2nd Quarter 2016 Market Report from the Market Leader

Luxury Trends
2nd Quarter 2016 Market Report from the Market Leader
Q2 2016
DicksonLuxury.com
COVER PROPERTY FEATURED:
430 Anitra Drive, Reno NV 89511
$3,939,393 MLS #140015612
Welcome
TO OUR Q2 2016, LUXURY MARKET REPORT.
Welcome to Dickson Realty’s 2016 Luxury Newsletter for the 2nd Quarter. I received Ty Cobb’s NNN PoliticoEconomic Update of July 10, which states: “Haven’t heard this level of optimism for some time on the U.S. economy!
As one expert noted, This is the golden age to be a U.S. consumer, he said, pointing to signs of a strong economy,
solid jobs growth, relatively weak inflation, a strong dollar and the ability to borrow money cheaply!”
All of that is true, so why did sales of luxury homes in the second quarter of 2016 go down by 10 homes from 2015, and
average sold prices drop 13.5%. Even though we did see price per square foot remain steady and the average days
on the market drop slightly, we still have a four year supply of homes in the luxury market priced above $1,000,000.
Why do I remain optimistic in light of these facts?
Dickson Realty conducted a survey of agents representing buyers in the luxury market. We received a response from
79% of them. What we found is 61% of the buyers surveyed are local buyers, moving up. I think it is a positive sign
that the people already living here are feeling confident in our local economy. What we are not seeing are the senior
executives or entrepreneurs moving into our region...yet! But, with EDAWN and the state of Nevada doing such a
good job attracting companies to our area, I believe that will still happen.
Over 92% of home buyers use the internet when searching for a new home. Dickson Realty has invested in proprietary
internet based marketing systems that produce results. We are receiving remarkable web traffic from other states and
areas, which is usually a fore runner of the coming wave.
For more detailed information on luxury home sales please read my article in this edition of Luxury Trends, or visit
www.DicksonRealty.com/LuxuryTrends
Dickson Realty has been marketing luxury homes since before most of our competitors existed in the region. With
our international reach and proven track record, I hope you will consider a Dickson Realty agent to help you buy or
sell your luxury home.
—CEO Dickson Realty
January - June 2016 vs. 2015 Luxury Home Averages
sales over $1 million*
-10
-13.5%
+.48%
-14.3%
TOTAL
UNITS SOLD
AVERAGE
SOLD PRICE
AVERAGE
PRICE PER SF
AVERAGE
DAYS ON MARKET
2016: 38
2015: 48
2016: $1,369,684
2015: $1,583,601
2016: $286.18
2015: $284.81
2016: 239
2015: 279
*Source: Northern Nevada Multiple Listing Service (NNRMLS) transaction volume for transactions over $1 million in all Reno/Sparks areas (Area 100), January 1 - June 30, 2016, as of July 6, 2016.
Top 5 Luxury Real Estate Companies
January - June 2016 Market Share for Reno/Sparks Homes Sold Over $1 Million*
DICKSON REALTY
32.29%
Ferrari-Lund 8.73%
RE/MAX Affiliates 8.60%
DoMore R.E. Drakulich 8.41%
RE/MAX Professionals 4.58%
Active Listings over $1 Million
$2,500,000
and higher
17%
$1,000,000–
$1,499,999
43%
$2,000,000–
$2,499,999
YTD Sold over $1 Million
$2,000,000–
$2,499,999
$2,500,000
and higher
5%
3%
14%
$1,500,000–
$1,999,999
$1,500,000–
$1,999,999
24%
$1,000,000–
$1,499,999
68%
26%
$1,000,000– 71 Active Listings
$1,499,999 $1,239,087 Average Price
$1,000,000– 26 Sold Listings
$1,499,999 $1,157,230 Average Price
$1,500,000– 42 Active Listings
$1,999,999 $1,718,390 Average Price
$1,500,000– 9 Sold Listings
$1,999,999 $1,612,222 Average Price
$2,000,000– 23 Active Listings
$2,499,999 $2,323,990 Average Price
$2,000,000– 1 Sold Listings
$2,499,999 $2,450,000 Average Price
115 Average Days On Market
192 Average Days On Market
224 Average Days On Market
$2,500,000 28 Active Listings
and higher $4,030,403 Average Price
243 Average Days On Market
153 Average Days On Market
211 Average Days On Market
601 Average Days On Market
$2,500,000
and higher
2 Sold Listings
$2,500,000 Average Price
1,304 Average Days On Market
*Source: Northern Nevada Multiple Listing Service (NNRMLS) transaction volume for transactions over $1 million in all Reno/Sparks areas (Area 100), January 1 - June 30, 2016, as of July 6, 2016.
