January 2021 Market Report

** Data in this report reflect market activity from DECEMBER 2020 compared to the previous month and year.  Information is gathered from the Reno-Sparks Association of Realtors® (RSAR) for the Greater Reno-Sparks region via Northern Nevada Regional Multiple Listing Service (www.nnrmls.com).  Data accounts for single-family resale residences only, and excludes townhouses/condos, manufactured/modular and new construction.

  • For the second straight month, the Median Sales Price for single-family, re-sale properties in Reno and Sparks combined, held steady at $450,000.  The Median Sales Price is 14% higher compared to the same time last year when it was $394,000.

  • WOW!  LOOK HOW FAR WE’VE COME?  Over the last 5 years, the Median Sales Price for single family residences in just RENO alone has increased 70%, from $295,000 to $1/2 Million!

  • The Average Sold Price per Square Foot has jumped 16.5% during December 2020 compared to December 2019, and has crawled up 3% month-over-month.  This average represents properties sold over ALL price ranges.  For a breakdown of the Average Sold Price per Square Foot by Price Range, refer to the chart below.

  • Homes that sold in December 2020 under $1M averaged around $246/square foot, while the upper price ranges cashed-in at $340/square foot for the 24 homes that sold in the $1M to $1.5 M range, and $443/square foot for the 13 homes that sold over $1.5M.

  • The # of Units Sold has steadily declined over the last 4 months, a common market trend that usually begins mid-fall and runs through mid-winter.  We saw a slight increase in the number of single-family homes sold in Reno-Sparks (4% more) in December 2020 compared to December 2019.

  • See above for the price distribution of single family homes that sold in Reno-Sparks during December 2020.

  • Just when we thought the housing inventory could not get any more minimal, the Months Supply of Inventory dropped 32% month-over-month and is a staggering 74% lower than last year. MSI absorption rate represents the time it would take to completely “sell out” of the Reno-Sparks inventory at the current rate of sale if no new listings were added to the market.  We currently have about a 2-week supply of inventory.  A balanced market is around 5-6 months of supply, therefore, we are still very much in a “Seller’s Market.”

  • The Absorption Rate across all all price-points is well-below a balanced market.  The rate of sales in the high end luxury market over $1.5M is 3.1 months supply, also quick-moving in today’s fast-moving real estate market.

  • Properties across all price points are accepting offers and going into contract an average of 31 days from listing to acceptance.  Single Family Residences are receiving acceptable offers 60% more quickly than December 2019

  • The number of days from Listing to Contract varied greatly amongst all price ranges in December 2020.  Homes priced from $1M to $1.5M appeared to be a particularly attractive market to buyers this month, only spending an average of 38 days on market before accepting an offer.

  • The # of New Contracts month-over-month decreased just 8% from 431 to 397.  However, the number of New Contracts posted in December 2020 was 14% greater than last year… encouraging news!

  • The # of New Listings available during December 2020 declined 20% since November 2020.  however, 13% more New Listings hit the market this December compared to December 2019.

SUMMARY:

  • Over the last several months, the Reno-Sparks real estate market has realized an extremely high absorption rate, meaning the turnover of listings to sales is rapid.  In addition, the supply of homes for sale has shrunk drastically.  We only have about 2 weeks supply of inventory.
  • During a season when we can typically see a dip in prices, the Median Sales Prices for single family residences has held steady at $450,000 for 2 months straight. New construction, condominiums, and condos/townhouses are not included in this statistic.
  • The Average Sold Price per Square Foot is 16.5% higher than November 2019 at $260/sqft.
  • Single-family residences continue to move very quickly at an average of 31 days from listing to contract over all price ranges, 60% faster than this same month last year.
  • 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.  In a market that demands a level head to navigate you through a successful purchase or sale, I’m your girl… so happy to help!  Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682.

Posted on January 14, 2021 at 5:12 am
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , , ,

December 2020 Market Report

** Data in this report reflect market activity from NOVEMBER 2020 compared to the previous month and year.  Information is gathered from the Reno-Sparks Association of Realtors® (RSAR) for the Greater Reno-Sparks region via Northern Nevada Regional Multiple Listing Service (www.nnrmls.com).  Data accounts for single-family resale residences only, and excludes townhouses/condos, manufactured/modular and new construction.

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

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

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

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

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

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

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

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

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

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

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

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

SUMMARY:

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

Posted on December 17, 2020 at 7:34 am
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , ,

November 2020 Market Report

** Data in this report reflect market activity from OCTOBER 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 $455,000 for single-family re-sale properties in Reno and Sparks jumped up again 3.4% month-over-month, and is 13.8% higher than October 2019.

  • The Average Sold Price per Square Foot held fairly steady month-over-month at $250/square foot.  This average represents properties sold over ALL price ranges.  For a breakdown of the Average Sold Price per Square Foot, refer to the chart below.  The October 2020 Average Sold Price per Square Foot is 11.7% greater than October 2019.

  • Homes that sold in October 2020 under $600,000 averaged around $235/square foot.  While the upper price ranges pulled in bigger numbers at $312/square foot for the $1M to $1.5 M range, and $414/square foot for homes that sold over $1.5M.

  • The # of Units Sold in September dropped 11.5% month-over-month from 680 to 6169.5% more properties sold in October this year compared to October 2019.  The inventory that sold in October most likely went into contract in September.

  • As seen in the graph above, much like the activity the previous month, the bulk of homes that closed escrow in October 2020 sold between $300k & $500K.  These sales accounted for 55% of the total market share.

  • The Absorption Rate in Reno/Sparks continues to plummet to only 0.6 Months Supply of Inventory. a significant 71% drop year-over-year and a 17% 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, we continue to experience a major “seller’s market.”

  • The Absorption Rate across all all price-points is well-below a balanced market.  Even high-end, luxury  properties priced over $1.5M saw only 2.3 months supply of inventory during October 2020.

  • Properties continue to spend a very short period of time on-market before going under contract.  Over all price-points, the average days from listing to accepted offer in October 2020 was 34 days.  Properties are moving 41% more quickly into contract than October 2019. 

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

  • The # of New Contracts over the last several months has held fairly steady.  During the month of October 2020 we saw 21% more new contracts compared to October 2019.  No significant change was noted in the # of New Contracts month-over-month.  

  • The # of New Listings to come to market during October 2020 dropped another 8.5% month-over-month, while increasing 11.5% compared to October 2019.

SUMMARY:

  • While the weather in Northern Nevada has cooled, the real estate market has most certainly NOT!  Inventory remains staggeringly low at 0.6 month supply of inventory and indicates continued high buyer-demand and a rapid rate of sale.
  • Low inventory and high buyer demand continue to place heavy upward pressure on prices, as seen in another jump in the Median Sales price.  At $455,000, the Median Sales Price is 3.4% higher month-over-month and 13.5% greater year-over-year.
  • The Average Sold Price per Square Foot is 11.7% higher than October 2019.
  • Average days from List-To-Contract remains low at 34 days.
  • The # of New Contracts in October 2020 held steady month-over-month.  The New Contract count in October was 21% higher than the same time last year.
  • 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 November 17, 2020 at 12:22 am
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , , , ,

October 2020 Market Report

** 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.

Posted on October 15, 2020 at 1:49 pm
Denise Hallerbach | Posted in Reno-Sparks Market Report | Tagged , , , ,

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 , , ,