September 2020 Market Report

** Data in this report reflect market activity from AUGUST 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.

  • In August 2020, the Median Sales Price for single-family re-sale properties in Reno and Sparks continues it’s upward trend for the 3rd straight month.  The Median Sales Price increased 2.5% month-over-month and 11.5% year-over-year to $444,900.

  • The Average Sold Price per Square Foot has also been steadily rising over the last several months.  The average single-family residence sold in Reno-Sparks in August for $239/sqft, a 7% increase year-over-year.

  • Though the Average Sold Price per Square Foot is $239/sqft, homes selling over $750k appear to be the reason the average is pulling upward.  Homes that sold between $750k and $1M averaged $259/sqft, homes that sold between $1M and $1.5M averaged $334/sqft, and homes that sold for over $1.5M averaged $375/sqft.

  • The # of Units Sold dipped 13.4%, month-over-month from 744 to 644.  The # of Units Sold in August 2020 is 3.2% higher than August 2019.  Please note that sales closing in August likely went into contract in July 2020, accounting for a typical 30-day escrow.

  • August’s Absorption Rate continued to steadily decline and is at a historic low of 0.8 Months Supply of Inventory. a significant 65% drop from August 2019 and a 14% decrease from July 2020.  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 to come to market.  A balanced market is around 5-6 months of supply, therefore, we are solidly in a “seller’s market.”

  • The Average # of Days from Listing to Contract in August 2020 inched down one day compared to July 2020.  It took an average of 36 days from listing on MLS until acceptance of an offer.  Single family residences are taking about 18.3% less time to receive and acceptable offer this year than in August 2019.  These averages account for all price ranges.

  • With competition among buyers in multiple offer situations, the average SFR in Reno-Sparks received 99.5% of asking price in August 2020.  Many homes are selling above asking price and buyers are waiving appraisal outcomes to secure the property today.

  • The # of New Contracts popped up in August 2020 with 794 accepted offers in the pipeline to close escrow in September.  August 2020 saw 33% more new contracts than the same month last year and 15% more new contracts than the previous month.

  • The # of New Listings to hit the market dipped 1% month-over-month, while decreasing 12.4% compared to August 2019.

SUMMARY:

  • Californians continue to seek relief from a hostile tax environment, the destruction of wildfires, severe COVID-19 restrictions and ongoing congestion to find that Northern Nevada is their refuge.
  • Low 0.8 months supply of inventory and high buyer demand is fueling the very hot residential real estate market today.
  • The Median Sales Price and Average Sold Price per Square Foot are steadily rising.
  • Average days from listing to contract continues to drop.
  • Mortgage rates are still historically low, making home purchasing more affordable regardless of rising prices.
  • The # of New Contracts in August 2020 continue to rise.
  • 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 September 10, 2020 at 2:00 pm
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , ,

August 2020 Market Report

** Data in this report reflect market activity from JULY 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.

Here is the market overview:

And here are a more detailed look at the stats for July 2020 compared to the previous month and year:

  • In July 2020, the Median Sales Price for single-family re-sale properties in Reno-Sparks combined leaped 7.4% month-over-month and 7.1% year-over-year to $435,000.  This is the biggest increase month-over-month in recorded history.

  • # of Units Sold bumped up another 29%, month-over-month from 557 to 718.  Sales volume compared to 2019 has been historically low over the last several months.  However, as new contracts have been ramping up the last few months, we are finally seeing an 18.3% increase in sales volume in July 2020 compared to July 2019.  Please note that the sales that closed in July likely went into contract in June 2020, accounting for a typical 30-day escrow.

  • The graph above represents the number of Units Sold by Price Range.  Single family residences (SFR) priced between $300k and $400k typically represent a significant chunk of market share.  And while 220 SFR sold in the $300k-$400k price range, 210 homes priced between $400k and $500k closed in July 2020, a respectable volume for this price range.

Months Supply of Inventory (MSI) has plummeted 64% compared to July 2019. and is 364% lower than the previous month.  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 to come to market.  A balanced market is around 5-6 months of supply.  At 0.9 months supply, we continue to be in a very strong “Seller’s Market.”

The Average # of Days from Listing to Contract in July 2020 ticked down a couple of days compared to June 2020.  It took an average of 38 days from listing on MLS until acceptance of offer presented.  Single family residences are taking about 13% less time to receive and acceptable offer this year than in July 2019.  These averages account for all price ranges.

With competition among buyers in multiple offer situations, the average SFR in Reno-Sparks received 99.3% of asking price in July 2020.  Many homes are selling above asking price and buyers are waiving appraisal outcomes to secure the property today.

