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 | Category: 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 | Category: 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 | Category: 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 | Category: Reno-Sparks Market Report | Tagged , , , ,