February 2020 Market Report

** 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.
Posted on February 13, 2020 at 4:24 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged ,

3 Reasons Why Pre-Approval is the 1st Step in Your Home Buying Journey

When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.”  The advantage tips toward the seller when the home is priced at or near market value, and as low inventory heats up, so too does the competition among those searching for a place to call their own.  This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes, unless they are coming in a with a big wad of cash.  When financing your home purchase, here are three reasons why pre-approval should be your first step in the buying process:

  1. Gain A Competitive Advantage.   Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner.  In addition, having pre-approval from a LOCAL lender that the we know and trust, and that the listing agent recognizes, may give you a huge advantage over the competition.  Sellers and their Realtors tend to look more favorably on experienced lenders we know over online “quickie” loans.
  2. Accelerate the Home Buying Process.  Pre-approval can also speed up the home buying process, so you can move faster when you’re ready to make an offer.  In a competitive arena like we have today, being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.
  3. Know What You Are Qualified to Borrow.  When you have provided all of the essential information to get pre-approved by a local lender, you also have a better sense of your budget, what you can afford, and ultimately how much you’re eligible to borrow for your mortgage. Ultimately, you’re less apt to have your heart set on a home that may be out of your reach.

If you are preparing to purchase a home in the near future, we are happy to refer you with a highly skilled and knowledgeable loan officer to get you moving in the right direction.  The loan officer will pre-approve you based on the following criteria, also know as “The 4 C’s”:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or Cash Reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

While there are still many additional steps you’ll need to take in the home buying process, it’s clear why pre-approval is always the best place to begin. It’s your chance to gain the competitive edge you may need if you’re serious about owning a home.  Let’s get together today to make sure you’re on the fastest path to homeownership.  Call me at 775-233-0682 to get started.

 

Posted on February 5, 2020 at 2:00 pm
Denise Hallerbach | Category: In-The-Know Real Estate Blog | Tagged , , ,

3 Most Important Steps to Selling Your House

If you’re planning to sell your home in the near future, and want to sell it as quickly as possible at the highest price possible, we strongly recommend following these 3 Most Important Steps:

1.  Make Repairs/Maintain:  Examine every inch of your house and look for things that need to be repaired or replaced.  You may go as far as hiring a home inspector to provide a full report so you have no surprises during escrow.  Below are some of the most common repairs made when selling your house.  Here is a list of some of the most common items needing attention prior to selling:

  • Ripped/tore/bend screens. Repair/replace as needed.
  • Sticky glass slider tracks and window tracks/frames.  Lube them &/or replace parts or whole door.
  • Cracked light switches.  Replace.
  • Leaking faucets.  Repair/replace.
  • Leaking bathtub drains.  Repair/replace.
  • Dirty air filters.  Change them.
  • Broken or removed smoke detectors.  Replace.
  • Failed caulking and/or grout in shower/bath.  Remove and re-caulk.
  • Failed caulking on windows.  Check inside and out and seal as needed.
  • Broken vacuum seals on windows, they have moisture between the panes. Call glass company to take a look and replace.
  • Cracked/chipped shower pan and/or bathtub.  Repair (recommend Miracle Method in Reno)
  • Light fixtures that have failed.  Repair/replace.
  • Water in the crawl space.  Determine where it is coming from, eliminate it from entering, dry out and vent properly.  If necessary, install a gutters on the house, and improve grading or install French drain.  Under some circumstances, installing a sump pump may be necessary.
  • Failed or missing vapor barrier.  Install new vapor barrier.
  • Earth/dirt-to-wood contact… Eliminate contact.
  • Replace doorbell
  • Old door handle/lock.  May want to replace to freshen the first impression.
  • Failing paint where needed. Prep and paint, especially the front door/door frame & facia and window trim.
  • Holes and cracks in stucco.  Seal and paint with Elastomeric material.

2.  Clean It:  Make your house sparkle!  Whether you do it yourself or hire a cleaning service, this is a must!  It is best to take care of this BEFORE listing and showing your home.  Then, when you are about to close escrow, it will be easier to just do the final touches.  Don’t neglect the following:

  • Windows
  • Window Tracks and Frames
  • Window coverings
  • Walls (rub out scuffs with a Mr. Clean Magic Eraser or My Barkeeper’s Friend)
  • Doors and door frames (Mr. Clean Magic Eraser)
  • Baseboards (Mr. Clean Magic Eraser or My Barkeeper’s Friend)
  • Corners of walls and ceilings (spider webs)
  • Light Fixtures
  • Toilets, mirrors, tubs, showers, counters
  • Inside and outside of all cabinets, cupboards and drawers (use Murphy’s Oil or The Method Almond Oil from Target)
  • Inside and outside all appliances (oven, stove, microwave, dishwasher, refrigerator, trash compactor… all appliances that will be visible during showings)
  • Under sinks
  • Garage (sweep it out, eliminate belongings you don’t need, and organize)

3.  Stage and Prep for Photography and Showings:  If your home is already vacant, we can bring in a range of staging pieces, from full furniture sets to essential decorative accessories.  When occupying the home while you are selling, decluttering, organizing and moving belongings around may be recommended.  This process is one of my areas of expertise, and one of the most important steps prior to professional photography by Matt Waclo Photography.  Professional photography is included in my listing services and is critical for making the best first impression possible.

For guidance regarding these essential steps for selling your home, please feel free to contact me directly at 775-233-0682 or email me at dhallerbach@intero.com.

