November 2020 Market Report

** Data in this report reflect market activity from OCTOBER 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 $455,000 for single-family re-sale properties in Reno and Sparks jumped up again 3.4% month-over-month, and is 13.8% higher than October 2019.

The Average Sold Price per Square Foot held fairly steady month-over-month at $250/square foot. This average represents properties sold over ALL price ranges. For a breakdown of the Average Sold Price per Square Foot, refer to the chart below. The October 2020 Average Sold Price per Square Foot is 11.7% greater than October 2019.

Homes that sold in October 2020 under $600,000 averaged around $235/square foot. While the upper price ranges pulled in bigger numbers at $312/square foot for the $1M to $1.5 M range, and $414/square foot for homes that sold over $1.5M.

The # of Units Sold in September dropped 11.5% month-over-month from 680 to 616. 9.5% more properties sold in October this year compared to October 2019. The inventory that sold in October most likely went into contract in September.

As seen in the graph above, much like the activity the previous month, the bulk of homes that closed escrow in October 2020 sold between $300k & $500K. These sales accounted for 55% of the total market share.

The Absorption Rate in Reno/Sparks continues to plummet to only 0.6 Months Supply of Inventory. a significant 71% drop year-over-year and a 17% 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, we continue to experience a major “seller’s market.”

The Absorption Rate across all all price-points is well-below a balanced market. Even high-end, luxury properties priced over $1.5M saw only 2.3 months supply of inventory during October 2020.

Properties continue to spend a very short period of time on-market before going under contract. Over all price-points, the average days from listing to accepted offer in October 2020 was 34 days. Properties are moving 41% more quickly into contract than October 2019.

In October 2020, the fastest moving properties were those priced between $300k and $500K, spending an average of only 18.5 days on market.

The # of New Contracts over the last several months has held fairly steady. During the month of October 2020 we saw 21% more new contracts compared to October 2019. No significant change was noted in the # of New Contracts month-over-month.

The # of New Listings to come to market during October 2020 dropped another 8.5% month-over-month, while increasing 11.5% compared to October 2019.

SUMMARY:

While the weather in Northern Nevada has cooled, the real estate market has most certainly NOT! Inventory remains staggeringly low at 0.6 month supply of inventory and indicates continued high buyer-demand and a rapid rate of sale.
Low inventory and high buyer demand continue to place heavy upward pressure on prices, as seen in another jump in the Median Sales price. At $455,000, the Median Sales Price is 3.4% higher month-over-month and 13.5% greater year-over-year.
The Average Sold Price per Square Foot is 11.7% higher than October 2019.
Average days from List-To-Contract remains low at 34 days.
The # of New Contracts in October 2020 held steady month-over-month. The New Contract count in October was 21% higher than the same time last year.
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.