Significant Dickson Realty Sales in 2016
SOLD $2,500,000 Seller Representation by Dickson Realty SOLD $1,750,000 Seller Representation by Dickson Realty
SOLD $1,510,000 Seller & Buyer Representation by Dickson Realty
SOLD $1,328,000 Seller Representation by Dickson Realty
South Suburban
Arrowcreek
Montrêux
Arrowcreek
SOLD $2,450,000 Montrêux
Seller Representation by Dickson Realty
SOLD $1,525,000 Montrêux
Seller Representation by Dickson Realty
SOLD $1,450,000 Seller Representation by Dickson Realty
SOLD $1,285,000 St James Village
Seller & Buyer Representation by Dickson Realty
Montrêux
Significant Dickson Realty Sales in 2016
SOLD $1,250,000 Seller & Buyer Representation by Dickson Realty SOLD $1,175,000 Seller & Buyer Representation by Dickson Realty
SOLD $1,100,000 Seller & Buyer Representation by Dickson Realty
SOLD $1,065,000 Seller Representation by Dickson Realty
SW Reno
Arrowcreek
Montrêux
Montrêux
SOLD $1,250,000 Seller Representation by Dickson Realty
SOLD $1,125,000 Seller Representation by Dickson Realty
SOLD $1,075,000 Seller Representation by Dickson Realty
SOLD $1,025,000 Seller Representation by Dickson Realty
Galena
Arrowcreek
South Suburban
SW Reno
What is Really Happening in Luxury Sales?
an in-depth study of the market by Nancy Fennell, President of Dickson Realty
It was 1987 when Kathy List of Dickson Realty sold the first $1,000,000 home that had ever been sold in the area and Dickson
Realty has been the luxury market leader ever since. Our local market expertise is combined with targeted global marketing
campaigns and a long-standing affiliation with Luxury Portfolio International to attract affluent luxury home buyers around the
world.
In 2005, our area had the largest number of sales (166) over
$1,000,000 and I am sure it is no surprise that in 2012 we had
the lowest number of sales (25) over $1,000,000 as the market
bottomed out right before the economy started turning around
for the better. To the right is a graph that charts the number of
sales over $1,000,000 since 1995.
That brings us to 2016, when many have expected and hoped
that well-compensated executives from the highly publicized
companies EDAWN has brought to our region would purchase
luxury homes and settle into our community.
Sales in the first half of 2016 were steady but we are about 10
homes down from the number of homes we sold in the same
period last year. We also see the average sold prices have
dropped about 13.5% from last year, while the average price
per square foot has remained fairly steady. The good news
is average days on market has dropped slightly. Last year at
this time there were 156 homes and condos on the market
priced over $1 million. This year, we have 164 available for
purchase. In 2015, there were 48 sales by the end of June
and this year we have sold 38. The differences in numbers
made me decide to drill down into the data to see what was
different and who was purchasing these luxury homes.
What I was most interested in was where our buyers were
coming from. Just as we discovered in a similar study about
home sales below $1,000,000 earlier this month, we found
that buyers of luxury homes are not coming from out of the
area. I spoke to 30 of the agents that represented the buyers
of properties sold in the first half of this year.
Continued on page 7...
Source: Northern Nevada Regional MLS (NNRMLS)
What is Really Happening in Luxury Sales?
an in-depth study of the market by Nancy Fennell, continued..
...Continued from page 6
I would like to thank the 30 professional REALTORS® I was able to reach for sharing general information about their clients
that allows us to better pinpoint who is purchasing luxury properties in our region.
Where did the buyers come from?:
• 61% of the buyers in the first half of the year were local (78% of these were under 50 years old)
• 18% relocated from outside the area (57% of these were under 50 years old)
• 21% were other or unknown
The buyers who relocated to our region from another
area did so to start or join a medical practice, be near
family, retire in Nevada for tax purposes, or move
their small business to the region.
So, just like our previous study, we haven't yet felt
the impact of a lot of executives or entrepreneurs
moving into our region yet. In speaking with two of
the most quoted firms moving businesses into our
area, they do not expect to have more than 1 or 2
executives moving here to purchase homes over
$1,000,000. We hope the other firms moving here
have a different demographic to help us absorb the
nearly four-year level of luxury home inventory.
Dickson Realty has been building our international
reputation in luxury home sales since before most of
our competition in the area existed. I hope you will
give us the opportunity to speak with you if you are
thinking of selling your home or if you know someone
moving into the area.
Current Dickson Luxury Listings
Click on the MLS number to view each listing online.