A distressed sale is one that is caused by economic hardship.  A short sale occurs when a homeowner defaults on his/her mortgage payment and is unable bring payments to the lender current, and is therefore forced to sell the property for less than the balance owed.  A Foreclosure occurs when a lender repossesses real property after the borrower defaults on the loan and does not successfully sell it prior to this event.  Percentage of Distressed Sales increased from 1.4% to 2% month-over-month, and is down 31% from the same time last year.  Distressed properties still make up an extremely small percentage of the current market.

The # of New Contracts inched up in July 2020 with 745 accepted offers in the pipeline to close escrow.  July 2020 saw 25% more new contracts than the same month last year.  

# of New Listings to hit the market in July 2020 dipped 1.5% month-over-month.  # of New Listings in July 2020 are down 15% from the same period of time last year.

SUMMARY:

  • In a nutshell… our housing inventory is extremely low.  The absorption rate at 0.9 Months Supply of Inventory is at a historic low.  This low inventory, coupled with high buyer-demand, is resulting in multiple offer situations, overbidding in many cases, and a jump in the Median Sales Price (MSP).  The Reno-Sparks MSP is now $435,000.  Reno’s MSP is $459,000 and Sparks’ MSP is $415,000.
  • While mortgage interest rates ticked up ever-so-slightly last week, they are still very low, offering buyers increased purchasing power, and current homeowners the opportunity to refinance to put more cash in their pockets monthly.
  • The # of Distressed Properties on the market is still at a minimal level.  Short sales and foreclosures account for only 2% of all sales at this time.
  • The # of New Contracts in July 2020 were 25% greater than this same time last year.
  • Relocation home buyers from out-of-state and investment buyers are craving properties to purchase here in Northern Nevada.  The real estate market appears to be thriving at this time despite the persistence of COVID-19.
  • If you are in the market to buy OR sell property in Northern Nevada, please fee free to email me at dhallerbach@intero.com or reach me directly at 775-233-0682.  I am so happy to assist!

Posted on August 17, 2020 at 1:29 pm
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , , ,

July 2020 Market Report

** Data in this report reflect market activity from JUNE 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.

Here is the market overview:

And here are a more detailed look at the stats for June 2020 compared to the previous month and year:

  • In May 2020, the Median Sales Price for single-family re-sale properties in Reno-Sparks combined was $407,000, a 1.8% increase from both May 2020 and June 2019.  The median sales price over the last year has hovered around the $400k mark and appears to remain steady at this time largely due to high buyer demand and low inventory.

  • # of Units Sold leaped 32%, month-over-month from 396 to 537.  The sales volume in the month of June, was down just 6% compared to June 2019.  This statistic represents properties that most likely went into contract in May this year.  As a side-note, 37.6% of the sold inventory closed with a sales price between $300,000 and $399,000.  Only 1 single family residence sold under $199,999.

Months Supply of Inventory (MSI) is down 41% from May 2020 and plummeted 48% from the same time last year.  MSI absorption rate accounts for the time it would take to “sell out” of the Reno-Sparks inventory at the current rate of sale if no new listings were to come to market.  A balanced market is around 5-6 months of supply.  The 1.3 months supply, is very much in a “Seller’s Market” as it is well below the balanced level.

As observed in the graph above, the Months Supply of Inventory is extremely low for properties selling under $750,000.  The inventory supply increases to a more balanced level for properties selling over $750,000 with a slight edge for the buyer in this price range.

The Average # of Days from Listing to Contract in June 2020 inched up a couple of days to 40 days.  Single family residences are taking about 7% longer to sell this year than in June 2019, and 5.5% longer than May 2020.  These averages account for all price ranges.

Above is the breakdown of the Average Days to Contract by Price Range in June 2020.  Note that only 1 single family residence sold under $200k in June 2020 and it took 2 days to obtain an acceptable offer.

Sellers continue to receive an average of 98.9% of asking in June 2020.  This statistic has held fairly consistently over the last few years.  Please note that price reductions may have occurred prior the acceptance of an offer.

What is a distressed sale?  It is a sale caused by economic hardship.  A short sale occurs when a homeowner defaults on his/her mortgage payment and is unable bring payments to the lender current, and is therefore forced to sell the property for less than the balanced owed.  A Foreclosure occurs when a lender repossesses real property after the borrower defaults on the loan and does not successfully sell it prior to this event.  The percentage of distressed sales on the market declined 7.3% month over month, and is 27.5% lower than in June 2019.  Only 1.4% of homes sold in June 2020 were considered “distressed.”

