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November 2019 Market Report
** Data in this report reflect market activity from October 2019 compared to September 2019 and October 2019 compared to October 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 and new construction.
- October 2019 Median Sales Price for single-family re-sale properties in Reno-Sparks (excluding condominiums/townhouses) rose slightly by 1.3% from September 2019 to October 2019 ($395,000 to $399,995). The Median Sales Price is up about 4% from this same time last year.
- # of Units Sold single-family residences dipped from 573 to 546 (-4.7%) from September to October 2019. However, unit sales were up about 16.7% from the same time last year.
- Average # Days to Contract has risen sharply, both from September to October 2019 and from the same time last year.
- The market saw a minor decrease in the Average Sold $/Sqft, dropping just 1.5% from September to October 2019, and a mini increase of 1.2% from October of last year.
CONCLUSIONS:
- The above statistics are extremely consistent with typical market trends this time of year.
- Though the unit sales are down from the previous month, they were significantly more sold this year compared to last year.
- Average $/square foot sold is holding fairly steady at $223/sqft.
- Data for inventory and property status is missing from RSAR reports this month and will be updated when available.
- Each neighborhood/area in Northern Nevada Regional MLS has its own micro-market. For specific information about YOUR neighborhood, contact me at 775.233.0682 or email me at dhallerbach@intero.com.
September 2019 Market Report
** Data in this report reflect market activity from August 2019 compared to July 2019 and August 2019 compared to August 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 and new construction.
HIGHLIGHTS:
- August 2019 Median Sales Price for single-family re-sale properties in Reno-Sparks (excluding condominiums/townhouses) dipped slightly by 1.5% from July 2019 to August 2019 ($405,000 to $399,000). The Median Sales Price is up 7.6% from this same time last year.
- # of Units Sold at 601 single-family homes held fairly steady from July to August 2019. Unit sales are up about 5.1% from the same time last year.
- # Days to Contract continues to increase and are up significantly from the same time last year. It is now taking an average of 34% more days to receive an accepted offer on a single family home.
- The New Listings count was down about 4% from July 2019 and 10% higher than the same time last year.
- Months Supply of Inventory (MSI) for August 2019 was 2.3. “Months Supply of Inventory” 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.
CONCLUSIONS:
- How do we account for the 7.6% increase in the Reno-Sparks median sales price from the same time last year? Check out the distribution of unit sales by price point in the graphs below. It appears as though a slight increase in sales at the $400k-$500k price range may be the reason.
- Sales activity continued to slow at the end of summer. This is a typical seasonal trend, as illustrated in the graph below. However, we experienced a 5-year low of only 353 single family homes sold in January of this year. The number of units sold in a month peaked at 851 in June of 2017.
- Sellers are advised to be patient. It’s taking a bit longer to get a buyer into contract than in the spring and early summer. However, as seen in the graph below, this is also a typical seasonal trend as well. Competitive pricing and home preparation and maintenance are the key to selling your home most quickly.
- Policy changes should help with the condominium market. Last month, the National Association of Realtors announce that the Department of Housing and Urban Development is implementing changes in policy and regulations October 15, 2019 that will likely help boost condominium sales. Currently, only 6.5% of the condo projects in the U.S. are eligible for the FHA mortgage insurance program. But the coming new policies should result in more condos available for purchase with FHA financing and have a positive impact on buying opportunities for many first-time home buyers. For more information on the topic, click HERE for the September 2019 RSAR “To The Point” video.
- If you need an experienced real estate professional to assist with purchasing a home or preparing, staging and marketing your home to sell, please don’t hesitate to contact me directly at dhallerbach@intero.com or 775-233-0682.
August 2019 Market Report
** Data in this report reflect market activity from July 2019 compared to June 2019 and July 2019 compared to July 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 and new construction.
HIGHLIGHTS:
- July 2019 Median Sales Price for single-family re-sale properties in Reno-Sparks (excluding condominiums/townhouses) increased 1.3% from June 2019 to July 2019 ($400,000 to $405,000). The Median Sales Price jumped 5.2% from this same time last year.
- # of Units Sold in July 2019 increased 4.2% from the previous month to 746 units. Unit sales are also up about 4% from the same time last year.
- # Days to Contract continues to increase and are up significantly from the same time last year. It is now taking an average of 30% more days to receive an accepted offer on a single family home.