$4,500,000 150002576
$3,939,393 140015612
$2,800,000 160003021
$2,690,000 160005877
$2,500,000 160002314
$2,495,000 160009435
$2,495,000 160001981
$2,475,000 160005867
20203 BORDEAUX DRIVE
655 JUNIPER HILL ROAD
140 HAWKEN ROAD
440 ANITRA DRIVE
430 ANITRA DRIVE
6320 DE CHARDIN
5820 LAUSANNE DRIVE
20162 BORDEAUX DRIVE
$3,750,000 150007415
$2,675,000 150010094
$2,495,000 160000006
$2,395,000 160002452
339 ANITRA DRIVE
5850 LAUSANNE
90 HAWKEN ROAD
6105 LAKE GENEVA
Current Dickson Luxury Listings
Click on the MLS number to view each listing online.
$2,385,000 150008410
$2,298,000 160002362
$2,285,000 150015524
$2,200,000 150013612
$2,200,000 150010606
$1,995,000 140012423
160005603
10043 E DESERT CANYON DRIVE
$1,995,000 160005640
$1,990,000 140010943
$1,899,000 $1,789,000 160006978
$1,750,000 160009023
3630 LAMAY LANE
6626 GEBSER COURT
$1,995,000 6672 MASTERS DRIVE
160007701
6070 LAKE GENEVA
2125 GREENSBURG CIRCLE
5815 LAUSANNE DRIVE
14285 QUAIL SPRINGS
8999 PANORAMA
3305 MARIO ROAD
6005 LAKE GENEVA
6864 MASTERS DRIVE
Current Dickson Luxury Listings
Click on the MLS number to view each listing online.
$1,700,000 160002103
$1,695,000 150016214
$1,650,000 160006371
$1,625,000 160008318
$1,595,000 160004351
$1,595,000 $1,500,000 150009039
20588 CHANSON WAY
1080 MOUNT ROSE
4200 LONGKNIFE ROAD
15155 TIMBER CREST TRAIL
$1,695,000 160000726
$1,599,000 150005814
160005737
10398 COPPER CLOUD DRIVE
$1,550,000 160005949
$1,495,000 $1,485,000 160002711
6685 DE CHARDIN LANE
1670 GREEN ASH
2500 FARETTO LANE
150001974
6042 BREITHORN CIRCLE
20612 CHANSON WAY
5695 LAUSANNE DRIVE
6 SILVER SADDLE COURT
Current Dickson Luxury Listings
Click on the MLS number to view each listing online.
$1,450,000 160000067
$1,449,000 160002406
$1,395,000 140012641
$1,390,000 160007827
$1,375,000 160007649
$1,375,000 160004716
$1,368,000 160009360
$1,350,000 160002450
$1,350,000 160006377
$1,349,000 160005413
$1,299,000 160009664
$1,299,000 160000730
65 SHARPS CIRCLE
4260 LONGKNIFE ROAD
696 SADDLEHORN DRIVE
4460 MOUNTAINGATE DRIVE
20624 CHANSON WAY
74 BENNINGTON COURT
3800 BOULDER PATCH
5880 CARTIER
5825 STRASBOURG COURT
20685 MARGAUX ROAD
20525 LATOUR WAY
20665 PARC FORET DRIVE
Current Dickson Luxury Listings
Click on the MLS number to view each listing online.
$1,295,000 150012119
$1,265,000 160009423
$1,249,000 160008118
$1,195,950 160006511
$1,189,000 160009716
$1,179,000 160007728
$1,105,000 160003124
$1,100,000 160008359
$1,100,000 160007719
5795 CLARENS
3050 BLUE SPRUCE
4000 OLD RANCH ROAD
$1,099,000
208 N BIG SAGE
150007075
20605 PARC FORET DRIVE
243 E JEFFREY PINE ROAD
12760 SILVER WOLF ROAD
$1,085,000
3445 QUILICI ROAD
160005606
$1,070,000
1940 VIEW CREST
3405 LUNSFORD COURT
270 ABIES ROAD
12655 SILVER WOLF ROAD
160004911
$1,039,000
160005940
3640 PLUMAS STREET
CAUGHLIN RANCH 775.746.7000
DAMONTE RANCH
775.850.7000
TRUCKEE
530.587.7444
SOMERSETT
775.746.7222
DONNER LAKE
530.587.4811
MONTRÊUX
775.849.9444
SPARKS
775.685.8800
GRAEAGLE
530.836.1700
DicksonLuxury.com | [email protected]
© 2016 Dickson Realty. All rights reserved. Although the information above is deemed reliable, Dickson Realty does not guarantee its accuracy.
DOWNTOWN
775.324.7000