Summary:
- This past year was one of leveling median sales prices and an artificial stimulus of sales as a result of government incentives as indicated by the year-over-year statistics. We are cautiously optimistic that 2011 will be yet another year of stabilization of pricing and sales without incentives.
Fernley Homes Median Sales Price
- December 2010 median price decreased by 11.0% to $97,850 compared to $110,000 in November 2010.
- The median sales price has been relatively stable for the past eight months.
- The median price is down only 2.6% from the prior December, a significant improvement over prior year-over-year median price comparisons.
- Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.
Fernley Number of Homes Sold
- December ended the month with 32 sold transactions a decrease of 22% from the prior month, and may be attributed to the seasonal downturn.
- Sales were down 40.7% over the same period last year.
Fernley Homes Average Days on Market
- The average days on market for Fernley homes are up to 125 days, an increase of 12.7% from the prior month.
Fernley Homes Sold-to-asking-price Ratio
- December reported sales received an average of 97.7% of the seller's final asking price.
Fernley New Listings
- 42 new listings were taken in December compared to 51 in November, a 17.6% decrease from the previous month and a 8.7% decrease from the prior year.
- The percentage of "Distressed" new listings was down 4 percentage points from November. 74% of new December listings were distressed. The percentage of distressed new listings has been trending down for the past three months.
- Freddie Mac's and HUD's are included in "other" which are classified with bank owned REO properties.
Status of Pending:
- Active Pending - Short Sale represents 56% of the total active pendings; Active Pending Loan equals 7%; Pending No-show represents 32% and Active Pending call 5%.
Fernley Homes Months Supply of Inventory (Unsold Inventory divided by Sales per Month)
- As of December 31 there was 6.5 months of inventory based on the December sales rate.
- The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.
- Unsold inventory includes Active Pendings. This method of reporting month's supply of inventory follows the industry standard of including all pending sales in the active inventory.
Conclusion:
- December sales dropped backed to 32 units, a classic winter slowdown as the market performs more normally without the artificial stimulus of government incentives.
- December median sales price is down 11% from the prior month. In the year-over-year number, we saw a 2.6% decline. Looking at the prior three December year-over-year declines, this decline was significantly smaller.
- December's percentage of distressed listings decreased 4 percentage points to 74%. The percentage of distressed new listings has been trending down for the past three months.
- Fernley inventory levels remain at a balanced market, moving to a mild seller's market.
- Mortgage rates remain in the "fabulous range", up a little from the all time lows of earlier in 2010 but still outstanding. Current predictions are for rates to slowly creep up in the coming months so the news of possible higher rates could spur sales.
- The key indicators for the coming months are the new pending sales number pacing the sales numbers to control inventory levels and market absorption numbers at balanced levels.
To read the full report complete with graphs and charts and 5 year history Fernley Market Report December 2010.
Market report data courtesy of Northern Nevada Regional Multiple Listing Service.
To read November 2010 report and all the others.
