December 2020 Market Report

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

For the second straight month, the Median Sales Price for single-family, re-sale properties in Reno and Sparks, held steady at $455,000. This represents a 13.8% increase compared to the same time last year.

The Average Sold Price per Square Foot has leaped 14.5% during November 2020 compared to November 2019, and has inched up 1.5% month-over-month. This average represents properties sold over ALL price ranges. For a breakdown of the Average Sold Price per Square Foot by Price Range, refer to the chart below.

Homes that sold in November 2020 under $1M averaged around $245/square foot, while the upper price ranges cashed-in at $327/square foot for the 25 homes that sold in the $1M to $1.5 M range, and $492/square foot for the 13 homes that sold over $1.5M.

The # of Units Sold dropped 12% month-over-month from 616 to 551. However, 21% more units sold in November 2020 compared to November 2019. The inventory that sold in November most likely went into contract sometime in October.

Sales in the $300k to $500k price range accounted for 55% of the total market share for the second straight month.

The extremely low Absorption Rate in Reno/Sparks holds steady at 0.7% Months Supply of Inventory. The Absorption Rate has declined a massive 73% year-over-year. 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 are still very much in a “Seller’s Market.”

The Absorption Rate across all all price-points is well-below a balanced market. The rate of sales in the high end luxury market over $1.5M is 3.5 months supply, also quick-moving in today’s hot real estate market.

Properties across all price points are accepting offers and going into contract an average of 34 days from listing to acceptance. Single Family Residences are receiving acceptable offers 45% more quickly than this same time last year.

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

The # of New Contracts month-over-month dropped a whopping 29% from 612 New Contracts to 434. However, the number of new contracts posted in November 2020 was only 5.5% less than last year.

As typically experienced each winter, we are beginning to see a drop in the # of New Contracts. See the chart above that indicates this cyclical trend. Also, please note that a premature drop was noted in April, likely due to the economic shut related to COVID-19. We saw a significant drop of 29% for New Contracts month-over-month, and 5.5% fewer New Contracts in November 2020 compared to November 2019.

The # of New Listings to come to market during November 2020 declined 35% since October 2020. There were also 12.5% fewer New Listings this November compared to November 2019.

SUMMARY:

While the number of New Listings and New Contracts has dropped since October which is typical for this time of year, the rate of sales continues to be on-par with the activity we have seen in 2020. Much to the surprise of many, the real estate market has fared extremely well during this crazy pandemic.
As a result of low inventory and high buyer demand, prices have held steady with the median sales price remaining at $455,000 for a single-family residences. New construction, condominiums, and condos/townhouses are not included in this statistic.
The Average Sold Price per Square Foot is 14.5% higher than November 2019.
Single-family residences continue to move very quickly at an average of 34 days from listing to contract over all price ranges.
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.