January 2021 Market Report

** Data in this report reflect market activity from DECEMBER 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 combined, held steady at $450,000. The Median Sales Price is 14% higher compared to the same time last year when it was $394,000.

WOW! LOOK HOW FAR WE’VE COME? Over the last 5 years, the Median Sales Price for single family residences in just RENO alone has increased 70%, from $295,000 to $1/2 Million!

The Average Sold Price per Square Foot has jumped 16.5% during December 2020 compared to December 2019, and has crawled up 3% 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 December 2020 under $1M averaged around $246/square foot, while the upper price ranges cashed-in at $340/square foot for the 24 homes that sold in the $1M to $1.5 M range, and $443/square foot for the 13 homes that sold over $1.5M.

The # of Units Sold has steadily declined over the last 4 months, a common market trend that usually begins mid-fall and runs through mid-winter. We saw a slight increase in the number of single-family homes sold in Reno-Sparks (4% more) in December 2020 compared to December 2019.

See above for the price distribution of single family homes that sold in Reno-Sparks during December 2020.

Just when we thought the housing inventory could not get any more minimal, the Months Supply of Inventory dropped 32% month-over-month and is a staggering 74% lower than last year. MSI absorption rate represents the time it would take to completely “sell out” of the Reno-Sparks inventory at the current rate of sale if no new listings were added to the market. We currently have about a 2-week supply of inventory. 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 3.1 months supply, also quick-moving in today’s fast-moving real estate market.

Properties across all price points are accepting offers and going into contract an average of 31 days from listing to acceptance. Single Family Residences are receiving acceptable offers 60% more quickly than December 2019

The number of days from Listing to Contract varied greatly amongst all price ranges in December 2020. Homes priced from $1M to $1.5M appeared to be a particularly attractive market to buyers this month, only spending an average of 38 days on market before accepting an offer.

The # of New Contracts month-over-month decreased just 8% from 431 to 397. However, the number of New Contracts posted in December 2020 was 14% greater than last year… encouraging news!

The # of New Listings available during December 2020 declined 20% since November 2020. however, 13% more New Listings hit the market this December compared to December 2019.

SUMMARY:

Over the last several months, the Reno-Sparks real estate market has realized an extremely high absorption rate, meaning the turnover of listings to sales is rapid. In addition, the supply of homes for sale has shrunk drastically. We only have about 2 weeks supply of inventory.
During a season when we can typically see a dip in prices, the Median Sales Prices for single family residences has held steady at $450,000 for 2 months straight. New construction, condominiums, and condos/townhouses are not included in this statistic.
The Average Sold Price per Square Foot is 16.5% higher than November 2019 at $260/sqft.
Single-family residences continue to move very quickly at an average of 31 days from listing to contract over all price ranges, 60% faster than this same month 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. In a market that demands a level head to navigate you through a successful purchase or sale, I’m your girl… so happy to help! Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682.