highlights: 

Basing it from Jan 2007 to May 2007, the Sparks home sales market is moving sideways. Even  gaining an upward momentum from April to  May. I wonder if this sideways movement will continue. Time will tell. 

For some reason while creating this graph I was painting a different picture in my head of how the Sparks market is performing this year. This just tells us that numbers are better than opinions/assumptions.

Observations/Comments:

• Based on this graph, In 2007 (Jan-May), Sparks home sales is moving steadily in neutral ground. Time will tell  if this will be sustainable. Keep observing what the market will do.

•   If you were to base it solely on this data It is not wise to conclude that the Sparks  market has bottomed. Still too early to tell.
  

Source: Wahoe County Assessor