Reno-Sparks Market Report January 12, 2019

Reno-Sparks 2018 Market Recap

** Data in this report reflect market activity of single homes (excluding condos & townhouses) in 2018 compared to 2017.  Information is gathered from the Reno-Sparks Association of Realtors® (RSAR) for the Greater Reno-Sparks region unless otherwise noted.

The Highlights.

• The median price at the end of 2018 is up 5% to $362,000 from the same time last year, and down 4% from November 2018.  A look at the graphs below show the median sales price activity from year-to-year.  Notice the same general trends, but with a more pronounced drop in the average from Oct-Dec 2018.

• Unit sales in December 2018, at 361 single family residences sold, are about the same as January 2017.  Again, note in the graphs below, the cyclical trend with unit sales peaking in summer months and declining in winter months.

• As seen in the graphs below, 2018 followed the same general trend for New Listings brought to market, but the end of 2018 data showed about 10% fewer new listings compared to 2017.

• Reno-Sparks market remains in a Seller’s Market, with an average of 3 Months Supply of Inventory (MSI).  MSI is the time it would take to exhaust the active inventory at the current rate of sales if no new listings were added to the market.  Though the inventory for buyers has improved in Q4 of 2018, the months supply is still well below a balanced market that is 6 months supply.

• Compared to 2017, 2018 realized more units sold over the $400k price point and fewer sold under $300k.  In the Luxury Market, 6.6% more homes in the $750k-$1M price range, and 53% more homes in the $1M-$10M price range sold in 2018.

• While affordability is still a concern in the Reno-Sparks real estate market, it is slightly improved from last near.  In a nutshell,  a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.  Any value above the 100 point threshold indicates that a typical family will be less likely to qualify for a mortgage on a home in a given area.

The Conclusions

• The market has slowed down.  In addition to the usual seasonal slow-down, interest rate increases, uncertainty in the stock market, and I have now even heard grumblings that the government shut down all appear to have contributed to a simmering of the real estate market.

• Yet still a seller’s market.  Months supply of inventory has been hovering around 3 Months of Supply.  A balanced market holds 6 Months of Supply.  Months Supply of Inventory is the time it would take to completely sell out of the existing inventory if the rate of sales remains the same.

Sellers still receive close to asking.  Sellers are receiving an average of 98.3% of asking price.

Yet sellers… continue to be patient.  The market is actually appears to be normalizing, which is a good thing… except when you are a Seller who is eager to sell.  It’s currently taking an average of 2 months to reach an agreed upon contract, up 10% from the same time last year.  Sellers who price their homes as close to market value as possible have a higher probability of receiving an acceptable offer more quickly.