Since the April 2020, the # of New Contracts has doubled (during May and June 2020).  June 2020 saw 27.5% more New Contracts (779) than the same month last year.

# of New Listings to hit the market in June 2020 increased by 8% month-over-month.  Our # of New Listings in June 2020 are down 17% from the same period of time last year.

SUMMARY:

  • The absorption rate at 1.3 Months Supply of Inventory is the lowest it has been since April 2018.  On average, at the current rate of sale, the active inventory would be completely absorbed in 1.3 if no new properties were brought to market.  Inventory, in general, is extremely low and moving very quickly (particularly homes priced under $750k).
  • The Median Sales Price at $407,000 is slightly higher month-over-month and year-over-year (+1.8%), continuing to hold steady through the economic recession due to COVID-19.
  • Distressed sales still comprise a very small percentage of the active inventory… only 1.4% of all single family residence sales in June 2020.
  • The # of New Listings for June 2020 inched closer to more typical levels for this time of year.
  • The continued increase in the # of New Contracts for June at 779 indicates an increasing level of purchasing activity in our area.
  • If this the right time for you to make YOUR move?  Whether you are buying, selling or doing both, I would be happy to assist you in coordinating your efforts for smooth transactions and transitions.  Email me at dhallerbach@intero.com or reach me directly at 775-233-0682.

Posted on July 8, 2020 at 4:39 pm
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , ,

June 2020 Market Report

** Data in this report reflect market activity from MAY 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.

Here is the market overview:

And here are a more detailed look at the stats for May 2020 compared to the previous month and year:

  • In May 2020, the Median Sales Price for single-family re-sale properties in Reno-Sparks combined was $399,900, a 3.6% decrease from April 2020, and a 2.5% increase from May 2019.  As seen in the graph above, the median sales price has hugged the $400k price point over the last year and appears to be steady at this time.

  • # of Units Sold inched up 387 to 396 from April to May 2020.  The sales volume is down 42% compared to the same month last year.  This volume is representative of properties that likely went under contract for sale in April and were in escrow for about 30 days.

Months Supply of Inventory (MSI) decreased 11.8% month over month from 2.4 to 2.1 months supply.  This measure of inventory is also about 5% higher than last year. MSI accounts for the time it would take to “sell out” of the Reno-Sparks inventory at the current rate of sale if no new listings came to market.  A balanced market is around 5-6 months of supply.  Therefore, with a low 2.1 months supply, we are still very much considered to be in a “Seller’s Market.”

The Average # of Days from Listing to Contract in May 2020 was 39 days.  Single family residences are taking 20% longer to sell this year than in May 2019, and only 1.6% longer than the previous month.  These averages account for all price ranges.

As seen in the graph above, homes that sold in the $200k to $700k range during May 2020 received acceptable offers significantly more quickly than the rest of the market.  The $1M to $1.5M range went into contract fairly quickly (66 days) compared to the $750k to $1M range and the $1.5M+ range (108 days).

With Seller’s receiving an average of 99% of asking in May 2020, we continued to see no significant change for this statistic overall.  Please note that price reductions may have occurred prior to receiving 99% of asking.

Is the economic impact of COVID-19 pandemic causing foreclosures and short sales in Reno-Sparks at this time?  So far, homeowners appear to be hanging in through the highest unemployment rate most of us have ever seen.  The percentage of distressed sales on the market did increase 7% month over month, but is still down 30% from May 2019.  Only 1.7% of homes listed on multiple listing service were considered “distressed,” meaning a bank-owned/foreclosure or short sale.

The last several weeks of real estate activity have brought a significant increase in the # of New Contracts.  Month over month, we saw a 635 New Contracts for sale, a 63.7% leap from April 2020 and a 3.9% increase from last year.

# of New Listings to hit the market the week ending in May 2020 increased slightly by 3.8% compared to April 2020.  Our # of New Listings are still down nearly 40% from the same period of time last year.

SUMMARY:

  • Inventory is still low, but what IS on the market is moving, as indicated by the significant increase in New Contracts, which should lead to an increase in sales volume in the coming months.
  • The Median Sales Price at $399,900 appears to be fairly steady at this time.  Over the last year, the $400k Median has been a benchmark the market has hovered around during the last 13 months.
  • The consensus among many real estate professionals is that “summer is the new spring.”  The typical influx of activity that happens in March, April and May is beginning happening now.  My colleagues and I have been extremely active over the last couple of months.
  • With low inventory, however, we’ll need to see if buyer demand for fewer homes listed will continue, and ultimately put more upward pressure on prices again.  Will the Median Sales Price start moving up again in the near future?  We shall see…
  • Buyer activity in Reno-Sparks comes largely from out-of-state, particularly California.  While many of our relocation clients are looking to escape the crowds, traffic and high taxes of California during COVID-19 uncertainty, they are finding more reasons now than ever to make that move.  We call them “California Refugees,” and we are here to help.  Email me at dhallerbach@intero.com to learn more about the many benefits of moving to Reno-Sparks.

