Sales surge amid falling prices

After a dismal winter, real estate sales in Carson City have picked up the pace during the summer.

"I think we are pulling out of our slump to a certain extent," said Kathy Tatro, Coldwell Banker Best Sellers.

According to Carson City Assessor's data, sales have started to catch up and even exceed what they were a year ago. Last month there were 41 properties sold, compared with 35 sales in June 2008. And it's far better than the six properties that changed hands in January of this year. The assessor's data does not break out commercial from residential sales.

Barbara Anderson of Realty Executives said the combination of first-time home buyer programs and foreclosures are leading to a lot of sales of less expensive homes.

"Sales have definitely picked up," Anderson said. "There's not as many looky-loos, and people are more serious about it."

But falling prices are a factor. According to multiple listing service data, the average sale price for single-family homes in Carson City, excluding condos and manufactured homes, has dropped 29 percent from prior year, down from $304,00 to $215,000. Total sales of homes listed on MLS for the first six months of this year is $31 million, compared with $52 million from the year before.

"Prices have been dropping rather dramatically over just the last six months," said Red Dalen with Trans-Action Realty, who has been crunching numbers from the local multiple listing service each month for the past six years. "For the average price of homes sold this year, you have to go back to 2003 to see those prices."

The west side of Carson City has fared the worst. The number of homes sold on the west side of Highway 395 has dropped 42 percent during the same period in 2008, with the average sold price declining 29 percent. The total dollar volume of sales was down 59 percent, signaling that the homes that did sell on the west side were smaller and less expensive than the year before.

By comparison, the number of homes sold on the east side was down only 4 percent, with prices declining approximately 24 percent.

Lyon County has seen a huge surge in homes sold, a 57 percent increase this year versus the first six months of 2008. But average prices have dropped 29 percent.

Douglas County appears to be doing better, Dalen said, with a drop of only 2 percent in homes sold, and a 15 percent drop in average price, down to $300,000 per home.

Reno also saw a big jump in sales so far this year, 42 percent, but prices have dropped 31 percent over the same period.

Manufactured homes in Carson City, down 21 percent, have not declined as much as site-built homes, according to Dalen's MLS data. Condos in Carson City are down 7 percent.

Tatro said there has been a lot of activity at the lower end of the market, though she said she has seen a couple of higher-end homes sell recently, too.

"People can only wait so long for things to happen," Tatro said. "I think we are through the worst of it, at least in Carson City. Buyers are getting more confidence, and interest rates are still low."

Anderson said some buyers are still waiting to see where prices go before jumping in. Tatro predicts Carson City real estate prices will bottom out by the end of the year, and they may stay there for a while.

"We are kind of unique because we didn't have a lot of new subdivisions," Tatro said, which helps keep inventory numbers down compared to other counties.