Our first look at the 2008 housing numbers for Washoe County revealed no change in the downward trend of single family home sales and sales prices – there were 64% fewer single family home sales in January 2008 compared to a year ago, and the median sales price was 13% lower. Looking for the bottom? We haven’t hit it yet, but as I pointed out last month, the 10% price decrease experienced in 2007 is not that pronounced or dramatic when viewed in light of the tremendous run up in values from 2002-2005. Plan on another year of moderate decreases in home values before things begin to settle down in the Truckee Meadows.

Condos, again, showed some pricing strength in January, increasing an average of 8.4% from the year before. This is good news for the area and demonstrates that there is some semblance of stability in the market. With several new condo projects set to break ground in 2008, this type of product may fill a void in the marketplace created by the battered single family market.

Foreclosures more than doubled in January from the previous month – there were 177 homes seized by the banks in January, compared to 83 in December and only 29 in January 2007. Bank owned properties are likely to keep increasing through most of 2008 as more adjustable rate mortgages made in the past few years begin to adjust upward, pushing many people’s mortgage out of reach. Although the overall percentage of homes in foreclosure is relatively small compared to the total stock of homes, they are significant because they show up on the market as inventory being offered at cut rate prices, which helps drive overall market prices down. So long as foreclosures are on the rise, it’s going to be difficult for prices in the rest of the market to gain enough traction to start climbing back up.

For more information regarding the local real estate market, please check out our website at www.nvdata.org and scroll through the free data and downloads section. The Center for Regional Studies is an economic development partnership between the Nevada Small Business Development Center and the University of Nevada, Reno.