Weekly Watch (Week Ending April 25, 2020)
All price ranges (with the exception of $100k-$200k) saw a significant increase week-0ver-week in the # of New Listings. Looking at the blue and gray lines, many price ranges also showed an increase year-over-year.
Summing It Up…
- As we eagerly await Governor Sisolak’s upcoming directives to re-open businesses in Nevada, Owner-occupied homes and vacant properties are permitted to be shown by appointment. Tenant-occupied properties are prohibited from showings. Traditional open houses are also not permissible.
- Social Distancing practices and use of personal protective gear (masks, sterilizing wipes, shoe coverings) are in fully effect.
- GREAT NEWS!! California Bay Area Realtors® may now show vacant AND occupied properties. The Seller must not be present during showings and specific safety guidelines are followed. Commercial activity is also re-opened with the same rules applied. Logically, if activity and sales increase in California, we should see a following of activity in Nevada, the landing spot for many people relocating from California.
- Week-over-week, we saw a surge in New Listings across nearly all price points and an 11.6% increase of New Contracts week-over-week.
- While sales volume has been declining over the last few weeks, we are seeing signs of hope with the increase of New Contracts, New Listings and re-opening of businesses on the horizon.
- Mortgage Interest Rates are still low. Contact me for a highly qualified lender recommendation to get pre-approved at your qualifying rate!
- For more information about specific property values and to search real estate for when YOU are ready to purchase/sell, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.
Weekly Watch (Week Ending April 18, 2020)
# of New Listings during the week ending April 18 declined 19.5% compared to the previous week, and a staggering 54% compared to the same time last year.Will this low inventory keep our prices steady? We shall see…
Summing It Up…
- With the use of a “Coronavirus Property Entry Advisory & Declaration,” and strict practice of social distancing guidelines, real estate activity in Nevada continues.
- Properties in Nevada are shown by appointment only. Owner-occupied homes and vacant properties are permitted to be shown, while all tenant-occupied properties are prohibited from showings. Traditional open houses are also not permissible.
- Though sales volume, new contracts and new listings are significantly down compared to the same time period last year, single-family home prices do not seem to be affected. Median Sales Price, as seen in the above chart, is hovering around $400k and even appears to be edging up since mid February.
- Mortgage interest rates are still VERY LOW… For home purchase and re-financing information and rates that apply to you, contact me, and I’ll introduce you to a reputable local lender.
- While growing unemployment is still a major concern, we look forward to the return of business activity throughout the US and the continuance of our thriving Nevada economy.
- While many Californias currently are suffering an economic hit, our suspicion is that those who were already planning a relocation to Nevada will be even more motivated once their feet are back on the ground. We just need to get on the other side of “the curve.”
- For more information about specific property values and to search real estate for when YOU are ready to purchase/sell, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.
April 2020 Market Report
** Data in this report reflect market activity from March 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:
MEDIAN SALES PRICE
- At $415,000, the March 2020 Median Sales Price for single-family re-sale properties in Reno-Sparks combined is recorded as 12.5% higher than March of last year, and up 6% from February 2020.
# OF UNITS SOLD
- As seen in the chart above, the # of Closed Sales at 502 increased from February approximately 10% and increased 9.6% from March 2019.
MONTHS SUPPLY OF INVENTORY
Months Supply of Inventory (MSI) in March 2020 was substantially lower than March of 2019, a drop of 31.1%. 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. March 2020 posted MSI of 1.5 months, suggesting we are still in a Seller’s Market.
# OF NEW CONTRACTS
The number of listed homes that have gone int0 contract (accepted offer) has decreased about 7% since February 2020. This statistic is also down 13% from the same time last year, and is likely due to the shutdown of many of our industries in the US due to COVID-19. Spring is typically the beginning of the “selling season” with new contracts increasing into June-July each year.
#OF NEW LISTINGS
The biggest surprise… # of New Listings actually rose 19.4% from February to March 2020. There was no significant change in the # of New Listings compared to March 2019, indicating that in March, Sellers were still needing to list in order to sell, even during the pandemic.
WHAT’S HAPPENING NOW??
CLOSED SALES THE WEEK ENDING APRIL 11, 2020
Let’s take a closer look at what is happening more recently … As a result of the drop in new contracts about 1 month ago, and some cancelled escrows (likely many due to Coronavirus), the # of Closed Sales the week ending April 11 took a nose-dive 50% since the week ending March 28. Only 66 single family residences in the Greater Reno-Sparks region closed escrow the week ending April 11.
NEW CONTRACTS THE WEEK ENDING APRIL 11, 2020
Though sales volume overall was down the week ending April 11, 88 single-family homes went into contract, an increase of 6% from the previous week.
