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 , , , ,