Posted on January 29, 2020 at 8:47 pm
Denise Hallerbach | Category: Real Estate News | Tagged , , , ,

January 2020 Market Report

** 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.
Posted on January 16, 2020 at 12:41 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged ,

November 2019 Market Report

 

** 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.
Posted on November 14, 2019 at 4:11 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , , ,

3 Reasons This is NOT the 2008 Real Estate Market

No one knows for sure when the next recession will occur. What is known, however, is that the “talked about” upcoming economic slowdown will not be caused by a housing market crash, as was the case in 2008. There are those who disagree and are comparing today’s real estate market to the market in 2005-2006, which preceded the crash. In many ways, however, the market is very different now. Here are three suppositions promoted by some, and why they don’t hold up.

SUPPOSITION #1 : A critical warning sign last time was the surging gap between the growth in home prices and household income. Today, home values have also outpaced wage gains. As in 2006, a lack of affordability will kill the market.

COUNTERPOINT #1:  The “gap” between wages and home price growth has existed since 2012. If that is a sign of a recession, why didn’t we have one sometime in the last seven years? Also, a buyer’s purchasing power is MUCH GREATER today than it was thirteen years ago. The equation to determine affordability has three elements:  home prices, wages, AND MORTGAGE INTEREST RATES. Today, the mortgage rate is about 3.5% versus 6.41% in 2006.

SUPPOSITION #2:  In 2018, as in 2005, housing-price growth began slowing, with significant price drops occurring in some major markets. Look at Manhattan where home prices are in a “near free-fall.”

COUNTERPOINT #2:  The only major market showing true depreciation is Seattle, and it looks like home values in that city are about to reverse and start appreciating again. CoreLogic is projecting home price appreciation to reaccelerate across the country over the next twelve months.

Regarding Manhattan, home prices are dropping because the city’s new “mansion tax” is sapping demand. Additionally, the new federal tax code that went into effect last year continues to impact the market, capping deductions for state and local taxes, known as SALT, at $10,000. That had the effect of making it more expensive to own homes in states like New York.

SUPPOSITION #3:  Prices will crash because that is what happened during the last recession.

COUNTERPOINT #3:  It is true that home values sank by almost 20% during the 2008 recession. However, it is also true that in the 4 previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6%.

Price is determined by supply and demand. In 2008, there was an overabundance of housing inventory (a 9-month supply). Today, the national housing inventory is less than half of that (a 4-month supply).

THE BOTTOM LINE:  We need to realize that today’s real estate market is nothing like the 2008 market. Therefore, when a recession does eventually occur, it will very likely NOT resemble the last one.

Posted on October 23, 2019 at 5:58 am
Denise Hallerbach | Category: Real Estate News | Tagged , , ,

September 2019 Market Report

** 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.  
Posted on September 18, 2019 at 8:40 pm
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , , ,

August 2019 Market Report

** 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.
Posted on August 14, 2019 at 3:09 pm
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , , ,

March 2019 Market Report

** Data in this report reflect market activity from Feb 2019 compared to Jan 2019 and Feb 2019 compared to Feb 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:

  • February 2019 Median Sales Price for single-family re-sale properties (excluding condominiums/townhouses) is up 2.8% from compared to January 2019.  The Median Sales Price appear stable from the same time last year.
  • Unit Sales in February 2019 were significantly lower than the same month last year.  The number of single family homes sold at 344 homes dropped 22.5 % compared to February 2018.
  • # of Days to Contract in Feb 2019 has dropped about 7% from the previous month, so homes are going under contract to sell more quickly than we’ve been experiencing lately.  However, it is taking nearly twice as long as it did in Feb 2018, on the average.
  • Active Inventory has improved since Feb 2018, increasing 35.5% to 932 active listings in Feb 2019.  However, even though Months Supply of Inventory has increased 75% from last year to 2.7 MSI this year, we are still technically in 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 state.  A “balanced inventory market” is about 6 MSI.
  • # of New Listings from last year to this year are down 27%, and down 8.7% from the previous month.

CONCLUSIONS:

  • Longer days to contract… why?  Have you been outside lately?  This has been one of the most consistently wet and snowy winters in recent history.  Weather has slow or eliminated travel for buyers, many of whom are traveling from California.
  • Increase in median sales price… why?  We are personally starting to see that when houses are priced close to market value, multiple offers are happening again.  This may have played a role in the medial sales price increasing from Jan to Feb 2019.
  • Drop in unit sales from last year to this year… why?  Perhaps weather played a part in this as well.
  • Mortgage interest rates have recovered since being raised 4 times last year. They are back down to a 12 month low.  This should help with affordability to a degree.
  • Consumer confidence is up, despite domestic and global political distractions.  Buyers appear to be getting off the fence and moving toward real estate investment in Northern Nevada.
  • What else is affecting the resale market?  Reno-Sparks Association of Realtors does not currently include new construction in the market statistics (having pulled data from Northern Nevada Regional MLS).  Currently, there are several large scale developments in the Great Reno-Sparks Region.  Our theory is that these projects absorbing many of the buyers who are purchasing in Reno-Sparks who would have otherwise purchase an existing home.  The new construction activity could very likely be playing a part in the decline of the rate and volume of sales of re-sale properties in our region.
  • All this being said…  A slowing of the real estate market during the last year may very well me a blessing, as affordability for the future of Reno-Sparks is a concern.
  • For market stats in your specific neighborhood, contact me now!
Posted on March 14, 2019 at 6:40 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , , , ,