Don’t be frustrated by rising home prices
July 6, 2015
Homebuyers in Washoe County may feel caught between rising prices and low inventory, but that should not keep them out of the market, recommended the president of the Reno/Sparks Association of Realtors in the association's May 2015 report on the sale of existing single-family homes.
"Homebuyers who have been on the sideline should consider making a move to buying a home soon before interest rates get too high," wrote Dave Hansen, RSAR 2015 president and a Realtor with Coldwell Banker Select Real Estate.
"Mortgage rates are showing signs of inching up. The 30-year fixed-rate mortgage is up almost a half of a percentage point since mid-May, averaging about 4.125 percent. Economists had predicted we would begin to see an increase in interest rates by mid-year and they appear to be right."
For sellers, the housing market looks good.
The RSAR reported that in May the median price of existing single-family homes in the county averaged $284,900, which was an increase of 19 percent from May 2014 and a 5 percent rise from April 2015.
Meanwhile, the number of homes sold in the county remained flat at 567 for May and April 2015, but a 4 percent increase compared to May 2014.
Recommended Stories For You
The Months Supply of Inventory, or MSI, was 3.0 in May, down from 4.1 a year ago. The National Association of Realtors describes a balanced market as between 5 and 7 months' supply.
Reno, which includes North Valleys, recorded 368 sales of existing single-family homes, which was an increase of 5 percent from last year and a 5 percent decrease from April 2015. The median sales price in Reno was $287,000 — a 21 percent increase from May 2014 and an increase of 4 percent from the previous month.
Sparks, including Spanish Springs, recorded 182 sales of homes in May — a 3 percent increase from May 2014 and a 12 percent rise from the previous month in April 2015.
The Sparks median sales price for an existing single-family residence in May 2015 was $275,000 — a 16 percent increase over the same month a year ago, and a 6 percent rise from April 2015.
Farther east, Fernley, which is in Lyon County, recorded 42 sales of existing single-family homes in May — a decrease of 29 percent from last year in May 2014 and a 24 percent decrease from the previous month in April 2015. The median sales price at $168,000 reflected a 12 percent increase from May 2014 and a 1 percent decrease from last month.
In other details from the RSAR May 2015 report:
The number of existing single-family homes sold in Washoe County in May marked the highest total for the month since May 2005 during the real estate boom, according to the Reno/Sparks Association of Realtors report.
The existing condominium/townhome median sales price for May 2015 in Reno was $145,000 — a 59 percent increase from last year.
The existing condominium/townhome median sales price for May 2015 in Sparks was $69,000 — a 16 percent rise from last year.
The median price on bank-owned properties at $208,000 was down 0.4 percent compared to April 2015 and up 8.6 percent compared to a year ago.
The median price on short sales at $215,000 was down 2.7 percent compared April and up 8 percent compared to a year ago.
The average days on the market was 92 days, the same as in April, and down 9 percent compared to May 2014 when it was 101 days.
The number of new listings in May was down slightly to 775, compared to 775 in April and 773 in May 2014.
6 percent of new listings were distressed. The allocation of new listings by special conditions (such as short sale or bank owned) represented 5 percent of the market — a 6 percent decrease comparing May to April, and down 9 percent compared to a year ago.