Weekly Watch (Week Ending May 23, 2020)

Phase 2 of the re-opening of Nevada officially begins this weekend.  While many keep a close eye on what is happening with COVID-19 and the economy, we at Intero Real Estate Services are committed to keeping you informed with what is happening in the Greater Reno-Sparks real estate market. “The Weekly Watch” provides you with the most current information on a weekly basis to help you make informed decisions regarding your investments.  The graphs below represent activity for single-family residences (excluding condos, townhouses and new construction) from the week ending May 23, 2020 compared to the previous week and year.  The numbers are subject to change slightly, due to late reporting by real estate agents to Northern Nevada Multiple Listing Service.

 

The Median Sales Price the week ending May 23 was nearly $400,000, exactly where the Median Sales price was sitting this same week last year.  This aspect of the market does not appear to be affected by COVID-19 at this time.

 

The # of Closed Sales dipped (-8.4%) from the week ending May 16 to the week ending May 23.  Looking at the same period of time last year, sales volume is about 1/2 of what posted the week ending May 25, 2019.  Over the last 7 weeks, sales volume has been fairly consistent as seen in the circled section in the chart above.
As seen in the chart above, the bulk of sales last week were in the $300k-$500K range.  The high-end market also saw some action as well.  These figures represent properties that went into contract about 1 month ago.

 

Though sales volume continues to be lower than in recent years, the Percentage of List Price received remains high.  The week ending May 23, Sellers received an average of 98.9% of their asking price.  This continues to likely be a strong factor for the Median Sales price staying steady over the last few months.

 

During the week ending May 23, single family homes that sold this week took an average of 44 days from listing the property to negotiating a contract.  This stat is representative of properties that went into contract about 30 days ago, a customary timeframe for escrow.

 

The # of Active single family homes available for sale dropped slightly (-5.4%) week-over-week.  Over the last 2 months, since the WHO (World Health Organization) Pandemic Declaration, our active inventory has held fairly constant, as indicated in the circled timeframe.

 

This is the stat we like to see!!  The most promising news of the market, AGAIN, is the now 7-week upward trend of the # of New Contracts/Pending Sales.  This marks a 17.7% increase week-over-week and a 25% increase compared to this week last year.

 

The # of New Listings brought to market dipped slightly, with 6.6% fewer homes being listed the week ending May 23 compared to the week ending May 16.  There were nearly 45% fewer homes listed this week than during the same week in 2019.

Summing It Up…

  • Buyer demand continues to keep pace with the level of active inventory, resulting in continued steadying of the Median Sales Price that has hovered around the $400k mark for months.
  • Sales Volume, Active Inventory and # of New Listings are still down significantly from the same week last year.  However, with Buyers staying on track with purchases, our activity appears stable.
  • Mortgage applications rose for the 6th straight week, as they were fueled by historically low mortgage rates and pent-up demand.  The Mortgage Bankers Association reports that mortgage applications are up 9% year over year.  Refinancing applications have doubled since the same week last year as well.  If you are in need of a qualified loan officer, contact me now and I will refer you to the best in our industry.
  • For more information about the ins and outs of buying &/or selling real estate in today’s market, please do not hesitate to call me at 775-233-0682 or email dhallerbach@intero.com.
Posted on May 28, 2020 at 4:28 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , , ,

Why Home Equity Is a Bright Spark in the Housing Market

Given how we have seen more unemployment claims than ever before over the past several weeks, fear is spreading widely.  Some good news, however, shows that more than 4 million initial unemployment filers have likely already found a new job, especially as industries such as health care, food and grocery stores, retail, delivery, and more increase their employment opportunities. Breaking down what unemployment means for homeownership, and understanding the significant equity Americans hold today, are important parts of seeing the picture clearly when sorting through this uncertainty.

One of the biggest questions right now is whether this historic unemployment rate will initiate a new surge of foreclosures in the market. It’s a very real fear. Despite the staggering number of claims, there are actually many reasons why we shouldn’t see a significant number of foreclosures like we did during the housing crash twelve years ago. The amount of equity homeowners have today is a leading differentiator in the current market. Today, according to John Burns Consulting58.7% of homes in the U.S. have at least 60% equity. That number is drastically different than it was in 2008 when the housing bubble burst. The last recession was painful, and when prices dipped, many found themselves owing more on their mortgage than what their homes were worth.  Homeowners simply walked away at that point. Now, 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear. Those homes are not at risk for foreclosure (see graph here):

 

In addition, CoreLogic notes the average equity mortgaged homes have today is $177,000. That’s a significant amount that homeowners won’t be stepping away from, even in today’s economy (see chart below): 

In essence, the amounts of equity homeowners have today positions them to be in a much better place than they were in 2008.

