October 2020 Market Report

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

Median Sales Price, at $440,000 for single-family re-sale properties in Reno and Sparks held steady in September 2020, posting a mere 1% dip compared to August 2020, and has shown an increase of 11% year-over-year.

The Average Sold Price per Square Foot continues its upward trend we have been experiencing over the last several months. Single-family residences sold in Reno-Sparks in September 2020 sold for an average of $249/sqft, a 5% increase month-over-month and an 10% increase year-over-year.

Though the Average Sold Price per Square Foot is $249/sqft, once again, homes that sold in September 2020 for over $750k appear to be pulling this average upward. Homes that sold between $1M and $1.5M averaged $327/sqft, and homes that sold for over $1.5M averaged $439/sqft!

The # of Units Sold in September ticked up 4% month-over-month from 644 to 680. The # of Units Sold is 12% higher than this same time last year. Please note that homes closing in September likely went into contract in August 2020, accounting for a typical 30-day escrow.

As seen in the graph above, the bulk of homes that closed escrow in September 2020 sold between $300k & $500K. These sales accounted for 60% of the total market share.

September’s Absorption Rate continued its downward trajectory and is at a new low of 0.7 Months Supply of Inventory. a staggering 71% drop year-over-year and a 25% decrease month-over-month. 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 added to the market. A balanced market is around 5-6 months of supply, therefore, this is a profoundly “seller’s market.”

As just mentioned, a “Balanced Market” sees about 5-6 months of inventory. Even the high-end luxury market is realizing only 3.5 Months Supply of Inventory, and is very much a “Seller’s Market” as well, while the $300k-$500k inventory is less than 1/2 a month of supply!

The # of Days from Listing to Contract since the COVID 19 economic shut-down in March has averaged 36 days. In September 2020 the overall average Days to Contract followed this trend. Single family residences are taking about 30% less time to receive and acceptable offer this year than in September 2019. These averages account for all price ranges.

While homes priced $300k-$400k received an accepted offer an average of only 16 days from listing, the upper price points of $$1M+ did take an average of a few months to accept an offer.

Over the last 4 months, the # of New Contracts has lingered around 720 per month. During the month of September 2020 we saw 34% more new contracts than the same month last year and 8% fewer new contracts than the previous month.

The # of New Listings to hit the market dropped 8% month-over-month, while decreasing 10% compared to September 2019.

SUMMARY:

So why are folks moving to Northern Nevada? They have recently found that they can work from anywhere… They are moving here for the jobs that are being created here… Their companies are moving them here. They are purchasing their retirement homes (both ahead of and after their retirement date)… They loathe the tax burdens of our neighboring state… They are threatened by wildfires and/or have devastatingly lost their home because of them. Pick your reason… the mass influx of new Northern Nevadans is real.
While the Median Sale Price in Reno-Sparks is holding steady, so too are low interest rates. Sub-3% interest rates for many qualified buyers may be keeping those buyers in the market.
The combination of historically low 0.7 Months Supply of Inventory and high buyer demand continue to add fuel to the very hot residential real estate market today.
The Average Sold Price per Square Foot continues is upward trend, and appears to be driven by the high-end luxury market.
Average days from listing to contract remains low at 36 days.
The # of New Contracts in September 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.