The Carson City real estate market continued down the slippery slope for September. The good news was that 41 homes sold in Carson City in September. That’s almost twice the number of homes sold during August and gives the Carson City real estate market a return to a more normal volume – at least normal for the last 18 months.

The bad news is the median sales price for the month of September slid to a new low of $231, 600. That’s the lowest median sales price in the last 16 months. Price per square foot also hit an all time low as well at $155.65.

What’s the ugly, you ask?

While the number of homes on the market has dipped slightly to 307 as of today, 47 of those 307 are either bank-owned properties or short sales. That means distressed properties account for 15% of the total properties for sale in Carson City, and that’s an all time high.

The bright spot in all of this is that the number of properties on the market has reduced from one month ago by just under 50 properties. One month ago, the Carson City real estate market had 350 properties available for sale, 16 were bank owned and 33 were short sales. There were 62 properties under contract or pending. (Please see our post from September 5, 2008.) Today, inventory is down, but the number of short sales and bank-owned properties is up slightly, and the number of properties under contract or pending is 51.

This means the distressed properties are either not moving, or additional distressed properties continue to hit the market. Upon further examination, we found that 11 properties that sold in September were distressed. As long as we continue to see distressed properties come onto the market in Carson City, it will continue to be difficult for values to stabilize.

Gimme some good news, please! It’s a great time to be a buyer! Prices are way down, interest rates are reasonable, and despite what the media may have you believe, loans are still readily available. All you need to do is consider the late 1970′s, when interest rates were in the 16-17% range. People still bought and sold real estate. Historically, when the market produces a barrier to entry (like high interest rates), opportunities always present themselves. We are seeing more and more owners who are willing to provide financing to buyers who would otherwise not be able to obtain a loan, for some reason or another. What if you want to buy a property and owner financing is not available? Look to your regional banks and mortgage brokers to assist you in obtaining a loan. In most cases, regional banks and mortgage brokers were more conservative during the ‘exotic loan years’ and because of this, managed to shield themselves from losses associated with those exotic and unrealistic loans. They are not affected by the credit crunch affecting most larger, national banks today.

If you have questions about the real estate market, ask us. We can help you navigate the market and help you consider all your options, even if you’re not planning to buy or sell right away.