I haven’t posted in a long time but plan on getting back at it with weekly posts.
The new stats are out from RSAR… June 2017 Stats
Here’s an overview with some commentary…
- The median sales price rose 1.5% month to month to $340,000. Up $27,200 from June 2016.
- Reno’s median price is $360,000.
- Homes sold jumped 8.4% from May and 11.3% from June 2016
- The average price per sqft is $193 up from $179 in June 2016.
- Months supply of inventory is 1.5 months. That’s the lowest I have ever seen it.
Economist Dusty Wunderlich stated, RGJ.com, that 55% of residents cannot afford a house in the median sales price range.
The median income in Reno is $47,012 (Census.Gov) or $3,900 per month. A home at $340,000 with 10% ($34,000) down comes out to about $1,900 per month. That leaves about $2,000 left over for utilities, health insurance, food, savings, car payments, etc. For a low cash buyer, an FHA loan on the same property would be around $2,150.
Both scenarios leave little money after the mortgage and are outpacing rents (not by much).
So who’s buying?
- Selling buyers: They hit the market at the right time from 2008-2014 and have seen returns eclipsing $150,000 on their homes. This is now play money being used to get homes 1000+ sqft bigger, in a better neighborhood, with more upgrades for a similar payment.
- Our Western Neighbors: People selling their house in California for $600,000+ and not batting an eye at 2400 sqft for $450,000.
- Investors: I don’t see how the numbers work but I’ve noticed for rent signs on brand new $400,000+ houses the day after closing with a builder.
For more information on the housing market, buying or selling contact Ricky at (775) 750-1437 or Ricky@RickyBeach.com