Low inventories and high demand have driven much of the price increases and sales  in the market recently.  As a result home prices in the Reno-Sparks rose 10 percent in September, compared with a year ago, according the Core-Logic’s Home Price Index report released yesterday. Not including sales of distressed properties, prices for existing homes rose 11.9 percent last month, compared with September 2011.  Nevada saw one of the highest increases, making it one of the highest home appreciation rates in the US.  We are still more than 50 percent below its peak prices before the real estate market collapsed in Nevada.

News on home prices confirms other good news about housing. Single family housing starts are 43% ahead of last year’s pace, existing and new home sales are also up, the inventory of homes for sale continues to drop and consumer mortgage default rates are reaching new lows. Further consumer confidence continues to rise. Even as we end the seasonally strong home buying period, the statistics are positive.

In the past three weeks, four homes have gone into escrow in Montreux  with an average sale’s price of $1,532,250, or $321.50 per sq ft.  Significantly higher per sq foot than 5 months ago.  With reduced inventories, improved buyer demand and home prices over the past five months makes us optimistic for continued recovery in the housing market.