- # New Listings is down 5% from June 2019 and up just 3.6% since last year.
- Months Supply of Inventory (MSI) has increased about 6% since June 2019, and increased 10.4% since the same time last year. This is still considered to be a “Seller’s Market.” “Months Supply of Inventory” is defined as the time it would take for the current inventory to be completely sold out if sales remained at their current rate. A “balanced inventory market” is about 6 MSI.
CONCLUSIONS:
- Curious about the median sales price in Reno, apart from Sparks? Though the median in Reno dipped 2.5% from May to June this year, it rallied 2% from June to July. Sparks also experienced and increase of 1.6% in the median sales price in the last month. In general, the median is up in BOTH cities 4.5-5% year-over-year.
- We are seeing a slow down in activity here at the end of summer. This is a typical seasonal phenomenon. With buyers and potential sellers wrapping up their travels and getting their children back in school, this may account for the increase in number of “days to contract” at this time.
- Ever wonder how buyers are making their purchases in Northern Nevada these days? We took a look at sales by price range over the last 3 months. Below is the breakdown of financing vs. cash purchases. Pretty interesting…
- Mortgage interest rates continue to stay low. Borrowers with good credit are seeing rates sub-4%. Visit MortgageNewsDaily.com for today’s prevailing rates. Though remember, that a borrower’s actual interest rate is directly related to his/her financial and credit standings, and can vary by loan program. Need a lender? Contact me today for an awesome local referral!
- If you need an experienced real estate professional to assist with preparing, staging and marketing your home to sell, please don’t hesitate to contact me directly at dhallerbach@intero.com or 775-233-0682.
July 2019 Market Report
** Data in this report reflect market activity from June 2019 compared to May 2019 and June 2019 compared to June 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 and new construction.
HIGHLIGHTS:
- June 2019 Median Sales Price for single-family re-sale properties in Reno-Sparks combined (excluding condominiums/townhouses) increased 2.6% from $390,000 in May 2019 to $400,000. We saw a 4.7% increase in the Median Sales Price from this same time last year.
- # of Units Sold in June 2019 declined 18% from May 2019 to 555 units. Unit sales are also down nearly 8% from the same time last year.
- # Days to Contract in June 2019 has dropped from 37 days to 44 days, a 30% increase compared to the previous month. It is taking 45% longer to put a home into contract since the same time last year.
- # New Listings has also declined nearly 20% from May 2019 and declined 5.4% from June 2018.
- Months Supply of Inventory (MSI) has increased 23% since May 2019, and dropped 23% since the same time last year. This is still considered to be a “Seller’s Market.” “Months Supply of Inventory” is defined as the time it would take for the current inventory to be completely sold out if sales remained at their current rate. A “balanced inventory market” is about 6 MSI.
CONCLUSIONS:
- Though the Reno-Sparks Region saw an increase in Median Sales Price of 2.6% from May to June 2019, the increase appears to be due to a larger median increase in Sparks. While the median sales price in Reno dipped 2.5%, the Sparks median sales price surged 6.4% month-over-month.
- Buyers are picky. Maintaining, staging, properly preparing, and presenting your home are all very important steps when listing and selling in today’s market. Due to the increase of inventory, with a little more competition in the marketplace, these calls to action are more important than ever. Hiring the right Realtor to assist you with home preparation is critical.
- The current decline of new listings and units sold, combined with the increase in the # of days to contract appears to have led to an increase in inventory. Though it is still a “Seller’s Market” buyers may be able to negotiate more than in past months.
- Mortgage interest rates continue to stay low. Borrowers with good credit are seeing rates sub-4%. According to Freddie Mac, the data suggests the economy is weakening but is still on very solid ground with high consumer confidence and a strong labor market. Mortgage rates have leveled out and this is encouraging.
- If you need an experienced real estate professional to assist with preparing, staging and marketing your home to sell, please don’t hesitate to contact me directly at dhallerbach@intero.com or 775-233-0682.
June 2019 Market Report
** Data in this report reflect market activity from May 2019 compared to April 2019 and May 2019 compared to May 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 and new construction.
HIGHLIGHTS:
- May 2019 Median Sales Price for single-family re-sale properties (excluding condominiums/townhouses) increased 4% to $390,000 compared to the previous month. The Median Sales Price was also up 4% from the same time last year.
- Unit Sales in May 2019, the number of sold units rose increased 22.6%. Unit sales are 13% greater than the same time last year.
