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2007 was the year that doom and gloom occupied every headline concerning real estate.  As always, some neighborhoods fared better than others, and in fact, some area sale prices appreciated. 

Bolstered by the continued strength in the luxury housing market, Reno NW Suburban and Somersett area,  Reno SW Suburban (encompassing Galena and the Mt. Rose Hwy Corridor),  and Reno Old SW increased in overall sale prices.  Some of this effect is due to luxury homes coming onto the resale market, and some is due to new homes being sold on the multiple listing service, but overall homes in these areas sold for more in 2007 than in 2006.

Since 2004 and the peak of the housing market, all neighborhoods which we track in the area have appreciated in value except for Spanish Springs S and Reno SW.  This means that homeowners who purchased a home before 2005 are still benefiting from the spike in home values.  The homeowners who are struggling and find themselves “upside down” on their homes are those who purchased in the spring of 2005 and in some cases, 2006, with little or no down payment.

In general, homes closer in to the city cores fared better than homes farther out.  Gas prices no doubt played a part in this switch from 2006.  Fernley, Palomino Valley, Red Rock and Rancho Haven all showed declines in sales and selling price.  Homes on acreage that were closer in to Rt. 395 such as Silver Knolls and Lemmon Valley fared better.

Homes located along Pyramid Highway showed more depreciation this year.  Especially hard hit were homes located around the new shopping mall which was completed this year, and homes on small lots north along Pyramid.  Homes on acreage in Spanish Springs only showed a small decline.

 

Reno NW Suburban & Somersett 24.9% Reno W Suburban & Verdi 4.8% Reno Hidden Valley 9.8% Reno SW Suburban  8.6% Sun Valley 10.5%  Spanish Springs S 13.3% Reno Old SW  9.7% Sparks E & Foothills 8.7% Spanish Springs W 16.8% Spanish Springs E 2.2% Sparks 11.7% Reno S Meadows 14.9% Reno Lemmon Valley 6.2% Reno SE 12.9% Reno SW 11.4% Sparks Suburban 5.3% Reno N Valley 11% Reno Golden Valley 19.2%  Reno Silver Knolls 4.6% Fernley 13.3% Palomino Valley 14.6% Reno Stead 7.9% Reno Donner Springs 12.3% Reno W SW  11.4% Reno North 7.5% Reno NW 12.8% Reno S Suburban  12.2% Reno Cold Springs 9.1% Reno Old S Suburban  5.8% Reno Red Rock & Rancho Haven 39.9 All data courtesy Reno Sparks Association of Realtors

Average Sale Prices of all homes sold on the Multiple Listing Service
for the Years 2004 through 2007

*Net Change is calculated in dollar difference between 2006 & 2007 averages

All data courtesy of the Reno Sparks Association on realtors^®

Do you know that old saying in real estate- "location, location, location?"

Here is graphic evidence that some locations are in fact better than others.

It pays to buy even the least expensive home in the best neighborhood!