** 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.
- 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 email@example.com or reach me by cell at 775-233-0682.
In the second half of this year, the housing market surged with activity. Today, real estate experts are looking ahead to the winter season and the forecast is anything but chilly. As Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), notes:
“It will be one of the best winter sales years ever.”
The typical winter slowdown in the housing market is simply not on the radar. Here’s why.
While today’s historically low mortgage rates are expected to remain low, they won’t be this low for much longer. This could be the last chance for homebuyers to secure such low rates, and they’re ready to take action. In a recent article, Bankrate explained:
“If you’re looking to buy a home…expect mortgage rates to remain low into 2021. However, the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.”
As long as we continue to see low interest rates, we’ll see hopeful buyers on the hunt for their dream homes. Yun confirmed:
“The demand for home buying remains super strong…And we’re still likely to end the year with more homes sold overall in 2020 than in 2019…With persistent low mortgage rates and some degree of a continuing jobs recovery, more contract signings are expected in the near future.”
The challenge, however, is the lack of homes available for sale. With that in mind, all eyes are on homeowners to see if they’ll sell this winter or wait until spring. Danielle Hale, Chief Economist for realtor.com, says it’s best for sellers to capitalize on this moment sooner rather than later:
“We currently see buyers sticking around in the housing market much later than we usually do this fall. If that trend continues, we will see more buyers in the market this winter, too. So, this winter is likely to be a good time to sell.”
With buyers ready to stay active this winter, sellers who want to close a deal on the best possible terms shouldn’t wait until spring to put their homes on the market.
Experts agree the winter housing market could potentially be bigger than ever. Whether you’re ready to buy or sell, let’s connect today so you can be in your dream home by the new year.
These days, it seems as though the residential Real Estate market is starving for listings. If you have been thinking of selling your home, now is the prime time to list, market and get top dollar. However, you may be holding back due to COVID-19. Through the last 8 months since stay-at-home orders initiated, Real Estate has remained an ESSENTIAL industry. A smart combination of technological innovations and use of strict precautions and safety protocol have allowed us to safely and effectively show and sell homes through this crazy COVID time. Here’s how:
- COVID-19 Entry Advisory Form: All parties entering the property are asked to review the risks associated with entering properties for sale. Visitors are also asked to not enter properties for showings if experiencing cold, flu or COVID-19 symptoms.
- Safety Guidelines: Agents and their clients continue to abide first and foremost by state and local regulations, as well as guidelines provided by the National Association of Realtors.
- Personal Protective Equipment (PPE) and Signage: We at INTERO Reno provide PPE (masks, hand sanitizer, sanitizing wipes) and signage instructing removal of shoes during all showings and the elimination of unnecessary surface toughing. Signs at the property also prohibit entrance into the home if visitors are experiencing symptoms.
- Virtual Showings: Walkthrough tours and high quality professional photography with video walkthrough allow potential buyers to get to know the property on the highest level before scheduling a showing appointment.
- Virtual Marketing Materials: Thorough property description and details of improvements are communicated to Buyers and their Agents to improve knowledge of valuable features. Properties are marketed through social media and digital flyers.
- Ready to make your move? Contact me today (775-233-0682) to learn more about listing and selling your home in today’s market! I’m here to guide you through.
** Data in this report reflect market activity from OCTOBER 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.
- Median Sales Price, at $455,000 for single-family re-sale properties in Reno and Sparks jumped up again 3.4% month-over-month, and is 13.8% higher than October 2019.
- The Average Sold Price per Square Foot held fairly steady month-over-month at $250/square foot. This average represents properties sold over ALL price ranges. For a breakdown of the Average Sold Price per Square Foot, refer to the chart below. The October 2020 Average Sold Price per Square Foot is 11.7% greater than October 2019.
- Homes that sold in October 2020 under $600,000 averaged around $235/square foot. While the upper price ranges pulled in bigger numbers at $312/square foot for the $1M to $1.5 M range, and $414/square foot for homes that sold over $1.5M.
- The # of Units Sold in September dropped 11.5% month-over-month from 680 to 616. 9.5% more properties sold in October this year compared to October 2019. The inventory that sold in October most likely went into contract in September.
- As seen in the graph above, much like the activity the previous month, the bulk of homes that closed escrow in October 2020 sold between $300k & $500K. These sales accounted for 55% of the total market share.
- The Absorption Rate in Reno/Sparks continues to plummet to only 0.6 Months Supply of Inventory. a significant 71% drop year-over-year and a 17% decrease month-over-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 added to the market. A balanced market is around 5-6 months of supply, therefore, we continue to experience a major “seller’s market.”