Posted on June 18, 2020 at 3:38 am
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , , ,

Weekly Watch (Week Ending May 30, 2020)

For those of you who have followed my blogs over the past several years, my usual content offers the most exciting and interesting events and activities in Northern Nevada every week.  It is called “The Weekend Warrior.”  Since our social calendar has been obliterated by the COVID-19 pandemic, I shifted my focus to what is happening in the Reno-Sparks real estate market in “The Weekly Watch.” My objective is to keep you well-informed about weekly market trends so you can make informed decisions regarding your real estate investments.  The graphs below represent activity for single-family residences (excluding condos, townhouses and new construction) from the week ending May 30, 2020 compared to the previous week and year.  The numbers are subject to change slightly, due to late reporting by real estate agents to Northern Nevada Multiple Listing Service.

 

The Median Sales Price for single family residences in Reno-Sparks combined, at $420,000, increased 5% week-over-week and 8.3% year-over-year.  The Median Sales Price has hovered around the $400,000 mark over the last several months, and appears to be unaffected by coronavirus at this time.

 

The # of Closed Sales statistic is starting to show some hope, as 103 homes closed escrow the week ending May 30 compared to 93 homes the previous week, a 10.8% increase.  Though sales volume is still about 40% lower than this same time last year, we anticipate the # of Closed Sales should continue to increase as these are homes that went into contract about one month ago, and over the last several weeks, the # of New Contracts has steadily and rapidly increased.

 

Low inventory and continued Buyer demand are likely contributors to the high percentage of list price that Sellers are receiving.  The week ending May 30, Seller’s received and average of 98.6% of asking price.  Please bear in mind that some of these contracts may have come at a point after the Seller had reduced the list price.

 

During the week ending May 30, single family homes that closed escrow took an average of 44 days from listing the property to negotiating a contract.  This statistic is unchanged week-over-week, and up about 28% from the same week last year.  The # of Days to Contract stat is representative of properties that went into contract about 30 days ago, a customary timeframe for escrow.

Looking at the length of time from the property hitting the market to the date of written offer acceptance, the average days to contract were the greatest in the $900k to $1M price range.

 

The # of Active single family homes available for sale dipped again another 8% (-5.4%) week-over-week.  Since the WHO (World Health Organization) Pandemic Declaration, our active inventory has held fairly constant, as indicated in the circled timeframe.  Overall, 38% fewer active listings are on the market than the same week in 2019.

 

As more businesses resume “semi-normal” activity, and Buyers are getting out to find new homes and investments, we continue to see an increase of New Contracts week-over-week and year-over-year.  There were 7.5% more New Contracts the week ending May 30 than the week ending May 23.  And there are 19.3% more New Contracts than this same week last year.

 

The # of New Listings brought to market (116 listings) dropped again, with 18.3% fewer homes being listed the week ending May 30 compared to the week ending May 23.  There were nearly 31.4% fewer homes listed this week than during the same week in 2019.

Summing It Up…

  • Overall, the Sales Volume and # of New Listings on the market remains low, especially this time of year.
  • With New Contracts on the rise over the last several weeks, we should start seeing a subsequent increase in number of Units Sold in the weeks to come as well.
  • Sellers are receiving a high percentage of their list price and the Median Sales Price has ticked up to $420k again, likely due to the low-inventory market and steady buyer demand.
  • Mortgage interest rates are still extremely low, and many Buyers are taking advantage.  Email me today for a highly skilled and knowledgable lender recommendation.
  • For more information about the ins and outs of buying &/or selling real estate in today’s market, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.

Posted on June 4, 2020 at 12:20 am
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , ,

Weekly Watch (Week Ending May 23, 2020)

Phase 2 of the re-opening of Nevada officially begins this weekend.  While many keep a close eye on what is happening with COVID-19 and the economy, we at Intero Real Estate Services are committed to keeping you informed with what is happening in the Greater Reno-Sparks real estate market. “The Weekly Watch” provides you with the most current information on a weekly basis to help you make informed decisions regarding your investments.  The graphs below represent activity for single-family residences (excluding condos, townhouses and new construction) from the week ending May 23, 2020 compared to the previous week and year.  The numbers are subject to change slightly, due to late reporting by real estate agents to Northern Nevada Multiple Listing Service.

