December 2020 Market Report

** Data in this report reflect market activity from NOVEMBER 2020 compared to the previous month and year.  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.

  • For the second straight month, the Median Sales Price for single-family, re-sale properties in Reno and Sparks, held steady at $455,000.  This represents a 13.8% increase compared to the same time last year.

  • The Average Sold Price per Square Foot has leaped 14.5% during November 2020 compared to November 2019, and has inched up 1.5% month-over-month.  This average represents properties sold over ALL price ranges.  For a breakdown of the Average Sold Price per Square Foot by Price Range, refer to the chart below.

  • Homes that sold in November 2020 under $1M averaged around $245/square foot, while the upper price ranges cashed-in at $327/square foot for the 25 homes that sold in the $1M to $1.5 M range, and $492/square foot for the 13 homes that sold over $1.5M.

  • The # of Units Sold dropped 12% month-over-month from 616 to 551However, 21% more units sold in November 2020 compared to November 2019.  The inventory that sold in November most likely went into contract sometime in October.

  • Sales in the $300k to $500k price range accounted for 55% of the total market share for the second straight month.

  • The extremely low Absorption Rate in Reno/Sparks holds steady at 0.7% Months Supply of Inventory.  The Absorption Rate has declined a massive 73% year-over-year.  MSI absorption rate represents the time it would take to “sell out” of the Reno-Sparks inventory at the current rate of sale if no new listings were added to the market.  A balanced market is around 5-6 months of supply, therefore, we are still very much in a  “Seller’s Market.”

  • The Absorption Rate across all all price-points is well-below a balanced market.  The rate of sales in the high end luxury market over $1.5M is 3.5 months supply, also quick-moving in today’s hot real estate market.

  • Properties across all price points are accepting offers and going into contract an average of 34 days from listing to acceptance.  Single Family Residences are receiving acceptable offers 45% more quickly than this same time last year. 

  • In November 2020, the fastest moving properties, again, were those priced between $300k and $500K, spending an average of only 18.5 days on market.

  • The # of New Contracts month-over-month dropped a whopping 29% from 612 New Contracts to 434.  However, the number of new contracts posted in November 2020 was only 5.5% less than last year.

  • As typically experienced each winter, we are beginning to see a drop in the # of New Contracts.  See the chart above that indicates this cyclical trend.  Also, please note that a premature drop was noted in April, likely due to the economic shut related to COVID-19.  We saw a significant drop of 29% for New Contracts month-over-month, and 5.5% fewer New Contracts in November 2020 compared to November 2019.

  • The # of New Listings to come to market during November 2020 declined 35% since October 2020.  There were also 12.5% fewer New Listings this November compared to November 2019.

SUMMARY:

  • While the number of New Listings and New Contracts has dropped since October which is typical for this time of year, the rate of sales continues to be on-par with the activity we have seen in 2020.  Much to the surprise of many, the real estate market has fared extremely well during this crazy pandemic.
  • As a result of low inventory and high buyer demand, prices have held steady with the median sales price remaining at $455,000 for a single-family residences. New construction, condominiums, and condos/townhouses are not included in this statistic.
  • The Average Sold Price per Square Foot is 14.5% higher than November 2019.
  • Single-family residences continue to move very quickly at an average of 34 days from listing to contract over all price ranges.
  • If you are considering selling your home to upsize, downsize or relocate, I am here to assist you with experienced, professional services to make your transition as smooth as possible.  Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682.  I am so happy to help!
  • Buying a home in Northern Nevada?  Whether it’s your first home, second or third, vacation home or investment property, I have the knowledge and highest level of skill to navigate you through the process.  Call me at 775-233-0682.
Posted on December 17, 2020 at 7:34 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , ,

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