- # Days to Contract in May 2019 has dropped from 45 days to 37 days, a 14% decrease compared to the previous month. Sellers of single family residences are accepting offers more quickly than we experienced earlier in the year. However, in May 2019, getting a property into contract still took 11.4% longer compared to last year, on the average.
- # New Listings are up nearly 10% from April 2019, typical for this time of year. 14.4% greater number of new listings hit the market compared to May 2018.
- Active Inventory has improved since the same time last year, increasing 11% to 1,201 active listings in May 2019. However, even though Months Supply of Inventory shows an increase of nearly 20% from last year to 1.8 MSI, we are still technically in a Seller’s Market. “Months Supply of Inventory” is defined as the time it would take for the current inventory to be completely sold out if sales remained at their current state. A “balanced inventory market” is about 6 MSI.
CONCLUSIONS:
- Stable and healthy growth with regard to median sales price lies at 2-3% per year. Year over year, an increase of 4% here in Reno-Sparks is perceived to be a healthier growth rate.
- Homes that are well taken care of, and priced close to market value compared to similar properties in their neighborhood are getting snatched up more quickly. We are seeing multiple offers again, and homes selling very close to asking price.
- If purchasing a home in today’s market is your priority, take action. Inventory is still low, so waiting until next week to see a home you love that comes to market today will likely not cut it. If it looks great and is priced right, it will probably be under contract for purchase before you’ve even had a chance to see it. If you like it, call me and we’ll go see it!
- Mortgage interest rates continue to stay low. According to Freddie Mac, 30-year fixed rate mortgage rates have neared a 2-year low. This is encouraging for buyers who have needed a little extra time to find the right home.
- Market statistics do vary by neighborhood. For market data and statistics in YOUR specific neighborhood, contact me now. I am happy to help!
May 2019 Market Report
** Data in this report reflect market activity from April 2019 compared to March 2019 and April 2019 compared to April 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 and new construction.
HIGHLIGHTS:
- April 2019 Median Sales Price for single-family re-sale properties (excluding condominiums/townhouses) increased 2.2% compared to March 2019. The Median Sales Price appear stable from the same time last year, showing only a .8% increase from April 2018.
- Unit Sales in April 2019 rose significantly from the previous month (519 compared to 443), an increase of 13.6%. Unit sales are 5.5% greater than the same time last year.
- # Days to Contract in April 2019 has dropped from 58 days to 45 days, a 21% decrease. Sellers of single family residences accepting offers more quickly than we experienced during fall and winter months. However, in April 2019, getting a property into contract still took 40% longer compared to last year, on the average.
- # New Listings are up nearly 30% from April, an indication of typical spring action. 17.5% greater number of new listings hit the market compared to April 2018.
- Active Inventory has improved greatly since the same time last year, increasing 33.7% to 1,012 active listings in April 2019. However, even though Months Supply of Inventory shows an increase of 26% from last year to 1.9 MSI, we are still technically in a Seller’s Market. “Months Supply of Inventory” is defined as the time it would take for the current inventory to be completely sold out if sales remained at their current state. A “balanced inventory market” is about 6 MSI.
CONCLUSIONS:
- We are seeing typical spring action in the Reno-Sparks Real Estate market… More new listings hitting the market, more units sold, fewer days to contract and an uptick in the median sales price.
- Starting to see an increase in median sales price. With inventory still low, and increased buyer activity and demand during the typical selling season, buyers find themselves competing against other buyers again. This could mean an overall increase in the median sales price in our region should the trend continue.
- Why no MAJOR increase in median sales price with inventory so low? Remember, NEW home construction inventory is not included in this report. With new home construction on the rise in all parts of Reno-Sparks, there is more inventory out there that factors into what we are actually experiencing. This may be a contributing factor to the suppression of median sales price in the resale market.
- Mortgage interest rates are still relatively low compared to the higher rates experienced last year. This should help with affordability to a degree .
- Market statistics do vary by neighborhood. For market data and statistics in YOUR specific neighborhood, contact me now. I am happy to help!
April 2019 Market Report
** Data in this report reflect market activity from March 2019 compared to February 2019 and March 2019 compared to March 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 and new construction.
HIGHLIGHTS:
- March 2019 Median Sales Price for single-family re-sale properties (excluding condominiums/townhouses) declined only 1.6% compared to February 2019. The Median Sales Price appear stable from the same time last year. Below is a graph showing the leveling of the market over the last several months. Green line represents single family stick built and blue line represents condos/townhouses.
