The latest home sales and foreclosure data for Washoe County has been updated and the reports are available on our website.
There were 43 new home sales in April, which was up 72% from the 25 sales in March, but still short of last year’s sales. For a market that was accustomed to selling several hundred new homes each month during the “good” years, this is quite an adjustment for local builders but will likely be the new reality that we all operate under for the next few years. Until the rest of the economy begins to stabilize — and I’m primarily referring to the JOBS market — it’s hard to see new home sales staging much of a comeback. Unemployment is still hovering at or near record highs, and with this many households either out of work or fearing for the stability of their jobs it’s critical that people start to feel more secure with their own economic outlook before we can expect to see other areas of the economy settle down.
For existing home sales in Washoe County, April marked the first month since June 2008 that year-over-year sales decreased. The market for existing homes has been propelled by a glut of low-priced bank owned or otherwise-distressed homes that have brought people out of the woodwork to scoop up the deals. Could April’s 22% decrease in sales from last year be a harbinger of cooling sales? It’s possible that the pool of qualified buyers in this economy has started to dry up, and that could be very bad news for all of the banks still sitting on a pile of unsold homes…and even worse news for the area’s median home price.
Foreclosures jumped in April after taking a little break in March — and these can be tricky to chart from month-to-month due to the volatility in the market and the constantly-changing Federal guidelines for distressed housing. Still, there were 75% more foreclosures in April compared to March, and 32% more compared to a year ago. At the same time, foreclosure resales tanked in April — down 61% from March and 48% from a year ago. This is a critical factor to monitor for the area. With record numbers of homes either falling back to the banks or being sold for less than what was owed, it’s vital that these “distressed” properties get absorbed back into the market quickly and not turn into neighborhood blight, which will impact other properties even more.
Washoe County has been hit hard by this recession, and although the worst seems to be behind us, there are clearly still some tough times ahead as the economy struggles to regain traction. To stay on top of changes in the economy, be sure to subscribe to our News and Announcements blog, and join us in the discussion forums at UNR’s Business Services Group portal.