- The Absorption Rate across all all price-points is well-below a balanced market. Even high-end, luxury properties priced over $1.5M saw only 2.3 months supply of inventory during October 2020.
- Properties continue to spend a very short period of time on-market before going under contract. Over all price-points, the average days from listing to accepted offer in October 2020 was 34 days. Properties are moving 41% more quickly into contract than October 2019.
- In October 2020, the fastest moving properties were those priced between $300k and $500K, spending an average of only 18.5 days on market.
- The # of New Contracts over the last several months has held fairly steady. During the month of October 2020 we saw 21% more new contracts compared to October 2019. No significant change was noted in the # of New Contracts month-over-month.
- The # of New Listings to come to market during October 2020 dropped another 8.5% month-over-month, while increasing 11.5% compared to October 2019.
- While the weather in Northern Nevada has cooled, the real estate market has most certainly NOT! Inventory remains staggeringly low at 0.6 month supply of inventory and indicates continued high buyer-demand and a rapid rate of sale.
- Low inventory and high buyer demand continue to place heavy upward pressure on prices, as seen in another jump in the Median Sales price. At $455,000, the Median Sales Price is 3.4% higher month-over-month and 13.5% greater year-over-year.
- The Average Sold Price per Square Foot is 11.7% higher than October 2019.
- Average days from List-To-Contract remains low at 34 days.
- The # of New Contracts in October 2020 held steady month-over-month. The New Contract count in October was 21% higher than the same time 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. Email direct firstname.lastname@example.org 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.
If you’re thinking about moving, selling your house this fall might be the way to go. Here are four highlights in the housing market that may make your decision to sell this fall an easy one.
1. Buyers Are Actively in the Market
ShowingTime, a leading real estate showing software and market stat service provider, just reported that buyer traffic jumped 60.7% compared to this time last year. That’s a huge increase.
It’s clear that buyers are ready, willing, and able to purchase – and they’re in the market right now. In many regions of the country, multiple buyers are entering bidding wars to compete for the home they want. Take advantage of the buyer activity currently in the market so you can sell your house in the most favorable terms.
2. There Are Not Enough Homes for Sale
In the latest Existing Home Sales Report, the National Association of Realtors (NAR) announced that there were only 1.49 million units available for sale. That number was down 18.6% from one year ago. This means in the majority of the country, there aren’t enough homes for sale to satisfy the number of buyers.
Due to the health crisis, many homeowners were reluctant to list their homes earlier this year. That will change as the economy continues to recover. The choices buyers have will increase going into the new year. Don’t wait until additional sellers come to market before you decide to make a move.
3. The Process Is Going Quickly
Today’s ultra-competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and simpler, as buyers know exactly what they can afford before shopping for a home. According to the latest Origination Insights Report from Ellie Mae, the time needed to close a loan is just 49 days.
4. There May Never Be a More Important Time to Move
You’ve likely spent much of the last six months in your current home. Perhaps you now realize how small it is, and you need more space. If you’re working from home, your children are doing virtual school, or you just need more space, your current floor plan may not work for your family’s changing needs.
Homebuilders are beginning to build houses again, so you can choose the exact floor plan to match what your family needs, and you can make sure the outdoor space is what you want too.
The housing market is prime for sellers right now, so let’s connect to get the process started this fall. If the timing is right for you and your family, the market is calling your name.
Every day in the U.S., roughly 10,000 people turn 65. Prior to the health crisis that swept the nation in 2020, most people had to wait until they retired to make a move to the beach, the golf course, or the senior living community they were looking to settle into for their later years in life. This year, however, the game changed.
Many of today’s workers who are nearing the end of their professional careers, but maybe aren’t quite ready to retire, have a new choice to make: should I move before I retire? If the sand and sun are calling your name and you have the opportunity to work remotely for the foreseeable future, now may be a great time to purchase that beach bungalow you’ve always dreamed of or the single-story home in the sprawling countryside that might be a little further out of town. Whether it’s a second home or a future retirement home, spending the next few years in a place that truly makes you smile every day might be the best way to round out a long and meaningful career.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“The pandemic was unexpected, working from home was unexpected, but nonetheless many companies realized that workers can be just as productive working from home…We may begin to see a boost in people buying retirement homes before their retirement.”
According to the 20th Annual Transamerica Retirement Survey, 3 out of 4 retirees (75%) own their homes, and only 23% have mortgage debt (including any equity loans or lines of credit). Since entering retirement, almost 4 in 10 retirees (38%) have moved into a new home. They’re making a profit by selling their current homes in today’s low inventory market and using their equity to purchase their future retirement homes. It’s a win-win.