 

The Median Sales Price the week ending May 23 was nearly $400,000, exactly where the Median Sales price was sitting this same week last year.  This aspect of the market does not appear to be affected by COVID-19 at this time.

 

The # of Closed Sales dipped (-8.4%) from the week ending May 16 to the week ending May 23.  Looking at the same period of time last year, sales volume is about 1/2 of what posted the week ending May 25, 2019.  Over the last 7 weeks, sales volume has been fairly consistent as seen in the circled section in the chart above.
As seen in the chart above, the bulk of sales last week were in the $300k-$500K range.  The high-end market also saw some action as well.  These figures represent properties that went into contract about 1 month ago.

 

Though sales volume continues to be lower than in recent years, the Percentage of List Price received remains high.  The week ending May 23, Sellers received an average of 98.9% of their asking price.  This continues to likely be a strong factor for the Median Sales price staying steady over the last few months.

 

During the week ending May 23, single family homes that sold this week took an average of 44 days from listing the property to negotiating a contract.  This stat is representative of properties that went into contract about 30 days ago, a customary timeframe for escrow.

 

The # of Active single family homes available for sale dropped slightly (-5.4%) week-over-week.  Over the last 2 months, since the WHO (World Health Organization) Pandemic Declaration, our active inventory has held fairly constant, as indicated in the circled timeframe.

 

This is the stat we like to see!!  The most promising news of the market, AGAIN, is the now 7-week upward trend of the # of New Contracts/Pending Sales.  This marks a 17.7% increase week-over-week and a 25% increase compared to this week last year.

 

The # of New Listings brought to market dipped slightly, with 6.6% fewer homes being listed the week ending May 23 compared to the week ending May 16.  There were nearly 45% fewer homes listed this week than during the same week in 2019.

Summing It Up…

  • Buyer demand continues to keep pace with the level of active inventory, resulting in continued steadying of the Median Sales Price that has hovered around the $400k mark for months.
  • Sales Volume, Active Inventory and # of New Listings are still down significantly from the same week last year.  However, with Buyers staying on track with purchases, our activity appears stable.
  • Mortgage applications rose for the 6th straight week, as they were fueled by historically low mortgage rates and pent-up demand.  The Mortgage Bankers Association reports that mortgage applications are up 9% year over year.  Refinancing applications have doubled since the same week last year as well.  If you are in need of a qualified loan officer, contact me now and I will refer you to the best in our industry.
  • For more information about the ins and outs of buying &/or selling real estate in today’s market, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.

Posted on May 28, 2020 at 4:28 am
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , ,

Weekly Watch (Week Ending May 16, 2020)

As many Nevada business are beginning to enter Phase 2 of re-opening, we at Intero Real Estate Services are continuing to keep a very close eye on when is happening in the Greater Reno-Sparks real estate market. “The Weekly Watch” provides you with the most current information on a weekly basis to help you make informed decisions regarding your investments.   The graphs below represent activity for single-family residences (excluding condos, townhouses and new construction) from the week ending May 16, 2020 compared to the previous week and year.  The numbers are subject to change slightly, due to late reporting by real estate agents to Northern Nevada Multiple Listing Service.

 

At $389,500, the Median Sales Price the week ending May 16, was slightly lower (-1.6%) than the previous week, and 7.4% higher than the same time last year.  The median sales price has not dropped below the $390,000 threshold since mid February.  Overall, the Median Sales Price in Reno-Sparks has been holding fairly steady through the COVID-19 crisis.

 

The # of Closed Sales rose 22.2% from the week ending May 9 to the week ending May 16.  Sales volume is still about 36% down from the same period in time last year.  This lower sales volume has also been a fairly consistent statistic since early to mid April.

 

While sales volume is down, many Sellers are still receiving a high percentage of their list price.  Sellers received an average of 99.1% of list price the week ending May 16.

During the week ending May 16, single family homes that sold took an average of 32 days to go into contract.  Week-over-week, there was no significant change in the # of Days to Contract and compared to this same week in 2019, the # of Days to Contract has increased 17.7%.  This stat is representative of properties that went into contract about 30 days ago, a customary timeframe for escrow.

 

The # of Active single family homes available for sale dropped slightly (-2.6%) week-over-week.  The Active Inventory mirrors the # of Sold Properties this week compared to last year, in that we have 32.4% fewer active listings available for purchase year-over-year.

