The RGJ reports that pending sales of existing homes jumped significantly in April.
The Reno-Sparks Association of realtors reported that pending sales in April were up 27 percent from February, more than double the pending sales reported in April of a year ago. Total pending sales in Reno-Sparks were at 1,131, an increase from 865 in March and 574 in April of last year.
Some are suggesting that this would indicate that we have reached a bottom and have begun to recover the prices of the past. However, nearly 80% of these sales are from foreclosures or short sales. The market is still facing a large number of homes that were financed with questionable loans and are probably “upside down”. This is expected to have a downward influence on prices until the inventory is reduced.
Further, although we have seen a jump in the number of sales, the prices appear to still be declining.