In the wake of COVID-19, many who live in more populated city limits today are beginning to rethink their current location. Being in close proximity to everything from the grocery store to local entertainment is definitely a perk, especially if you can also walk to some of these hot spots and have a short commute to work. The trade-off, however, is that highly populated cities can lack access to open space, a yard, and other desirable features. When it comes to social distancing, as we’ve experienced recently, the newest trend seems to be around re-evaluating a once-desired city lifestyle and trading it for suburban or rural living. George Ratiu, Senior Economist at Realtor.com notes:
“With the re-opening of the economy scheduled to be cautious, the impact on consumer preferences will likely shift buying behavior…consumers are already looking for larger homes, bigger yards, access to the outdoors and more separation from neighbors. As we move into the recovery stage, these preferences will play an important role in the type of homes consumers will want to buy. They will also play a role in the coming discussions on zoning and urban planning. While higher density has been a hallmark of urban development over the past decade, the pandemic may lead to a re-thinking of space allocation.”
The Harris Poll recently surveyed 2,000 Americans, and 39% of the respondents who live in urban areas indicated the COVID-19 crisis has caused them to consider moving to a less populated area.
Today, moving outside the city limits is also more feasible than ever, especially as Americans have quickly become more accustomed to, and more accepting of, remote work. The number of people working from home has also spiked considerably, even before the pandemic came into play this year.
If you have a home in the suburbs or a rural area, you may see an increasing number of buyers looking for a property like yours. If you’re thinking of buying and don’t mind a commute to work in exchange for a little elbow room, you may want to consider looking at homes for sale outside the city. Let’s connect today to discuss the options available in our area.
** 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.
- 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.
- 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 firstname.lastname@example.org or 775-233-0682.