 

After a significant spike in the # of Withdrawn, Temporarily Withdrawn, or Expired Listings a few weeks ago,  this pull-back activity has drastically dropped another 71.4% from the week ending May 9.  While only 4 properties were removed from the market this year, 20 single family homes where pulled this same time last year.

 

Once again!!  The brightest news of the market is the 6-week upward trend of the # of New Contracts/Pending Sales.  The week ending May 16 saw a 23.7% leap compared to the week ending May 9, and a slight increase of 1.4% since mid-May 2019.

A more detailed look at the # of New Contracts/Pending Sales in the chart above shows that, the $300k to $800k priced single family homes showed an increase of New Contracts week-over-week.  And 4 of those 5 price ranges revealed an increase in New Contracts from this same week last year.  VERY encouraging news!

 

The # of New Listings is still lagging a bit, with 13% fewer homes being listed the week ending May 16 compared to the week ending May 9.  Consistent with the # of Sold Units this week AND the # of Active Listings, the New Listing count is down about 34% compared to this same week last year.

Summing It Up…

  • With the re-opening of businesses across the states, and increased activity of potential buyers over state borders, the real estate market in Northern Nevada continues to forge ahead through the current global health crisis.
  • While Sales Volume, Inventory and the # of New Listings are all down about 36%, 32% and 34% respectively compared last year, the market is concurrently experiencing a upward trend in new contracts that should result in an increase in sales volume in the coming months.
  • Buyer demand continues to keep pace with the rate of sale in the low inventory climate, and Sellers are receiving an average of 99.1% of their list price. Therefore, the Median Sales Price has been bopping above and below the $400k mark for several weeks.  The rate of market appreciation appears to be on idle through this strange COVID-19 time.
  • According to Bankrate.com, the average benchmark mortgage interest rate today (May 21, 2020) is still low… At 3.54% the average rate is down 2 basis points over the last 7 days.  Naturally, rates can fluctuate from day to day, and are reflective of the borrowers strength of employment history, credit score and debit-to-income ratio.  If you are looking to purchase now and need to connect with a great lender to find your best mortgage rate, contact me.  I’ll point you in the right direction!
  • For more information about specific property values and to search real estate for when YOU are ready to purchase/sell, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.

Posted on May 21, 2020 at 12:33 pm
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , ,

May 2020 Market Report

** Data in this report reflect market activity from April 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.

Here is the market overview:

And here is the breakdown for a couple of interesting statistics from April 2020:

  • At $416,500, the April 2020 Median Sales Price for single-family re-sale properties in Reno-Sparks combined for the month was $416,500, a slight 0.4% increase from March 2020, and up 10.5% April last year.

  • As seen in the chart above, the # of Closed Sales at dropped from 507 in March 2020 to 374 in April.  This marks a 26% decline in closed sales month-over-month, and nearly 30% fewer closed sales compared to last year.

Months Supply of Inventory (MSI) in April 2020 jumped back up 31% compared to March, recording 2.2 months supply.  This measure of inventory is also about 6% higher than in April 2019. MSI accounts for the time it would take to “sell out” of the Reno-Sparks inventory at the current rate of sale.  A balanced market is around 5-6 months of supply.  Therefore, this the low 2.2 months supply, we are still very much considered to be in a Seller’s Market.

The average # of Days from Listing to Contract in April 2020 was 39 days.  This is still quite a short period of time when looking back over the last few years.  The # of Days to Contract is about 7% lower than April 2019.  These averages account for all price ranges.

With Seller’s receiving an average of 98.9% of asking in April 2020, we have continued to see no significant change for this statistic overall.

One may wonder if coronavirus is having an effect on the percentage of distressed sales in Reno-Sparks.  At this time, the answer appears to be “no.”  In April 2020, Distressed Sales (short-sales and foreclosures) are nearly 50% lower than the same time last year.

Here is what is happening now… The Week Ending May 9, 2020:

After 4 straight weeks of an increase in New Contracts, the week ending May 9 saw a relative leveling out of New Contracts, with just a slight 2.2% decrease from the previous week.  Overall, the number of new Contracts for this week last year is down about 10%.

# of New Listings to hit the market the week ending May 9 increased 25% compared to the previous week.  The Reno-Sparks real estate market saw nearly 42% fewer new listings than the week ending May 11, 2019.