- Unit Sales in March 2019 were significantly lower than the same month last year. The number of single family homes sold at 344 homes dropped 19% compared to March 2018 but is increased about 23% from the previous month… typical during spring months.
- # of Days to Contract in March 2019 has dropped about 15% from the previous month, so homes are going under contract to sell more quickly than we experienced during fall and winter months. However, it is taking nearly twice as long compared to last year, on the average.
- Active Inventory has improved since the same time last year, increasing 26% to 891 active listings in March 2019. However, even though Months Supply of Inventory shows an increase of 56% from last year to 2 MSI, we are still technically in a Seller’s Market. “Months Supply of Inventory” is defined as the time it would take for the current inventory to be completely sold out if sales remained at their current state. A “balanced inventory market” is about 6 MSI.
- # of New Listings from last year to this year are the same as volume as last year, but up 36% from the previous month.
CONCLUSIONS:
- Many of our comments here are similar to last months’ conclusions. Very little has changed in the market from February to March.
- Longer days to contract… why? I believe we are still seeing the effects of the challenging driving conditions many buyers faced during winter March 2019. The weather did improve slightly from previous months, but this factor appears to have played a role in our local market.
- Leveling of median sales price over the last year… why? Our opinion regarding leveling of the market began last year when interest rates elevated. During the last few weeks, the rates have returned to about where they were in early 2018.
- Drop in unit sales from last year to this year… why? Again, perhaps weather played a part in this again as well.
- Mortgage interest rates have recovered since being raised 4 times last year. They are back down to a 12 month low. This should help with affordability to a degree.
- Consumer confidence is up, despite domestic and global political distractions. Buyers appear to be getting off the fence and moving toward real estate investment in Northern Nevada.
- What else is affecting the resale market? Reno-Sparks Association of Realtors does not currently include new construction in the market statistics (having pulled data from Northern Nevada Regional MLS). Currently, there are several large scale developments in the Great Reno-Sparks Region. Our theory is that these projects absorbing many of the buyers who are purchasing in Reno-Sparks who would have otherwise purchase an existing home. The new construction activity could very likely be playing a part in the decline of the rate and volume of sales of re-sale properties in our region.
- All this being said… A slowing of the real estate market during the last year may very well me a blessing, as affordability for the future of Reno-Sparks is a concern.
- For market stats in your specific neighborhood, contact me now!
March 2019 Market Report
** Data in this report reflect market activity from Feb 2019 compared to Jan 2019 and Feb 2019 compared to Feb 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 and new construction.
HIGHLIGHTS:
- February 2019 Median Sales Price for single-family re-sale properties (excluding condominiums/townhouses) is up 2.8% from compared to January 2019. The Median Sales Price appear stable from the same time last year.
- Unit Sales in February 2019 were significantly lower than the same month last year. The number of single family homes sold at 344 homes dropped 22.5 % compared to February 2018.
- # of Days to Contract in Feb 2019 has dropped about 7% from the previous month, so homes are going under contract to sell more quickly than we’ve been experiencing lately. However, it is taking nearly twice as long as it did in Feb 2018, on the average.
- Active Inventory has improved since Feb 2018, increasing 35.5% to 932 active listings in Feb 2019. However, even though Months Supply of Inventory has increased 75% from last year to 2.7 MSI this year, we are still technically in a Seller’s Market. “Months Supply of Inventory” is defined as the time it would take for the current inventory to be completely sold out if sales remained at their current state. A “balanced inventory market” is about 6 MSI.
- # of New Listings from last year to this year are down 27%, and down 8.7% from the previous month.
CONCLUSIONS:
- Longer days to contract… why? Have you been outside lately? This has been one of the most consistently wet and snowy winters in recent history. Weather has slow or eliminated travel for buyers, many of whom are traveling from California.
- Increase in median sales price… why? We are personally starting to see that when houses are priced close to market value, multiple offers are happening again. This may have played a role in the medial sales price increasing from Jan to Feb 2019.
- Drop in unit sales from last year to this year… why? Perhaps weather played a part in this as well.
- Mortgage interest rates have recovered since being raised 4 times last year. They are back down to a 12 month low. This should help with affordability to a degree.
