** 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.
- 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 email@example.com or reach me directly at 775-233-0682.
- 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 firstname.lastname@example.org.
- 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.
- fit snugly but comfortably against the side of the face
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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
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.
- 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 email@example.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 (firstname.lastname@example.org) 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! email@example.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.
- 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 firstname.lastname@example.org.
** 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.
- 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.
- 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 email@example.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.
- 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.
- 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 firstname.lastname@example.org or 775-233-0682.
Here are four reasons to consider buying today instead of waiting:
1. Prices will likely continue to rise.
CoreLogic’s latest U.S. Home Price Insights reports that home prices have appreciated by 3.7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.8% over the next year.
Home values will continue to appreciate. Waiting may no longer makes sense.
2. Mortgage interest rates are projected to increase.
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year fixed rate mortgage have started to level off around 4.3%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting rates will increase by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either way, you are paying mortgage.
Some renters have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Are you ready to put your housing cost to work for you?
4. It’s time to move on with your life.
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Examine the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, greater safety for your family, or you just want to have control over renovations, now could be the time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
So, you’ve been searching for that perfect house to call “home” and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house YOURS comes true!
Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:
1. Determine Your Price
“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”
Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present.
Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.
2. Submit an Offer
“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”
Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.
3. Negotiate the Offer
“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.
Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”
If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.
4. Act Fast
The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a “normal” market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.
Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.
Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of homeownership a reality!