Why These Homeowners Are Making Moves Now
The health crisis this year made us all more aware of the importance of our family and friends, and many of us have not seen our extended families since the pandemic started. It’s no surprise, therefore, to see in the same report that 32% of those surveyed cited the top reason they’re making a move is that they want to be closer to family and friends (See graph here):
The survey also revealed that 73% percent of retirees currently live in single-family homes. With the overall number of homes for sale today hitting a historic low, and with the buyer demand for single-family homes skyrocketing, there’s never been a more ideal time to sell a single-family home and make a move toward retirement. Today’s market has the perfect combination of driving forces to make selling optimal, especially while buyers are looking to take advantage of low interest rates.
If you’re one of the 73% of retirees with a single-family home and want to move closer to your family, now is the time to put your house on the market. With the pace homes are selling today, you could essentially wrap up your move – start to finish – before the holidays.
Whether you’re looking to fully retire or to buy a second home with the intent to use it as your retirement home in the future, the 2020 fall housing market may very well work in your favor. Let’s connect today to discuss your options in our local market.
One of the best ways to build your family’s financial future is through homeownership. Recent data from the Federal Reserve indicates the net worth of a homeowner is actually over 40 times greater than that of a renter. Maybe it’s time to start thinking about buying a home, especially when interest rates are still historically low, increasing the purchase power of buyers today.
Every three years the Survey of Consumer Finances shows the breakdown of how owning a home helps build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap between owning and renting just keeps getting wider over time, making homeownership more and more desirable for those who are ready.
Owning a home is a great way to build family wealth.
For many families, homeownership serves as a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity you have in your home (See chart below):
The impact of home equity is part of why Gallup reports that Americans picked real estate as the best long-term investment for the seventh year in a row. According to this year’s survey, 35% of Americans chose real estate over stocks, savings accounts, gold, and bonds.
Today, there are great opportunities available for those planning to buy a home. The housing market has made a full recovery, and all-time low interest rates are giving homebuyers a big boost in purchasing power. If you’re ready, buying a home this fall can set you up to increase your net worth and create a safety net for your family’s future.
To learn how you can use your monthly housing cost to build your family’s net worth, let’s connect so you have a trusted professional to guide you through the home-buying process.
Homebuying has been on the rise over the past few months, with record-breaking sales powering through the market in June, July and August. Buyers are actively purchasing homes, and the momentum is continuing into the fall. It is, however, becoming harder for buyers to find homes to purchase. If you’ve been thinking about selling your house, the coming weeks might just be the timing you’ve been waiting for.
According to the Pending Home Sales Report from the National Association of Realtors (NAR):
“Pending home sales in July achieved another month of positive contract activity, marking three consecutive months of growth.
The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, rose 5.9% to 122.1 in July. Year-over-year, contract signings rose 15.5%. An index of 100 is equal to the level of contract activity in 2001.”
This means that for the past several months, buyers have signed an increasing number of contracts to purchase homes – well above where the market was at this time last year. Lawrence Yun, Chief Economist at NAR notes:
“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market…Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
Below is a graph that shows the impressive recovery of homes sales compared to previous years. The deep blue v marks the slowdown from this spring that turned into an exponential jump in sales that followed through the summer, skyrocketing above years past (see graph to right):
What Does This Mean for Sellers?
If you were thinking about putting your house on the market in the spring, but decided to wait due to the health crisis, it may be time to make your move. Buyers are in the market right now. With so few homes available to purchase, homeowners today are experiencing more bidding wars, creating an optimal time to sell.
Is This Trend Going to Continue?
As CNBC notes, there are no signs of slowing buyer demand this fall:
“The usual summer slowdown in the housing market is not happening this year. Buyers continue to show strong demand, spurred by the new stay-at-home world of the coronavirus and by record low mortgage rates.”
Danielle Hale, Chief Economist at realtor.com, concurred:
“In a typical year in the housing market, buyer interest begins to wane before seller interest causing the usual seasonal slowdown as we move into the fall. Due to a delayed spring season and low mortgage rates, we could see buyer interest extend longer than usual into the typically quieter fall. Whether this means more home sales will depend on whether sellers participate or decide to stay on the sidelines.”
As Hale mentioned, homeowners who are willing to sell their houses right now will play a big role in whether the trend continues. The market needs more homes to satisfy ongoing buyer demand. Maybe it’s time to leverage your equity and move up while eager home shoppers are ready to purchase a house just like yours.
If your current home doesn’t meet your family’s changing needs, let’s connect to help you sell your house and make the move you’ve been waiting for all year.