Bottom Line 

The fear and uncertainty we feel right now are very real, and this is not going to be easy. We can, however, see strength in our current market through homeowner equity that has not been there in the past. That may be a bright spark to help us make it through.

 

Posted on May 7, 2020 at 6:16 am
Denise Hallerbach | Category: In-The-Know Real Estate Blog | Tagged , ,

Weekly Watch (Week Ending May 2, 2020)

While COVID-19 continues to run its course, and businesses begin to safely re-open, many are left to wonder, “What is happening with the real estate market?”  “The Weekly Watch,” keeps a close eye on what is happening with sales and values in the Greater Reno-Sparks Region on a weekly basis.  We are here to provide you with the most up-to-date information to help you make informed decisions regarding your investments.   The graphs below represent activity for single-family residences (excluding condos, townhouses and new construction) from the week ending May 2, 2020 compared to the previous week and year.  The numbers are subject to change slightly, due to late reporting by real estate agents to Northern Nevada Multiple Listing Service.

 

Week-over-week, we saw a slight dip in the Median Sales Price from $414,000 to $402,500. The Median Sales price has been bouncing around the $400k mark since the much of the economy has been shut down due to COVID-19.  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 popped back up to 96, a 15.7% increase in unit sales volume week-over-week.  Our unit sales volume is about 1/2 of what is was during the same week last year.  Again, this statistic is reflective of properties that went into contract about 30 days ago.

 

The Percentage of List Price that Sellers are receiving has held steady over the last few weeks.  Sellers  received an average of 98.7% of List Price through the week ending May 2.

 

The average # of Days from Listing to Contract dropped again the week ending May 2, a showing of 20% decrease over the last 2 weeks.  Compared to this same week in 2019, the # of Days to Contract has increased 8%.

 

In the week ending May 2, the Active Inventory decreased 7.3% compared to the previous week.  The Active Inventory is about 30% lower than the same week in 2019.  This week’s Active Inventory count may be lower at this time due to an increase of properties going under contract, as seen later in this report.

 

After a significant spike in the # of Withdrawn, Temporarily Withdrawn, or Expired Listings from the previous week,  this pull-back activity has drastically dropped back down, approximately 70%.   This statistic falls in line with the same time period in 2019, when 25 listings were also Withdrawn or Expired.

 

Positive News!  The # of New Contracts/Pending Sales increased again from 121 to 149, a 23% increase week-over-week.  This is the fourth straight week that the market has shown an increase in New Contracts.
Looking more closely at the # of New Contracts/Pending Sales in the chart above, 5 of the 11 price ranges have shown an increase of New Contracts from the week ending April 25 to the week ending May 2.

 

After a doubling of the # of New Listings from the week ending April 18 to the week ending April 25, the # of New Listings dropped by 48% during the week ending May 2.  The # of New Listings compared to the same week in 2019 is down nearly 60%.

Summing It Up…

  • California Real Estate is nearly fully operational!  Property showings in California are now permitted for all properties (vacant AND occupied) and limited to entry by the agent and two buyers.  Property staging in many counties is allowed again.  Traditional open houses are still off-limits.
  • With increased activity in California, we are hopeful for a flow-over of increased new activity in Nevada.
  • Over the last few weeks, many Northern Nevada real estate professions (Realtors®, escrow/title officers and lenders) are reporting a great increase in activity in the last couple of weeks.  Just a few days ago, I learned that one escrow officer opened 8 new escrows in one day.  Excellent!
  • Reno-Sparks is seeing an increase of New Contracts over the last 4 weeks!  Again, we are hopeful this trend will continue in the coming weeks.
  • While unemployment is a major concern for many, we appear to find Buyers who are qualified and taking great advantage of low interest rates at this time.  If you are looking to purchase now and need to connect with a great lender, contact me.  I’ll hook you up!
  • 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.

 

Posted on May 7, 2020 at 4:34 am
Denise Hallerbach | Category: Reno-Sparks Market Report | Tagged , , ,

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 , ,