Reno-Sparks Market Report March 15, 2021

March 2021 Market Report

** Data in this report reflect market activity from FEBRUARY 2021 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.

  • In the Reno-Sparks market, the Median Sales Price has held steady over the last several months at $450,000.  As mentioned in last month’s report, he median sales price represents the very middle of a data set, with exactly half of the houses priced for less and half priced for more.  60% of all single family homes sold under $500k.

  • Also holding steady are the total number of single family homes sold.  Only 379 units sold in February 2021, a minimal increase month-over-month and a 17% decrease year-over-year.  The circled portion of the graph below (between $300k & $500k) represents this largest chunk of properties sold in February.  60% of all single family homes sold were under $500k.

  • The graph above represents the distribution of sold properties by price-point.  62% of the units sold were under $500k.  This distribution of sold properties is a large reason why the Median Sales Price is still hovering around $450k.

  • February 2021 saw the Average Sold Price per Square Foot inch up again, 3% month-over-month, and jump 20% compared to the February 2020.  This average represents properties sold over ALL price ranges.

  • Please refer to the chart above for a breakdown of the Average Sold Price per Square Foot by Price Range.

  • The rate of sales continues to be extremely high, indicating the continuance of a strong Seller’s Market. February 2021’s Months Supply of Inventory is 60% lower than inventory in February 2020.  February 2021’s MSI absorption rate, at 0.7 months, means that the minimal active inventory would “sell out” if sales continue at the current rate.  Remember, a balanced market is more like 5-6 months supply.

  • Once again, the Absorption Rate across all all price-points is still well-below a balanced market.  Most price points saw less than one month of supply in February 2021.

  • The average Number of Cays from Listing to Contract over all price points in February 2021 was 24… a record low.  See the graph below for the breakdown at each price-point.

  • Homes priced under $600k witnessed an insanely minimal number of days from listing until accepted offer… an average of 11.75 days on market before receiving an acceptable offer.

  • The market saw 18% fewer contracts in February 2021 compared to February 2020, and a minimal increase of 3.5% compared to the previous month.

  • The number of New Listings in February 2021, at 443, was down 17% from last year, and 17% greater than the previous month.  The general trend of increasing New Listings is quite common for this time of year.

SUMMARY:

  • “Multiple over-asking offers,” “Offers committing over-appraised-value,” “Back-to-back showings all weekend…”  These are likely among the most commonly uttered phrases among active Realtors in today’s market.
  • Will the frenzy we’ve been experiencing continue?  If so, for how long?  These are the burning questions on most Buyers’ minds these days.  If Buyer-demand keeps pace with the level of inventory, the current market climate could continue for some time, especially if interest rates remain low.
  • Though the average 30-year fixed rate mortgage rates have popped up from 2.65% in Jan to just over 3% in early March, rates are still considered to be extremely low.  Lower interest rates have very likely acted as an incentive for today’s home-buyers, consequently adding to the already high level of demand.
  • The rate of absorption continues to be extremely low, with only about an average of 3 weeks of supply.
  • The Median Sales Price in Feb 2021, the mid sales-point for sold homes of all price-ranges, was 15% higher than last year at $450k.
  • The Average Sold Price per Square Foot continues to steadily rise and is now $269/square feet in Reno-Sparks.
  • Single-family residences continue to move very quickly at a record-low average of 24 days from listing to contract, 52% faster than this same month last year.
  • Need to make a move in this fiercely competitive market? … Sell your current home while purchasing your next home?  My clients have experienced great success at doing just this with the plans we have implemented!!  Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682 so we can discuss the best plan for YOU!  Thank you, ~Denise Hallerbach, Broker-Owner, INTERO RENO.