With the strength of the current housing market growing every day and more Americans returning to work, a faster-than-expected recovery in the housing sector is already well underway. Regardless, many are still asking the question: will we see a wave of foreclosures as a result of the current crisis? Thankfully, research shows the number of foreclosures is expected to be much lower than what this country experienced during the last recession. Here’s why.
According to Black Knight Inc., the number of those in active forbearance has been leveling-off over the past month (see graph):
Black Knight Inc. also notes, of the original 4,208,000 families granted forbearance, only 2,588,000 of these homeowners got an extension. Many homeowners have once again started to pay their mortgages, paid off their homes, or never went delinquent on their payments in the first place. They may have applied for forbearance out of precaution, but never fully acted on it (see graph):
The housing market, and homeowners, therefore, are in a much better position than many may think. Much of that has to do with the fact that today’s homeowners have more equity than most realize. According to John Burns Consulting, over 42% of homes are owned free and clear, meaning they are not tied to a mortgage. Of the remaining 58%, the average homeowner has $177,000 in equity. That number is keeping many homeowners afloat today and giving them options to avoid foreclosure.
While ATTOM Data Solutions indicates that there is a potential for the number of foreclosures to increase throughout the country, it’s important to understand why they won’t rock the housing market this time around:
“The United States faces a possible foreclosure surge over the coming months that could more than double the number of households threatened with eviction for not paying their mortgages.”
That number may sound massive, but it is actually much smaller than it seems at first glance. Today’s actual quarterly active foreclosure number is 74,860. That’s over 7.5x lower than the number of foreclosures the country saw at the peak of the housing crash in 2009. When looking at the graph below, it’s clear that even if the number of quarterly foreclosures today doubles, as ATTOM Data Solutions indicates is a possibility (not a given), they will only reach what historically-speaking is a normalized range, far below what up-ended the housing market roughly 10 years ago. Equity is growing, jobs are returning, and the economy is slowly recovering, so the perfect storm for a wave of foreclosures is not realistically in the housing market forecast. As Odeta Kushi, Deputy Chief Economist for First American notes:
“Alone, economic hardship and a lack of equity are each necessary, but not sufficient to trigger a foreclosure. It is only when both conditions exist that a foreclosure becomes a likely outcome.”
While our hearts are with anyone who may end up in foreclosure as a result of this crisis, we do know that today’s homeowners have more options than they did 10 years ago. For some, it may mean selling their house and downsizing with that equity, which is a far better outcome than foreclosure.
Homeowners today have many options to avoid foreclosure, and equity is surely helping to keep many afloat. Even if today’s rate of foreclosures doubles, it will still only hit a mark that is more in line with a historically normalized range, a very good sign for homeowners and the housing market.
Today, home prices are appreciating. When we hear prices are going up, it’s normal to think a home will cost more as the trend continues. The way the housing market is positioned today, however, low mortgage rates are actually making homes more affordable, even as prices rise. Here’s why.
According to the Mortgage Monitor Report from Black Knight:
“While home prices have risen for 97 consecutive months, July’s record-low mortgage rates have made purchasing the average-priced home the most affordable it’s been since 2016.”
How is that possible?
Black Knight continues to explain:
“As of mid-July, it required 19.8% of the median monthly income to make the mortgage payment on the average-priced home purchase, assuming a 20% down payment and a 30-year mortgage. That was more than 5% below the average of 25% from 1995-2003.
This means it currently requires a $1,071 monthly payment to purchase the average-priced home, which is down 6% from the same time last year, despite the average home increasing in value by more than $12,000 during that same time period.
In fact, buying power is now up 10% year-over-year, meaning the average home buyer can afford nearly $32,000 more home than they could at the same time last year, while keeping their monthly payment the same.”
This is great news for the many buyers who were unable to purchase last year, or earlier in the spring due to the slowdown from the pandemic. By waiting a little longer, they can now afford 10% more home than they could have a year ago while keeping their monthly mortgage payment unchanged.
With mortgage rates hitting all-time lows eight times this year, it’s now less expensive to borrow money, making homes significantly more affordable over the lifetime of your loan. Mark Fleming, Chief Economist at First American, shares what low mortgage rates mean for affordability:
“In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.”
The graph to the right shows the last time homes were affordable by state.
Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia – homes have not been this affordable in more than 25 years.
If you’re thinking of making a move, now is a great time to take advantage of the affordability that comes with such low mortgage rates. Whether you’re thinking of purchasing your first home or moving into a new one and securing a significantly lower mortgage rate than you may have on your current house, let’s connect today to determine your next steps in the process.