** Data in this report reflect market activity from December 2019 compared to November 2019 and December 2019 compared to December 2018. Information is gathered from the Reno-Sparks Association of Realtors® (RSAR) for the Greater Reno-Sparks region via Northern Nevada Regional Multiple Listing Service (www.nnrmls.com). Data accounts for single-family resale residences only, and excludes townhouses/condos, manufactured/modular and new construction.
- December 2019 Median Sales Price for single-family re-sale properties in Reno-Sparks combined dipped slightly from $400,000 in November 2019 to $393,000 (-1.7%). As seen in last month’s market report, the Median Original List Price had dropped 2.2% from October to November. This sign of higher motivation by Sellers is likely a factor in the slight dip of the Median Sales Price. The Median Sales Price is up 7.7% from this same time last year.
- “Months Supply of Inventory” (MSI) is defined as the time it would take for the current inventory to be completely sold out if sales remained at their current rate.” But do remember that this inventory supply does not factor in NEW home construction that is offered throughout the region. A “balanced inventory market” is about 6 MSI. The MSI in December 2019 was 1.6, a Seller’s market indeed. The MSI is 31% lower than last year this same time.
- While the majority of the market is in a “Seller’s Market,” due to low inventory, the Luxury Market’s Absorption Rate is a little higher at 7 MSI. This means that at the current rate of sales, if no homes over $1,000,000 are added to the inventory, all active luxury listings would be sold in 7 months.
- December 2019 saw only 246 new listings. Though this statistic is following the typical seasonal trend (see graph below), the 15% fewer homes were added to the market this year compared to last year.
- Look how far we’ve come! Check out the graph below… Remember the days of short sales and foreclosures flooding the market? Those days are long gone. About 10 years ago, non-distressed sales made up only about 1/3 of the market. With massive appreciation over the last 7-10 years, homeowners are enjoying some equity again, and 96.1% of the market is now non-distressed.
- Where are we now? With inventory low, and median sales price expected to continue to rise, affordability is a concern. Currently, Reno is ranked 18 of the 100 least affordable cities to live in. The Reno Gazette Journal reports that “residents of the Biggest Little City need to spend about 45% of their income on average in order to own a house, according to the RealtyHop housing affordability index for January. This places Reno in the bottom fifth for housing affordability among all cities included in the list. It also moves Reno a spot in the rankings.” For more information about this recent report, visit RGJ.com.
- Want to talk more about what’s happening in the Reno-Sparks market? If you need me, I’m here to assist with your purchasing and selling needs. Email me (firstname.lastname@example.org) or call me directly at 775-233-0682.