NEW LISTINGS THE WEEK ENDING APRIL 11, 2020
The # of New Listings has been bouncing around the last several weeks. From the week ending April 4 to the week ending April 11, volume of New Listings has dropped roughly 21%.
SUMMARY:
- Real Estate in Nevada is an “essential business.” Though Governor Sisolak has mandated that open houses and showings of tenant/renter-occupied properties cease, owner-occupied and vacant properties may still be shown to prospective buyers. Social distancing, along with use of face masks/coverings, hand sanitizing wipes, gloves, 20-second hand-washing and removal of shoes/use of painter booties are being exercised by Realtors and their clients.
- Santa Clara County, and other Bay Area counties have imposed additional tighter restrictions such as no showings of ANY occupied properties. This is significantly impacting the real estate market in these areas, resulting in a drop in home sales volume there. Many prospective CA sellers are Nevada’s buyers. We look forward to when CA government lightens the restrictions on the real estate industry, allowing more completion of transactions that then flow into Nevada as purchases.
- Though Mortgage Interest Rates are the lowest they have been in the last year, mortgage lenders have tightened their qualification parameters. New purchase and refinance conditions have changed through the course of the pandemic due to economic and employment issues, and jumbo loans (those valued above the conforming loan limit of $510,400.) have been pulled back. Learn more at CNBC.com.
- A decline in the # of New Contracts in March is an indicator of decrease sales volume in the next couple of months. As the number of new coronavirus infections decreases, the economy and employment recover, and we return to more “normal” activity, many economists predict that the housing market will make a quick recovery and housing prices may not be affected.
- CLICK HERE to hear nationally acclaimed economist and author of the Blog “ECON 70” Elliot Eisenberg, PhD. Elliot shares his thoughts about the current recession, the recovery of the economy and what should happen in real estate.
Market Report (Week Ending 4/4/2020)
- Real Estate in Nevada is still deemed an “essential business.” Properties are being showed by private appointment only, with strict adherence to social distancing guidelines.
- The number of units sold declined 21% over the last two full weeks.
- However, the number of new listings and new contracts actually ROSE indicating ACTIVITY IS HAPPENING in our local market. Will we started seeing a few more homes available for purchase as some Sellers stick to their plans of listing in spring? What will happen to the median sales price? Only time will tell.
- Mortgage interest rates tumbled again last week, but are still considered to be volatile for a number of reasons explained in WashingtonPost.com. For home purchase and re-financing information and rates that apply to you, contact me, and I’ll introduce you to a reputable local lender.
- While unemployment is on the rise, there are still Buyers in the market with good job security who are wanting in making a purchase, and doing so.
- For more information about specific property values and to search real estate for when YOU are ready to purchase/sell, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.
- Get plenty of sleep. It is suggested that adults should shoot for a minimum of 7 hours, teens aim toward 8-10 hours and younger children & infants target 14 hours of sleep per day.
- Exercise. According to PubMed Central, moderate exercise boosts the effectiveness of vaccines in people with compromised immune systems. Ideas for moderate exercise… a brisk walk, a light hike, jogging, bicycling, snow-shoeing.
- Stay hydrated. MayoClinic.org recommends that men drink 3.7 liters of fluids per day, and women consume 2.7 liters per day.
- Control your stress levels. Brain & Behavior Health Institute Research Foundation offers some fantastic recommendations for “How to Stay Mentally Healthy Amidst the COVID-19 Pandemic.”
- Load up on vitamins. Some of the more beneficial vitamins for boosting the immune system include A, C, E, B6, D, and minerals like zinc, iron, and selenium.
- Fuel yourself with whole plant foods. Foods rich in antioxidants and nutrients help combat harmful pathogens. Suggestions include citrus fruits, red bell peppers, broccoli, kale, garlic, ginger, spinach, yogurt, almonds, turmeric, green tea, papaya, kiwi, poultry, sunflower seeds and shellfish.
- Take a probiotic supplement. If you’re unable to get your hands on foods like yogurt, kefir, sauerkraut, kimchi, and miso, you may want to introduce a probiotic supplement. Research from PubMed Central suggests that “a flourishing network of gut bacteria can help your immune cells differentiate between normal, healthy cells and harmful invader organisms.”
- Limit added sugars, including high fructose corn syrup. Visit Healthline.com for a good explanation of added vs. natural sugars and how much is recommended per day.
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- include multiple layers of fabric
- allow for breathing without restriction
- be able to be laundered and machine dried without damage or change to shape
Market Report (Week Ending 3/28/2020)
Due to an increase in questions and concern regarding the economy and real estate market as a result of COVID-19, INTERO RENO will be reporting market statistics on a weekly basis. We hope this will provide you with the knowledge to make informed decisions during this unprecedented situation. The following are highlights from real estate activity in the Greater Reno-Sparks region, including the North Valleys. These graphs represent activity for single-family residences and excludes condos/townhouses and new construction.
