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.

** 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.

** 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.

** 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.

** 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.

** 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.

** 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.  

** 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.

** 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.