SUMMARY:

  • Real Estate in Nevada continues to be an “essential service.”  Governor Sisolak’s mandate to eliminate in-person open houses for all properties, and in-person showings of tenant/renter-occupied properties has been extended to May 30, 2020.   All owner-occupied and vacant properties may still be shown to prospective buyers with practice of social distancing, use of personal protective equipment and frequent 20-second hand-washing &/or hand-sanitizing.
  • Starting May 4, California Bay Area agents were allowed to show occupied properties and to stage vacant properties once again. The allowance for such activities could potentially mean an increase of activity in Nevada, a place where many Californias are expected to call their “new home.”
  • Lending qualification parameters have tightened, but the Mortgage Interest Rates are staying low!  For a super reputable, local lender recommendation, contact me.  I will be happy to connect you with the best!
  • Looking more closely at the last full week of activity (ending May 9) the # of New Contracts has leveled week-over-week, and the # of New Listings rose slightly.
  • While the sales volume took a hit in April, the Median Sales Price has held steady, largely due to buyer-demand keeping pace fairly stable rate of sale and continued low inventory.
  • Nationally acclaimed economist and author of the Blog “ECON 70” Elliot Eisenberg, PhD checked in again with the Reno-Sparks Association of Realtors.  This month, Elliot stands by last month’s assertion that the current recession is very different from previous recessions, and that it will be deep but relatively short.  Click HERE to watch the April 2020 “Monthly Economic Minute.”

Posted on May 14, 2020 at 6:06 am
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , , , ,

Weekly Watch (Week Ending May 2, 2020)

While COVID-19 continues to run its course, and businesses begin to safely re-open, many are left to wonder, “What is happening with the real estate market?”  “The Weekly Watch,” keeps a close eye on what is happening with sales and values in the Greater Reno-Sparks Region on a weekly basis.  We are here to provide you with the most up-to-date information to help you make informed decisions regarding your investments.   The graphs below represent activity for single-family residences (excluding condos, townhouses and new construction) from the week ending May 2, 2020 compared to the previous week and year.  The numbers are subject to change slightly, due to late reporting by real estate agents to Northern Nevada Multiple Listing Service.

 

Week-over-week, we saw a slight dip in the Median Sales Price from $414,000 to $402,500. The Median Sales price has been bouncing around the $400k mark since the much of the economy has been shut down due to COVID-19.  This statistic is reflective of properties that went into contract roughly 30 days ago (the common length of escrow for properties obtaining financing).

 

# of Closed Sales popped back up to 96, a 15.7% increase in unit sales volume week-over-week.  Our unit sales volume is about 1/2 of what is was during the same week last year.  Again, this statistic is reflective of properties that went into contract about 30 days ago.

 

The Percentage of List Price that Sellers are receiving has held steady over the last few weeks.  Sellers  received an average of 98.7% of List Price through the week ending May 2.

 

The average # of Days from Listing to Contract dropped again the week ending May 2, a showing of 20% decrease over the last 2 weeks.  Compared to this same week in 2019, the # of Days to Contract has increased 8%.

 

In the week ending May 2, the Active Inventory decreased 7.3% compared to the previous week.  The Active Inventory is about 30% lower than the same week in 2019.  This week’s Active Inventory count may be lower at this time due to an increase of properties going under contract, as seen later in this report.

 

After a significant spike in the # of Withdrawn, Temporarily Withdrawn, or Expired Listings from the previous week,  this pull-back activity has drastically dropped back down, approximately 70%.   This statistic falls in line with the same time period in 2019, when 25 listings were also Withdrawn or Expired.

 

Positive News!  The # of New Contracts/Pending Sales increased again from 121 to 149, a 23% increase week-over-week.  This is the fourth straight week that the market has shown an increase in New Contracts.
Looking more closely at the # of New Contracts/Pending Sales in the chart above, 5 of the 11 price ranges have shown an increase of New Contracts from the week ending April 25 to the week ending May 2.

 

After a doubling of the # of New Listings from the week ending April 18 to the week ending April 25, the # of New Listings dropped by 48% during the week ending May 2.  The # of New Listings compared to the same week in 2019 is down nearly 60%.

Summing It Up…

  • California Real Estate is nearly fully operational!  Property showings in California are now permitted for all properties (vacant AND occupied) and limited to entry by the agent and two buyers.  Property staging in many counties is allowed again.  Traditional open houses are still off-limits.
  • With increased activity in California, we are hopeful for a flow-over of increased new activity in Nevada.
  • Over the last few weeks, many Northern Nevada real estate professions (Realtors®, escrow/title officers and lenders) are reporting a great increase in activity in the last couple of weeks.  Just a few days ago, I learned that one escrow officer opened 8 new escrows in one day.  Excellent!
  • Reno-Sparks is seeing an increase of New Contracts over the last 4 weeks!  Again, we are hopeful this trend will continue in the coming weeks.
  • While unemployment is a major concern for many, we appear to find Buyers who are qualified and taking great advantage of low interest rates at this time.  If you are looking to purchase now and need to connect with a great lender, contact me.  I’ll hook you up!
  • For more information about specific property values and to search real estate for when YOU are ready to purchase/sell, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.