The Median Sales Price held steady at roughly $399,000 from the week ending 03/21/2020 to the week ending 03/28/2020. This statistic is reflective of properties that went into contract roughly 30 days ago (the common length of escrow for properties obtaining financing).
# of Closed Sales dipped about 4% between the week ending 03/21/2020 and the week ending 03/28/2020. Again, this statistic is reflective of properties that went into contract roughly 30 days ago.
Of the properties that went into contract approximately 30 days ago, these 123 Sellers received 99.3% of List Price, 0.3% greater than the prior week’s activity.
# of Days from Listing to Contract dropped from 36 days to 29 days, suggesting that approximately one month ago, demand for properties appeared to be increasing as indicated by more rapidly received and accepted offers.
In the week ending 03/28/2020, the Active Inventory dropped 2.7% from 899 to 875 available properties for sale. This inventory includes properties of all price ranges.
# of New Contracts/Pending Sales declined about 8% the week ending 03/28/2020 compared to the week ending 03/21/2020. Is this the beginning of a new trend in the market over the coming weeks? We’ll keep an eye on it.
# of New Single-Family Listings has dropped 17.8% from the week ending 03/21/2020 to the week ending 03/28/2020. During this time of year when new listings are typically ramping up, the decline last week could likely be a reflection of COVID-19’s reduction in business activities. Will we see further drops in new listings in the coming weeks? Will the median sale price be affected by a further drop in inventory? Buyer demand will be the key factor.
Summary:
- Real Estate in Nevada is still deemed an “essential business.” Properties are being showed by private appointment only, with strict adherence to the social distancing guidelines set forth by the federal government.
- We may start seeing an impact on the length of time from “Contract to Closing” as availability of inspectors, appraisers, mobile notaries, insurance brokers, lenders, etc may change as a result of COVID-19.
- While mortgage interest rates have been fluctuating over the last few weeks, it is important to consult with a reputable loan officer for more information about locking your rate when purchasing. Contact me for local lender recommendations.
- Will we continue to see a large movement of residents from other states to Nevada as we progress through the effects of the virus? We will be keeping a close eye on, and reporting what is happening in our local real estate market weekly for the next several weeks.
- For more information about specific property values and to search real estate for when you are ready to purchase/sell, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.
March 2020 Market Report
** Data in this report reflect market activity from February 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:
- February 2020 Median Sales Price for single-family re-sale properties in Reno-Sparks combined dipped from $405k in January to $390k (-3.7%). The Median Sales Price is up 4.8% from this same time last year.
- As seen in the chart above, # of Closed Sales at 443 increased from January by 14.4% and increased nearly 23% from last year.
- Reno-Sparks Absorption Rate is only 1.3 MSI (Months Supply of Inventory). What exactly does this mean? It means that if the rate of sales continued as it did during February 2020, and if no listings were added to the market, the entire Reno-Sparks inventory would be sold out in a matter of 1.3 months. 5-6 MSI is considered a “balanced market.” We are still very much in a Seller’s market. See chart above.
- Likewise, the Active Inventory at 598 is down 19% from January to February 2020 and down 41.2% from this same time last year. See chart above.
- # New Contracts was on the rise in February 2020 (+12.3% from January 2020, and +31.1% from last year). Will this result in a spike in March sales? Will the trend continue with March statistics with the historic low interests rates we just experienced? We shall see!
- Also following the seasonal trend, February 2020 brought 11.2% more New Listings than January 2020. 505 homes were brought to the market throughout the month! The majority of new listings in February were in the $300k-$399k range (163). See chart above.
- Want to talk more about what’s happening in the Reno-Sparks market? If you need me, I’m here to assist with your purchasing and selling needs. Email me (dhallerbach@intero.com) or call me directly at 775-233-0682.
February 2020 Market Report
** Data in this report reflect market activity from January 2020 compared to December 2019 and January 2020 compared to January 2019. 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.
- January 2020 Median Sales Price for single-family re-sale properties in Reno-Sparks combined increased from $393,000 in December 2019 to $405,000 (+2.8%). The Median Sales Price is up 12.2% from this same time last year.
- Below is the breakdown of stats for both Reno and Sparks separately as well.
- “Months Supply of Inventory” (MSI) 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. The MSI in January 2020 was 2 MSI in Reno and only 1.4 MSI in Sparks, most definitely a Seller’s market. The MSI for Reno-Sparks combined is nearly 50% lower than this same time last year!
- 377 Listings of single-family, stick-built homes sold in Reno-Sparks combined during January 2020. Only 10 of these homes sold over the $1M pricepoint, As usual, the bulk of properties sold in January were between $300k and $399k.
- January 2020 brought 67% more New Listings than December 2019. 444 homes were brought to the market! Don’t get your heart set on a single family home priced under $200k. Only ONE was listed in January.
