May 2011 Market Condition Report

The May 2011 Market Condition Report indicate both SFR and Condo supply are very constant in this period and showing a slight positive tendency. This illustrates that once properties are moved off the market either as a pending sale or a failure, these properties are replaced by new supply.

Notice in the graph to the right the pronounced nature of the slope of the trend line in the mid part of 2011. Beginning in May 2009, the market made an attempt to stabilize the price schedule.

However, the level of demand relative to supply appears to be insufficient to maintain the current price level or to cause an increase, result in a slumping curve in the graph. There is not way to determine how long this situation will continue. Even though there has been some degree of price stabilization in the condo price schedule, this may be short term.

 OVERVIEW: Both SFR and Condo supplyare very constant in the current range with slight positive propensity. This means that as properties are moved off the market by either becoming a sale pending or a failure, those properties are being replaced by new supply. At the same time, properties in escrow continue to build in a slow methodical way. This implies that the level of closed demand will be increasing in the near term in small steps (no big moves). Prices for SFR continue very weak and in decline; Condo has steadied in the current range.

 WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): The absorption rate has stabilized with a slight negative propensity for both types. Tightening absorption rates signal a tighter market. However, current changes in the absorption rate are small and not significant.

 MARKET SPEED INDEX: Market speed (the conversion of listings to closings) has remained relatively constant for the last several months. The pace of the Reno area market is slow and steady with no big variations from month to month.

 PRICES: SFR prices continue to decline while Condo has stabilized in the short run. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph). Note in the price graph that the tail end of the trend lines shows a definite decline. Notice also that the above mentioned erratic nature of the price curve is more is less pronounced and more predictable in the latter time periods.

[Permission to distribute granted by First Centennial.]

Read the full May Market Condition Report.

For more information on the real estate market in the Reno-Sparks area of Nevada, please contact us.

Rick Lund

www.ricklund.com

www.ferrari-lund.com

April 2011 Market Condition Report

The Market Conditions Report for April 2011 shows that both SFR and Condo supply are very constant in the current range like they were in March 2011. This would indicate that as properties are moved off the market either as a sale pending or a failure, these properties are being replaced by new supply.

An encouraging note is that properties in escrow continue to build, implying that the level of closed demand will be increasing in the near term. However, prices continue to be very weak for both SFR and Condo properties and these declines are somewhat more pronounced than other areas surveyed.

 OVERVIEW: Both SFR and Condo supply are very constant in the current range, as they were the month before. This means that as properties are moved off the market by either becoming a sale pending or a failure, those properties are being replaced by new supply. At the same time, properties in escrow continue to build. This implies that the level of closed demand will be increasing in the near term. Prices continue very weak for both types. These declines are somewhat more pronounced than other areas surveyed.

 PERCENT SELLING: Very constant in the current range.

 WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): The absorption rate is on the decline indicating that the market is tightening slightly—more so for SFR than Condo. This tightening effect needs to continue for sustained time in order to affect the current trajectory of prices.

 MARKET SPEED INDEX: The market is moving slowly but the pace is increasing in small steps from month to month. Expect this continue. This increase will be difficult to discern at the street level in the short run.

 PRICES: SFR and Condo price schedules continue to weaken but the pace of decline has increased. SFR has become more pronounced in the short run. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph). Note in the price graph that the tail end of the trend.

[Permission to distribute granted by First Centennial.]

Read the full April Market Condition Report.

For more information on real estate in the Reno-Spark area of Nevada, contact us.

Rick Lund

www.ricklund.com

www.ferrari-lund.com

March 2011 Market Condition Report

The March Market Condition Report for the Reno-Sparks area shows a slow increase in the real estate market in Reno-Sparks NV. The following overview is available in this report:

OVERVIEW: Both SFR and Condo supply are very constant. This means that as properties are moved off the market by either becoming a sale pending or a failure, those properties are being replaced by new supply. This implies that whatever price trend is currently in effect is likely to continue. Closed SFR demand increased significantly over last month while Condo demand was relatively unchanged. Properties in escrow are on the increase at a slow pace. Median price for both types is declining at a quicker pace. Prices are very weak.

 PERCENT SELLING: Increasing slowly—gained 5 points over last month. This is a reflection of an increase in closings and a decline in the rate of failure.

 WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): Absorption Rate is declining for SFR and steady for Condo. A declining rate signals a tightening market in terms of supply and demand. In order to affect prices, this tightening would need to continue over a prolonged period before prices would react.

 MARKET SPEED INDEX: The market is moving slowly but speed is increasing in small steps from month to month. Expect the pace of the market to increase slowly. This increase will be difficult to discern at the street level in the short run.

 PRICES: SFR and Condo price schedules continue to weaken but the pace of decline has increased. Condo has become more pronounced in the short run. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph).

Read the full March 2011 MCR report.

[Permission to distribute granted by First Centennial.]

For more information on real estate in the Reno-Spark area of Nevada, contact us.

Rick Lund

www.ricklund.com

www.ferrari-lund.com

February 2011 Market Condition Report

The February 2011 Market Condition Report for the Reno-Spark, NV real estate market indicates that the market is slowing slightly. To summarize:

 OVERVIEW: Both demand and supply very constant. This is a usual pattern at this time of the year. Properties in escrow are on the increase which signals an increase in closings in the next 30-45 days. SFR median price continues to weaken while Condo price, which was holding is now beginning to slip.

 PERCENT SELLING: Increasing slowly in the short run. As a rule of thumb, a typical non-REOseller has about a 40-60% chance of closing in today’s market. REO has about a 70-80% chance of closing.

 WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): Absorption Rate is steady and hovering in the current range (give or take 3-4 weeks). No clear trend has emerged other than slightly up and down from month to month. A steady absorption rate signals that underlying demand/supply is not changing. This, in turn means that no big shifts in price are in the offing.

 MARKET SPEED INDEX: The market is slowing slightly. Expect the pace of the market to increase slowly as Spring approaches. However, in the near term listings are converting to closings in a slow and sluggish manner.

 PRICES: SFR and Condo price schedules continue to weaken, condo has become more pronounced in the short run. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph). Lately, however, there is more of a tendency to decline than rise. Average Price for three counties can be reviewed in the table below. Peak values (SFR) and current values are highlighted.

Read the full Market Condition Report for the Reno-Sparks real estate market.

[Permission to distribute granted by First Centennial.]

Rick Lund

www.ricklund.com

www.ferrari-lund.com

January 2011 Market Condition Report

The January 2011 Market Condition Report for the Reno-Sparks NV real estate market gives the following indications:

 OVERVIEW: The pace of the market has slowed from last month. Supply has increased slightly while demand has backed off marginally. This is a usual pattern at this time of the year. Properties in escrow are on the increase which signals an increase in closings in the next 30-45 days. SFR median price continues to weaken significantly while Condo price is holding at current levels.

 PERCENT SELLING: Increasing slowly in the short ru

n. As a rule of thumb, a typical non-REOseller has about a 40-60% chance of closing in today’s market. REO has about a 70-80% chance of closing.

 WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): Absorption Rate is steady and hovering in the current range (give or take 3-4 weeks). No clear trend has emerged other than slightly up and down from month to month.

 MARKET SPEED INDEX: The market is slowing slightly as is usual. Expect the pace of the market to increase slowly as Spring approaches.

 PRICES: SFR and Condo price schedules continue to weaken, but SFR is much more pronounced. Prices are erratic from month to month and seem to gyrate in a narrow range (see History of Median Sale Price Graph). Lately, however, there is more of a tendency to decline than rise. Average Price by city and year can be reviewed in the table below. Note the trend that estimates the dollar value of the declines per year.

Read the full Market Condition Report for the Reno-Sparks Nevada real estate area.

[Permission to distribute given by First Centennial.]

Rick Lund

www.ricklund.com

www.ferrari-lund.com

Sale of Pfizer Inc distribution center to Brightpoint in Reno

A significant transaction -- more so than the $11.5 million sale amount -- brings Brightpoint, a third-party logistics provider for wireless communications companies, back to Reno. More than that, it brings 79 new jobs to Northern Nevada.

The sale of this 263,924-square-foot building makes this the largest transaction in two years in the Reno-Sparks area, and the economic impact is expected to generate $9.58 million in the region during the first year alone.

With one is every 131 homes in Reno-sparks being a foreclosure, how the economy performs is what will turn this market around according to the Center for Regional Studies at the University of Nevada, Reno.

While the sale of the Pfizer facility will not turn the economy around on its own; this is an important step in helping to positively affect the local economy.