Weekly Watch (Week Ending April 25, 2020)

Welcome to “The Weekly Watch,” a closer look at the real estate market in the Greater Reno-Sparks Region.  While we await the reintroduction of business activity in the coming weeks, I am providing the most up-to-date information to help you make informed decisions regarding your investments.   The graphs below represent activity for single-family residences from the week ending April 25, 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 data excludes condos/townhouses and new construction.

The Median Sales Price continues to push upward 4.7% from $401,000 to roughly $420k week-over-week. The Median Sales price is also up 20% from this same week last year. 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 dropped again during the week ending April 25, 2020.  20% fewer single family homes sold compared to the previous week ending April 18.  Our unit sales volume is down 45% compared to the same week in 2019.  Again, this statistic is reflective of properties that went into contract about 30 days ago.

The average # of Days from Listing to Contract ticked down slightly (-4.1%) from week ending April 18 to April 25.  Days to Contract are 26.7% greater than last year, suggesting it is taking an average of 10 days longer to receive an acceptable offer.

In the week ending April 25, the Active Inventory was fairly steady, with only a 1.5% decrease compared to the previous week.  The active inventory is about 25% lower than the same week in 2019. This inventory includes properties of all price ranges.

During the week ending April 25, the number of single family residences that were either withdrawn from the market, expired, or were temporarily withdrawn from the market spiked significantly.  We saw 187% increase in the number of properties removed from the market compared to the previous week.  This figure is roughly 230% higher than the same week in 2019.

The # of New Contracts/Pending Sales increased again from 112 to 125, an 11.6% increase week-over-week.  In last week’s report, I noted that on April 18, I had 9 properties scheduled to show my buyers, and of those 9, 5 went into contract that day or shortly after. These properties ranged in asking price from $340,000 to $390,000.

This higher level of activity prompted me to look more closely at the # of New Contracts/Pending Sales broken down by price.  Above is a graph illustrating the pending activity level by price range.  Note that the $300k-$400k and $500k-$600k price ranges revealed more new contracts than the previous week and same period in time last year.

# of New Listings during the week ending April 25 nearly DOUBLED compared to the previous week.  The New Listing count slightly lower (-3.4% ) compared to the same week last year.  Will buyer demand keep up with a relative influx of homes on the market?  What price ranges are we seeing these new listings?  Check it out…

All price ranges (with the exception of $100k-$200k) saw a significant increase week-0ver-week in the # of New Listings.  Looking at the blue and gray lines, many price ranges also showed an increase year-over-year.

Summing It Up…

• As we eagerly await Governor Sisolak’s upcoming directives to re-open businesses in Nevada, Owner-occupied homes and vacant properties are permitted to be shown by appointment.  Tenant-occupied properties are prohibited from showings. Traditional open houses are also not permissible.  
• Social Distancing practices and use of personal protective gear (masks, sterilizing wipes, shoe coverings) are in fully effect.
• GREAT NEWS!!  California Bay Area Realtors® may now show vacant AND occupied properties.  The Seller must not be present during showings and specific safety guidelines are followed. Commercial activity is also re-opened with the same rules applied.  Logically, if activity and sales increase in California, we should see a following of activity in Nevada, the landing spot for many people relocating from California.
• Week-over-week, we saw a surge in New Listings across nearly all price points and an 11.6% increase of New Contracts week-over-week.
• While sales volume has been declining over the last few weeks, we are seeing signs of hope with the increase of New Contracts, New Listings and re-opening of businesses on the horizon.
• Mortgage Interest Rates are still low.  Contact me for a highly qualified lender recommendation to get pre-approved at your qualifying rate!
• 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.