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** Data in this report reflect market activity from MAY 2020 compared to the previous month and year. 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, manufactured/modular and new construction.
Here is the market overview:
And here are a more detailed look at the stats for May 2020 compared to the previous month and year:
- In May 2020, the Median Sales Price for single-family re-sale properties in Reno-Sparks combined was $399,900, a 3.6% decrease from April 2020, and a 2.5% increase from May 2019. As seen in the graph above, the median sales price has hugged the $400k price point over the last year and appears to be steady at this time.
- # of Units Sold inched up 387 to 396 from April to May 2020. The sales volume is down 42% compared to the same month last year. This volume is representative of properties that likely went under contract for sale in April and were in escrow for about 30 days.
Months Supply of Inventory (MSI) decreased 11.8% month over month from 2.4 to 2.1 months supply. This measure of inventory is also about 5% higher than last year. MSI accounts for the time it would take to “sell out” of the Reno-Sparks inventory at the current rate of sale if no new listings came to market. A balanced market is around 5-6 months of supply. Therefore, with a low 2.1 months supply, we are still very much considered to be in a “Seller’s Market.”
The Average # of Days from Listing to Contract in May 2020 was 39 days. Single family residences are taking 20% longer to sell this year than in May 2019, and only 1.6% longer than the previous month. These averages account for all price ranges.
As seen in the graph above, homes that sold in the $200k to $700k range during May 2020 received acceptable offers significantly more quickly than the rest of the market. The $1M to $1.5M range went into contract fairly quickly (66 days) compared to the $750k to $1M range and the $1.5M+ range (108 days).
With Seller’s receiving an average of 99% of asking in May 2020, we continued to see no significant change for this statistic overall. Please note that price reductions may have occurred prior to receiving 99% of asking.
Is the economic impact of COVID-19 pandemic causing foreclosures and short sales in Reno-Sparks at this time? So far, homeowners appear to be hanging in through the highest unemployment rate most of us have ever seen. The percentage of distressed sales on the market did increase 7% month over month, but is still down 30% from May 2019. Only 1.7% of homes listed on multiple listing service were considered “distressed,” meaning a bank-owned/foreclosure or short sale.
The last several weeks of real estate activity have brought a significant increase in the # of New Contracts. Month over month, we saw a 635 New Contracts for sale, a 63.7% leap from April 2020 and a 3.9% increase from last year.
# of New Listings to hit the market the week ending in May 2020 increased slightly by 3.8% compared to April 2020. Our # of New Listings are still down nearly 40% from the same period of time last year.
SUMMARY:
- Inventory is still low, but what IS on the market is moving, as indicated by the significant increase in New Contracts, which should lead to an increase in sales volume in the coming months.
- The Median Sales Price at $399,900 appears to be fairly steady at this time. Over the last year, the $400k Median has been a benchmark the market has hovered around during the last 13 months.
- The consensus among many real estate professionals is that “summer is the new spring.” The typical influx of activity that happens in March, April and May is beginning happening now. My colleagues and I have been extremely active over the last couple of months.
- With low inventory, however, we’ll need to see if buyer demand for fewer homes listed will continue, and ultimately put more upward pressure on prices again. Will the Median Sales Price start moving up again in the near future? We shall see…
- Buyer activity in Reno-Sparks comes largely from out-of-state, particularly California. While many of our relocation clients are looking to escape the crowds, traffic and high taxes of California during COVID-19 uncertainty, they are finding more reasons now than ever to make that move. We call them “California Refugees,” and we are here to help. Email me at dhallerbach@intero.com to learn more about the many benefits of moving to Reno-Sparks.
