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After a significant spike in the # of Withdrawn, Temporarily Withdrawn, or Expired Listings from the previous week,  this pull-back activity has drastically dropped back down, approximately 70%.   This statistic falls in line with the same time period in 2019, when 25 listings were also Withdrawn or Expired.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