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** Data in this report reflect market activity from August 2019 compared to July 2019 and August 2019 compared to August 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:
- August 2019 Median Sales Price for single-family re-sale properties in Reno-Sparks (excluding condominiums/townhouses) dipped slightly by 1.5% from July 2019 to August 2019 ($405,000 to $399,000). The Median Sales Price is up 7.6% from this same time last year.
- # of Units Sold at 601 single-family homes held fairly steady from July to August 2019. Unit sales are up about 5.1% from the same time last year.
- # Days to Contract continues to increase and are up significantly from the same time last year. It is now taking an average of 34% more days to receive an accepted offer on a single family home.
- The New Listings count was down about 4% from July 2019 and 10% higher than the same time last year.
- Months Supply of Inventory (MSI) for August 2019 was 2.3. “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 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.
CONCLUSIONS:
- How do we account for the 7.6% increase in the Reno-Sparks median sales price from the same time last year? Check out the distribution of unit sales by price point in the graphs below. It appears as though a slight increase in sales at the $400k-$500k price range may be the reason.
- Sales activity continued to slow at the end of summer. This is a typical seasonal trend, as illustrated in the graph below. However, we experienced a 5-year low of only 353 single family homes sold in January of this year. The number of units sold in a month peaked at 851 in June of 2017.
- Sellers are advised to be patient. It’s taking a bit longer to get a buyer into contract than in the spring and early summer. However, as seen in the graph below, this is also a typical seasonal trend as well. Competitive pricing and home preparation and maintenance are the key to selling your home most quickly.
- Policy changes should help with the condominium market. Last month, the National Association of Realtors announce that the Department of Housing and Urban Development is implementing changes in policy and regulations October 15, 2019 that will likely help boost condominium sales. Currently, only 6.5% of the condo projects in the U.S. are eligible for the FHA mortgage insurance program. But the coming new policies should result in more condos available for purchase with FHA financing and have a positive impact on buying opportunities for many first-time home buyers. For more information on the topic, click HERE for the September 2019 RSAR “To The Point” video.
- If you need an experienced real estate professional to assist with purchasing a home or preparing, staging and marketing your home to sell, please don’t hesitate to contact me directly at dhallerbach@intero.com or 775-233-0682.