- Consumer confidence is up, despite domestic and global political distractions. Buyers appear to be getting off the fence and moving toward real estate investment in Northern Nevada.
- What else is affecting the resale market? Reno-Sparks Association of Realtors does not currently include new construction in the market statistics (having pulled data from Northern Nevada Regional MLS). Currently, there are several large scale developments in the Great Reno-Sparks Region. Our theory is that these projects absorbing many of the buyers who are purchasing in Reno-Sparks who would have otherwise purchase an existing home. The new construction activity could very likely be playing a part in the decline of the rate and volume of sales of re-sale properties in our region.
- All this being said… A slowing of the real estate market during the last year may very well me a blessing, as affordability for the future of Reno-Sparks is a concern.
- For market stats in your specific neighborhood, contact me now!
February 2019 Market Report
** Data in this report reflect market activity from Jan 2019 compared to Dec 2018 and Jan 2019 compared to Jan 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).
- Units Sold in Reno-Sparks: 317 sales of existing single family homes sold in Jan 2019; a decrease of 22% from January 2018 and a 17% decrease from one month ago, December 2018.
- Units Sold in Reno (including North Valleys): 232 sales of existing single-family homes; a decrease of 20% from last year and a 10% decrease from the previous month.
- Median Sales Price (single family stick-built in Reno-Sparks): $362,000 MSI in Jan 2019. An increase of 1% percent from January 2018 and a 1% decrease from December 2018.
- Median Sales Price (single family stick-built in Reno ONLY): $377,700 MSI in Jan 2019; a 4 percent increase from January 2018, and a 1 percent decrease from December 2018.
- Median Sales Price (condominium/townhomes in Reno-Sparks): $183,500 MSI in Jan 2019; a 5% increase from a year ago.
- Median Sales Price (condominium/townhomes in Reno ONLY): $174,000; a 1% decrease from last year.
Reno-Sparks 2018 Market Recap
** Data in this report reflect market activity of single homes (excluding condos & townhouses) in 2018 compared to 2017. Information is gathered from the Reno-Sparks Association of Realtors® (RSAR) for the Greater Reno-Sparks region unless otherwise noted.
The Highlights.
• The median price at the end of 2018 is up 5% to $362,000 from the same time last year, and down 4% from November 2018. A look at the graphs below show the median sales price activity from year-to-year. Notice the same general trends, but with a more pronounced drop in the average from Oct-Dec 2018.
• Unit sales in December 2018, at 361 single family residences sold, are about the same as January 2017. Again, note in the graphs below, the cyclical trend with unit sales peaking in summer months and declining in winter months.
• As seen in the graphs below, 2018 followed the same general trend for New Listings brought to market, but the end of 2018 data showed about 10% fewer new listings compared to 2017.
• Reno-Sparks market remains in a Seller’s Market, with an average of 3 Months Supply of Inventory (MSI). MSI is the time it would take to exhaust the active inventory at the current rate of sales if no new listings were added to the market. Though the inventory for buyers has improved in Q4 of 2018, the months supply is still well below a balanced market that is 6 months supply.
• Compared to 2017, 2018 realized more units sold over the $400k price point and fewer sold under $300k. In the Luxury Market, 6.6% more homes in the $750k-$1M price range, and 53% more homes in the $1M-$10M price range sold in 2018.
• While affordability is still a concern in the Reno-Sparks real estate market, it is slightly improved from last near. In a nutshell, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. Any value above the 100 point threshold indicates that a typical family will be less likely to qualify for a mortgage on a home in a given area.
The Conclusions
• The market has slowed down. In addition to the usual seasonal slow-down, interest rate increases, uncertainty in the stock market, and I have now even heard grumblings that the government shut down all appear to have contributed to a simmering of the real estate market.
• Yet still a seller’s market. Months supply of inventory has been hovering around 3 Months of Supply. A balanced market holds 6 Months of Supply. Months Supply of Inventory is the time it would take to completely sell out of the existing inventory if the rate of sales remains the same.
• Sellers still receive close to asking. Sellers are receiving an average of 98.3% of asking price.
• Yet sellers… continue to be patient. The market is actually appears to be normalizing, which is a good thing… except when you are a Seller who is eager to sell. It’s currently taking an average of 2 months to reach an agreed upon contract, up 10% from the same time last year. Sellers who price their homes as close to market value as possible have a higher probability of receiving an acceptable offer more quickly.
