With end of incentive, home sales plunge

Home sales in Carson City fell 48 percent last month compared to June, according to regional housing data.

The news wasn't much better nationwide on Tuesday when the National Association of Realtors reported a 27.2 percent drop in sales of existing homes, a 15-year low despite some of the lowest mortgage rates in decades.

Carson City Realtor Bob Fredlund, with Coldwell Banker Best Sellers, said the Northern Nevada Regional MLS showed home sales in Carson City were up 19 percent overall compared to 2009, but he estimated about half of that activity was the result of first-time home buyers taking advantage of an $8,000 federal tax credit, which expired on April 30 and originally required the escrow process to be completed by June 30.

As a result, home sales in Carson City doubled in June compared to the same month in 2009, and down 49 percent in July compared to the previous year.

From June to July, home sales fell 59 percent in Dayton and 24 percent in Gardnerville, Fredlund said.

"Predictions for August do not look better," he said.

Dan Smith, the president of the Sierra Nevada Association of Realtors, said July's home sales do not necessarily suggest a new trend in the market.

"I think June's result is a one time spike in home sales and I think we'll see a general trending of single family residents in our area," Smith said

Carson City's inventory of homes has fallen to about 10 months. A healthy market is about three to four months, Fredlund said. The national supply is about 12.5 months, compared to a healthy market of about six.

Nationally, just 3.83 million units sold in July, down from the 5.26 million sold in June and down from the 5.14 million sold in July 2009.

The drop in July's sales was led by 35 percent plunge in the Midwest. Sales were down 30 percent in the Northeast, 25 percent in the West and 23 percent in the South.

The median sale price was $182,600, up 0.7 percent from a year ago, but down 0.2 percent from June.

Fredlund said Carson City's housing market could begin to rebound in the next four years as Moody's Economy.com recently predicted, given limited space to develop and a stable job market.

"We have to open our doors and make sure we're bringing in new industry and bringing in people who want to move to the area," he said.

• The Associated Press contributed to this report.