** 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.
- 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 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.
** Data in this report reflect market activity from JUNE 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 June 2020 compared to the previous month and year:
- In May 2020, the Median Sales Price for single-family re-sale properties in Reno-Sparks combined was $407,000, a 1.8% increase from both May 2020 and June 2019. The median sales price over the last year has hovered around the $400k mark and appears to remain steady at this time largely due to high buyer demand and low inventory.
- # of Units Sold leaped 32%, month-over-month from 396 to 537. The sales volume in the month of June, was down just 6% compared to June 2019. This statistic represents properties that most likely went into contract in May this year. As a side-note, 37.6% of the sold inventory closed with a sales price between $300,000 and $399,000. Only 1 single family residence sold under $199,999.
Months Supply of Inventory (MSI) is down 41% from May 2020 and plummeted 48% from the same time last year. MSI absorption rate accounts for 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. The 1.3 months supply, is very much in a “Seller’s Market” as it is well below the balanced level.
As observed in the graph above, the Months Supply of Inventory is extremely low for properties selling under $750,000. The inventory supply increases to a more balanced level for properties selling over $750,000 with a slight edge for the buyer in this price range.
The Average # of Days from Listing to Contract in June 2020 inched up a couple of days to 40 days. Single family residences are taking about 7% longer to sell this year than in June 2019, and 5.5% longer than May 2020. These averages account for all price ranges.
Above is the breakdown of the Average Days to Contract by Price Range in June 2020. Note that only 1 single family residence sold under $200k in June 2020 and it took 2 days to obtain an acceptable offer.
Sellers continue to receive an average of 98.9% of asking in June 2020. This statistic has held fairly consistently over the last few years. Please note that price reductions may have occurred prior the acceptance of an offer.
What is a distressed sale? It is a sale 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 balanced 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. The percentage of distressed sales on the market declined 7.3% month over month, and is 27.5% lower than in June 2019. Only 1.4% of homes sold in June 2020 were considered “distressed.”
Since the April 2020, the # of New Contracts has doubled (during May and June 2020). June 2020 saw 27.5% more New Contracts (779) than the same month last year.
# of New Listings to hit the market in June 2020 increased by 8% month-over-month. Our # of New Listings in June 2020 are down 17% from the same period of time last year.
- The absorption rate at 1.3 Months Supply of Inventory is the lowest it has been since April 2018. On average, at the current rate of sale, the active inventory would be completely absorbed in 1.3 if no new properties were brought to market. Inventory, in general, is extremely low and moving very quickly (particularly homes priced under $750k).
- The Median Sales Price at $407,000 is slightly higher month-over-month and year-over-year (+1.8%), continuing to hold steady through the economic recession due to COVID-19.
- Distressed sales still comprise a very small percentage of the active inventory… only 1.4% of all single family residence sales in June 2020.
- The # of New Listings for June 2020 inched closer to more typical levels for this time of year.
- The continued increase in the # of New Contracts for June at 779 indicates an increasing level of purchasing activity in our area.
- If this the right time for you to make YOUR move? Whether you are buying, selling or doing both, I would be happy to assist you in coordinating your efforts for smooth transactions and transitions. Email me at email@example.com or reach me directly at 775-233-0682.
- 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 firstname.lastname@example.org.
- 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.
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** 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 (email@example.com) or call me directly at 775-233-0682.
** 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! firstname.lastname@example.org or call 775-233-0682.
** 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.
- 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.
- 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!