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
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