July 2009 Carson Valley Nevada Real Estate Market Report

We had 58 home sales in the Carson Valley in July 2009, a 26% volume increase year over year when 46 homes sold in July 2008.

Here is a snapshot of our market indicators for July:

• 58 homes sold
• Average asking price is $374,596
• Average selling price is $347,528
• Average days on market is 182

So what is the absorption rate for the Carson Valley?

• There are 479 homes on the market as of 8/4/09
• 58 homes sold in July
• 479/58 = 8.26 months of inventory

The absorption rate for the Carson Valley continues to hold steady after tightening up in June. I had predicted we wouldn’t see single digit absorption rates until the third quarter but the market improved in June and continues to stand strong in July.

Of the 479 homes on the market, 28 are bank owned and 56 are short sales. That means that 18% of our market is distressed. With everything that we’ve heard in our market, we are seeing more REO properties hit the market, but the good news is that we are seeing multiple offers on every one of them. When priced below $175,000, the competition is stiff and sold prices are above listing prices. This is a good sign for our market, and we suspect that the competition will become even more fierce as we get closer to the December 1st deadline for the $8,000 first time homebuyer tax credit.

With the first time homebuyer credit expiring on December 1, 2008, there’s a big incentive for homebuyers to get out there and buy a home. Will it be extended? I believe it will be, but don’t bet on it! If you’re a buyer debating buying a home right now in Northern Nevada, don’t wait for these statistics to continue to trend upward. It may just cost you the house of your dreams.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley and outlying areas. Carson Valley photograph courtesy of ScottSchrantz – Flickr.com)