SO WHERE IS NORTHERN NEVADA HEADED?
According to the Economic Development of Western Nevada, the Economic Planning Indicators Committee (EPIC) reports that “The forecast for the next 5 years is for continued job growth of 51,585 with population growth of 54,470 for a five county region. Housing for all of these new Nevadans will be needed more than ever and our real estate market is showing NO signs of slowing down. Take a look at the EPIC report by clicking HERE.
- Want to talk more about what’s happening in the Reno-Sparks market? If you need me, I’m here to assist with your purchasing and selling needs. Email me (dhallerbach@intero.com) or call me directly at 775-233-0682.
January 2020 Market Report
** Data in this report reflect market activity from December 2019 compared to November 2019 and December 2019 compared to December 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, manufactured/modular and new construction.
- December 2019 Median Sales Price for single-family re-sale properties in Reno-Sparks combined dipped slightly from $400,000 in November 2019 to $393,000 (-1.7%). As seen in last month’s market report, the Median Original List Price had dropped 2.2% from October to November. This sign of higher motivation by Sellers is likely a factor in the slight dip of the Median Sales Price. The Median Sales Price is up 7.7% from this same time last year.
- “Months Supply of Inventory” (MSI) 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. The MSI in December 2019 was 1.6, a Seller’s market indeed. The MSI is 31% lower than last year this same time.
- While the majority of the market is in a “Seller’s Market,” due to low inventory, the Luxury Market’s Absorption Rate is a little higher at 7 MSI. This means that at the current rate of sales, if no homes over $1,000,000 are added to the inventory, all active luxury listings would be sold in 7 months.
- December 2019 saw only 246 new listings. Though this statistic is following the typical seasonal trend (see graph below), the 15% fewer homes were added to the market this year compared to last year.
- Look how far we’ve come! Check out the graph below… Remember the days of short sales and foreclosures flooding the market? Those days are long gone. About 10 years ago, non-distressed sales made up only about 1/3 of the market. With massive appreciation over the last 7-10 years, homeowners are enjoying some equity again, and 96.1% of the market is now non-distressed.
- Where are we now? With inventory low, and median sales price expected to continue to rise, affordability is a concern. Currently, Reno is ranked 18 of the 100 least affordable cities to live in. The Reno Gazette Journal reports that “residents of the Biggest Little City need to spend about 45% of their income on average in order to own a house, according to the RealtyHop housing affordability index for January. This places Reno in the bottom fifth for housing affordability among all cities included in the list. It also moves Reno a spot in the rankings.” For more information about this recent report, visit RGJ.com.
- Want to talk more about what’s happening in the Reno-Sparks market? If you need me, I’m here to assist with your purchasing and selling needs. Email me (dhallerbach@intero.com) or call me directly at 775-233-0682.
December 2019 Market Report
** Data in this report reflect market activity from November 2019 compared to October 2019 and November 2019 compared to November 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, manufactured/modular and new construction.
November 2019 Summary
- November 2019 Median Sales Price for single-family re-sale properties in Reno-Sparks was UNCHANGED from October 2019 to November 2019 at $400,000. The Median Sales Price is up 6% from this same time last year, and is in line with the national average.
- The Median List Price in November 2019 was 2.2% lower than in October. This could possibly mean that Seller’s placing their homes on the market this winter are showing signs of higher motivation.
- “Months Supply of Inventory” (MSI) 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. The MSI in November 2019 was 2.3.
- What percentage of list price are most Sellers receiving? Overall, Sellers are receiving about 98.7% of their asking price. Below is a breakdown of the percentage of listing price received by price-range. The graph indicates that homes priced over $1M are receiving an average of about 94% of list price, compared to the rest of the market receiving closer to 99% of list price.
- 435 single-family stick-built homes sold in November 2019, down 22.5% from October, and down roughly 7% from November 2018. A significant portion of sales occurred in the $300k-399k range, which is typical for Reno-Sparks.
- It is taking an average of 61 days to received an accepted offer once listing on MLS. This timeframe has increased just 1.6% from October to November 2019, but is about 11% greater than one year ago.
Wrapping it up…
- Median Sales Price for Reno-Sparks combined is stable at $400k.
- Inventory is still low, and volume is down, typical for this time of year.
- It’s taking longer to receive an accepted offer than one year ago… an average of 6 days longer to be exact.
- If you’re buying in the $1 Million+ price range, your chances of negotiating below asking price are greater than at a lower price point. I can help you with that! ; )
- Don’t let winter scare you away from buying or selling a home. Overall, the parties to the transaction tend to be more motivated than during other seasons.
- If you are in need of assistance buying or selling your home, please feel free to contact me for a free marketing or purchasing consultation… I’m happy to help! dhallerbach@intero.com or call 775-233-0682.
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.