 


Posted on May 7, 2020 at 4:34 am
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , ,

Weekly Watch (Week Ending April 25, 2020)

Welcome to “The Weekly Watch,” a closer look at the real estate market in the Greater Reno-Sparks Region.  While we await the reintroduction of business activity in the coming weeks, I am providing the most up-to-date information to help you make informed decisions regarding your investments.   The graphs below represent activity for single-family residences from the week ending April 25, 2020 compared to the previous week and year.  The numbers are subject to change slightly, due to late reporting by real estate agents to Northern Nevada Multiple Listing Service.  The data excludes condos/townhouses and new construction.

 

The Median Sales Price continues to push upward 4.7% from $401,000 to roughly $420k week-over-week. The Median Sales price is also up 20% from this same week last year. This statistic is reflective of properties that went into contract roughly 30 days ago (the common length of escrow for properties obtaining financing).

 

# of Closed Sales dropped again during the week ending April 25, 2020.  20% fewer single family homes sold compared to the previous week ending April 18.  Our unit sales volume is down 45% compared to the same week in 2019.  Again, this statistic is reflective of properties that went into contract about 30 days ago.

 

Sellers are continuing to receive a high percentage of asking, 98.7% during the week ending April 25.  This statistic is fairly consistent when looking back to the previous week and year.

 

The average # of Days from Listing to Contract ticked down slightly (-4.1%) from week ending April 18 to April 25.  Days to Contract are 26.7% greater than last year, suggesting it is taking an average of 10 days longer to receive an acceptable offer.

 

In the week ending April 25, the Active Inventory was fairly steady, with only a 1.5% decrease compared to the previous week.  The active inventory is about 25% lower than the same week in 2019. This inventory includes properties of all price ranges.

 

During the week ending April 25, the number of single family residences that were either withdrawn from the market, expired, or were temporarily withdrawn from the market spiked significantly.  We saw 187% increase in the number of properties removed from the market compared to the previous week.  This figure is roughly 230% higher than the same week in 2019.

 

The # of New Contracts/Pending Sales increased again from 112 to 125, an 11.6% increase week-over-week.  In last week’s report, I noted that on April 18, I had 9 properties scheduled to show my buyers, and of those 9, 5 went into contract that day or shortly after. These properties ranged in asking price from $340,000 to $390,000.
This higher level of activity prompted me to look more closely at the # of New Contracts/Pending Sales broken down by price.  Above is a graph illustrating the pending activity level by price range.  Note that the $300k-$400k and $500k-$600k price ranges revealed more new contracts than the previous week and same period in time last year.

 

# of New Listings during the week ending April 25 nearly DOUBLED compared to the previous week.  The New Listing count slightly lower (-3.4% ) compared to the same week last year.  Will buyer demand keep up with a relative influx of homes on the market?  What price ranges are we seeing these new listings?  Check it out…

All price ranges (with the exception of $100k-$200k) saw a significant increase week-0ver-week in the # of New Listings.  Looking at the blue and gray lines, many price ranges also showed an increase year-over-year.

Summing It Up…

  • As we eagerly await Governor Sisolak’s upcoming directives to re-open businesses in Nevada, Owner-occupied homes and vacant properties are permitted to be shown by appointment.  Tenant-occupied properties are prohibited from showings. Traditional open houses are also not permissible.  
  • Social Distancing practices and use of personal protective gear (masks, sterilizing wipes, shoe coverings) are in fully effect.
  • GREAT NEWS!!  California Bay Area Realtors® may now show vacant AND occupied properties.  The Seller must not be present during showings and specific safety guidelines are followed. Commercial activity is also re-opened with the same rules applied.  Logically, if activity and sales increase in California, we should see a following of activity in Nevada, the landing spot for many people relocating from California.
  • Week-over-week, we saw a surge in New Listings across nearly all price points and an 11.6% increase of New Contracts week-over-week.
  • While sales volume has been declining over the last few weeks, we are seeing signs of hope with the increase of New Contracts, New Listings and re-opening of businesses on the horizon.
  • Mortgage Interest Rates are still low.  Contact me for a highly qualified lender recommendation to get pre-approved at your qualifying rate!
  • For more information about specific property values and to search real estate for when YOU are ready to purchase/sell, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.

 


Posted on April 29, 2020 at 10:09 pm
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged ,