The Reno/Sparks Association of REALTORS® (RSAR) released its December 2007, 2007 fourth quarter and 2007 year-end reports on home sales in Reno and Sparks. Compared to December 2006, home sales last month in Reno were down 81 percent. Sales out of the Sparks area were down 63 percent.
The 2007 median sales price for an existing single family residence in Reno was $310,000 and $280,000 in Sparks. The 2007 fourth quarter median sales price for an existing single family residence in Reno was $310,000, and $273,450 in Sparks. In December 2007, the median sales price for an existing single family residence in Reno was $305,000, and $263,500 in Sparks.
All median sales prices are for existing “stick built single family dwellings” only and do not include condominium or new home sales.
In 2007, Reno had 1,810 existing home sales and Sparks had 830. During the fourth quarter in 2007, Reno had 341 existing home sales while Sparks experienced 193 existing home sales. In December 2007, Reno had 97 existing home sales, while Sparks had 55 existing home sales.
“Homebuyers, sellers, REALTORS®, lenders and builders alike are all asking if the real estate market correction has seen the ‘bottom,”’ said Wayne Capurro broker/owner of Capurro & Reid Real Estate and 2008 President of Reno/Sparks Association of REALTORS®. “The housing market cycle has four phases. Phase one is the bottom when real estate is a bargain. Phase two is when the process starts to climb and people notice these changes. Phase three consists of a strong demand driving home prices up making them over-valued. After prices peak and level off, phase four sees prices begin to fall along with the demand. People then hold off buying homes until real estate is under-priced again.”
“Although I believe we will see an additional five to eight percent decrease in median home prices in Reno and Sparks, there is good news in sight,” added Capurro. “We predict we will see the bottom of the correction after the first six to nine months of 2008 as we have reached the end of phase four. Then it may remain flat for a period of time before it slowly starts to rise back into phase one of the cycle. I am optimistic that will start in late 2008."