April 2019 Market Report

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

March 2019 Median Sales Price for single-family re-sale properties (excluding condominiums/townhouses) declined only 1.6% compared to February 2019. The Median Sales Price appear stable from the same time last year. Below is a graph showing the leveling of the market over the last several months. Green line represents single family stick built and blue line represents condos/townhouses.

Unit Sales in March 2019 were significantly lower than the same month last year. The number of single family homes sold at 344 homes dropped 19% compared to March 2018 but is increased about 23% from the previous month… typical during spring months.
# of Days to Contract in March 2019 has dropped about 15% from the previous month, so homes are going under contract to sell more quickly than we experienced during fall and winter months. However, it is taking nearly twice as long compared to last year, on the average.
Active Inventory has improved since the same time last year, increasing 26% to 891 active listings in March 2019. However, even though Months Supply of Inventory shows an increase of 56% from last year to 2 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.
# of New Listings from last year to this year are the same as volume as last year, but up 36% from the previous month.

CONCLUSIONS:

Many of our comments here are similar to last months’ conclusions. Very little has changed in the market from February to March.
Longer days to contract… why? I believe we are still seeing the effects of the challenging driving conditions many buyers faced during winter March 2019. The weather did improve slightly from previous months, but this factor appears to have played a role in our local market.
Leveling of median sales price over the last year… why? Our opinion regarding leveling of the market began last year when interest rates elevated. During the last few weeks, the rates have returned to about where they were in early 2018.
Drop in unit sales from last year to this year… why? Again, perhaps weather played a part in this again as well.
Mortgage interest rates have recovered since being raised 4 times last year. They are back down to a 12 month low. This should help with affordability to a degree.
Consumer confidence is up, despite domestic and global political distractions. Buyers appear to be getting off the fence and moving toward real estate investment in Northern Nevada.
What else is affecting the resale market? Reno-Sparks Association of Realtors does not currently include new construction in the market statistics (having pulled data from Northern Nevada Regional MLS). Currently, there are several large scale developments in the Great Reno-Sparks Region. Our theory is that these projects absorbing many of the buyers who are purchasing in Reno-Sparks who would have otherwise purchase an existing home. The new construction activity could very likely be playing a part in the decline of the rate and volume of sales of re-sale properties in our region.
All this being said… A slowing of the real estate market during the last year may very well me a blessing, as affordability for the future of Reno-Sparks is a concern.
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