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

• Median Sales Price, at $440,000 for single-family re-sale properties in Reno and Sparks held steady in September 2020, posting a mere 1% dip compared to August 2020, and has shown an increase of 11% year-over-year. 

• The Average Sold Price per Square Foot continues its upward trend we have been experiencing over the last several months.  Single-family residences sold in Reno-Sparks in September 2020 sold for an average of $249/sqft, a 5% increase month-over-month and an 10% increase year-over-year.

• Though the Average Sold Price per Square Foot is $249/sqft, once again, homes that sold in September 2020 for over $750k appear to be pulling this average upward.  Homes that sold between $1M and $1.5M averaged $327/sqft, and homes that sold for over $1.5M averaged $439/sqft!

• The # of Units Sold in September ticked up 4% month-over-month from 644 to 680.  The # of Units Sold is 12% higher than this same time last year.  Please note that homes closing in September likely went into contract in August 2020, accounting for a typical 30-day escrow.

• As seen in the graph above, the bulk of homes that closed escrow in September 2020 sold between $300k & $500K.  These sales accounted for 60% of the total market share.

• September’s Absorption Rate continued its downward trajectory and is at a new low of 0.7 Months Supply of Inventory. a staggering 71% drop year-over-year and a 25% decrease month-over-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 added to the market.  A balanced market is around 5-6 months of supply, therefore, this is a profoundly “seller’s market.”

• As just mentioned, a “Balanced Market” sees about 5-6 months of inventory.  Even the high-end luxury market is realizing only 3.5 Months Supply of Inventory, and is very much a “Seller’s Market” as well, while the $300k-$500k inventory is less than 1/2 a month of supply!

• The # of Days from Listing to Contract since the COVID 19 economic shut-down in March has averaged 36 days.  In September 2020 the overall average Days to Contract followed this trend.  Single family residences are taking about 30% less time to receive and acceptable offer this year than in September 2019.  These averages account for all price ranges.

• While homes priced $300k-$400k received an accepted offer an average of only 16 days from listing, the upper price points of $$1M+ did take an average of a few months to accept an offer.

• Over the last 4 months, the # of New Contracts has lingered around 720 per month.  During the month of September 2020 we saw 34% more new contracts than the same month last year and 8% fewer new contracts than the previous month.

• The # of New Listings to hit the market dropped 8% month-over-month, while decreasing 10% compared to September 2019.

SUMMARY:

• So why are folks moving to Northern Nevada?  They have recently found that they can work from anywhere… They are moving here for the jobs that are being created here… Their companies are moving them here.  They are purchasing their retirement homes (both ahead of and after their retirement date)… They loathe the tax burdens of our neighboring state… They are threatened by wildfires and/or have devastatingly lost their home because of them.  Pick your reason… the mass influx of new Northern Nevadans is real.
• While the Median Sale Price in Reno-Sparks is holding steady, so too are low interest rates.  Sub-3% interest rates for many qualified buyers may be keeping those buyers in the market.
• The combination of historically low 0.7 Months Supply of Inventory and high buyer demand continue to add fuel to the very hot residential real estate market today.
• The Average Sold Price per Square Foot continues is upward trend, and appears to be driven by the high-end luxury market.
• Average days from listing to contract remains low at 36 days.
• The # of New Contracts in September 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.

** 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.

** 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!

** 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.

** 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.

** 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.”