September 2020 Market Report

** Data in this report reflect market activity from AUGUST 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.

In August 2020, the Median Sales Price for single-family re-sale properties in Reno and Sparks continues it’s upward trend for the 3rd straight month. The Median Sales Price increased 2.5% month-over-month and 11.5% year-over-year to $444,900.

The Average Sold Price per Square Foot has also been steadily rising over the last several months. The average single-family residence sold in Reno-Sparks in August for $239/sqft, a 7% increase year-over-year.

Though the Average Sold Price per Square Foot is $239/sqft, homes selling over $750k appear to be the reason the average is pulling upward. Homes that sold between $750k and $1M averaged $259/sqft, homes that sold between $1M and $1.5M averaged $334/sqft, and homes that sold for over $1.5M averaged $375/sqft.

The # of Units Sold dipped 13.4%, month-over-month from 744 to 644. The # of Units Sold in August 2020 is 3.2% higher than August 2019. Please note that sales closing in August likely went into contract in July 2020, accounting for a typical 30-day escrow.

August’s Absorption Rate continued to steadily decline and is at a historic low of 0.8 Months Supply of Inventory. a significant 65% drop from August 2019 and a 14% decrease from July 2020. MSI absorption rate represents the time it would take to “sell out” of the Reno-Sparks inventory at the current rate of sale if no new listings were to come to market. A balanced market is around 5-6 months of supply, therefore, we are solidly in a “seller’s market.”

The Average # of Days from Listing to Contract in August 2020 inched down one day compared to July 2020. It took an average of 36 days from listing on MLS until acceptance of an offer. Single family residences are taking about 18.3% less time to receive and acceptable offer this year than in August 2019. These averages account for all price ranges.

With competition among buyers in multiple offer situations, the average SFR in Reno-Sparks received 99.5% of asking price in August 2020. Many homes are selling above asking price and buyers are waiving appraisal outcomes to secure the property today.

The # of New Contracts popped up in August 2020 with 794 accepted offers in the pipeline to close escrow in September. August 2020 saw 33% more new contracts than the same month last year and 15% more new contracts than the previous month.

The # of New Listings to hit the market dipped 1% month-over-month, while decreasing 12.4% compared to August 2019.

SUMMARY:

Californians continue to seek relief from a hostile tax environment, the destruction of wildfires, severe COVID-19 restrictions and ongoing congestion to find that Northern Nevada is their refuge.
Low 0.8 months supply of inventory and high buyer demand is fueling the very hot residential real estate market today.
The Median Sales Price and Average Sold Price per Square Foot are steadily rising.
Average days from listing to contract continues to drop.
Mortgage rates are still historically low, making home purchasing more affordable regardless of rising prices.
The # of New Contracts in August 2020 continue to rise.
If you are considering selling your home to upsize, downsize or relocate, I am here to assist you with experienced, professional services to make your transition as smooth as possible. Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682. I am so happy to help!
Buying a home in Northern Nevada? Whether it’s your first home, second or third, vacation home or investment property, I have the knowledge and highest level of skill to navigate you through the process. Call me at 775-233-0682.