Market Report (Week Ending 4/4/2020)

The future may be brighter than you think!  As concerns have been mounting due to the screeching halt of at least 1/4 of the US economy, many Americans are left to wonder what the financial fallout of COVID-19 will ultimately be.  Economists and business owners believe the economy will bounce back after the threat to lives subsides?  Visit my “In-The-Know Real Estate Blog” for more!
A few week ago, I distributed my Homebound Edition of “The Weekend Warrior.”  If you haven’t seen it, check it out!  Since public events have ceased, I stopped writing The Weekend Warrior and last week I began reporting what is happening in the Reno-Sparks real estate market weekly.  The world we live in is changing on a daily basis. My goal in “The Weekly Watch” is to increase your knowledge about what is happening with your investments and to provide you with information to make informed decisions during this unprecedented time. The following are highlights from the most recent 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 dipped 4.5%, from $400,632 to $382,500 from the week ending 03/28/2020 to the week ending 04/04/2020.  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 decrease 21% between the week ending 03/28/2020 and the week ending 04/04/2020.  Again, this statistic is reflective of properties that went into contract about 30 days ago.
Of the properties that went into contract approximately 30 days ago, these 120 Sellers received 98.9% of List Price.  This is a slight decrease of 0.3% from the previous week’s closed sales.
# of Days from Listing to Contract increased nearly 32%, suggesting that approximately one month ago, demand for properties appeared to be decreasing.  # of Days from Listing to Contract is the length of time needed to obtain an acceptable offer.
In the week ending 04/04/2020, the Active Inventory remained relatively steady at 942 versus 948 the previous week. This inventory includes properties of all price ranges.  Note that during the last week.
During the week ending 04/04/2020, 50 single family residences were either withdrawn from the market or the listing expired.  This number sharply increased from 30 the previous week.
One of the biggest surprises of last week…  # of New Contracts/Pending Sales actually increased 4% from the week ending 04/04/2020 compared to the week ending 03/28/2020.  Note in the graph above, the # of New Contracts/Pending Sales per week has been declining since 02/22/2020.
… And the biggest surprise from last week… # of New Listings increased 10.4% from the week ending 03/28/2020 to the week ending 04/04/2020.SUMMARY

  • 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 dhallerbach@intero.com.
Along with strictly practicing social distancing if you must leave your house, and frequently washing your hands for 20 seconds with soap and hot water, here is a collective of helpful tips to Boost Your Body’s Natural Defenses:
  • 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.
It doesn’t even need to be antibacterial soap!  Just any old soap will do when it comes to washing hands.  I was recently shown this awesome video that demonstrates why washing your hands with soap and hot water for at least 20 seconds is the most effective way to eliminate the virus from your hands and reduce the spread of infection.  CLICK HERE to check out the very informative 3 min, 44 sec video.
Though the use of personal masks is not currently mandated, the CDC advises that we all wear them in public where social distancing is more difficult, like the pharmacy or grocery store.  A homemade, cloth face covering used from common materials around the house is perfectly acceptable.  I recently sacrificed some 18″x18″ cloth buffet napkins from Cost Plus World Market to sew the mask I’m modeling in the photo above.  I followed the simple directions at CNN.com and voila!  If sewing isn’t in your repertoire of skills, visit YouTube.com for easy instructions to make a face covering from a bandana, no sewing required.  According to CDC.gov your face cloth covering should:

  • fit snugly but comfortably against the side of the face
  • be secured with ties or ear loops
  • include multiple layers of fabric
  • allow for breathing without restriction
  • be able to be laundered and machine dried without damage or change to shape

 

Posted on April 7, 2020 at 4:56 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , ,

March 2020 Market Report

** 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 (dhallerbach@intero.com) or call me directly at 775-233-0682.
Posted on March 12, 2020 at 7:45 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , ,

December 2019 Market Report

** 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!  dhallerbach@intero.com or call 775-233-0682.
Posted on December 19, 2019 at 4:56 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , ,

May 2019 Market Report

** Data in this report reflect market activity from April 2019 compared to March 2019 and April 2019 compared to April 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:

  • April 2019 Median Sales Price for single-family re-sale properties (excluding condominiums/townhouses) increased 2.2% compared to March 2019.  The Median Sales Price appear stable from the same time last year, showing only a .8% increase from April 2018.
  • Unit Sales in April 2019 rose significantly from the previous month (519 compared to 443), an increase of 13.6%.  Unit sales are 5.5% greater than the same time last year.
  • # Days to Contract in April 2019 has dropped from 58 days to 45 days, a 21% decrease.  Sellers of single family residences accepting offers more quickly than we experienced during fall and winter months.  However, in April 2019, getting a property into contract still took 40% longer compared to last year, on the average.
  • # New Listings are up nearly 30% from April, an indication of typical spring action.  17.5% greater number of new listings hit the market compared to April 2018.
  • Active Inventory has improved greatly since the same time last year, increasing 33.7% to 1,012 active listings in April 2019.  However, even though Months Supply of Inventory shows an increase of 26% from last year to 1.9 MSI, 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.

CONCLUSIONS:

  • We are seeing typical spring action in the Reno-Sparks Real Estate market… More new listings hitting the market, more units sold, fewer days to contract and an uptick in the median sales price.
  • Starting to see an increase in median sales price.  With inventory still low, and increased buyer activity and demand during the typical selling season, buyers find themselves competing against other buyers again.  This could mean an overall increase in the median sales price in our region should the trend continue.
  • Why no MAJOR increase in median sales price with inventory so low?  Remember, NEW home construction inventory is not included in this report.  With new home construction on the rise in all parts of Reno-Sparks, there is more inventory out there that factors into what we are actually experiencing.  This may be a contributing factor to the suppression of median sales price in the resale market.
  • Mortgage interest rates are still relatively low compared to the higher rates experienced last year.  This should help with affordability to a degree .
  • Market statistics do vary by neighborhood. For market data and statistics in YOUR specific neighborhood, contact me now.  I am happy to help!
Posted on May 8, 2019 at 2:05 pm
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , ,