May 2021 Market Report

** Data in this report reflect market activity from APRIL 2021 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.

April 2021’s Median Sales Price in Reno-Sparks inched closer again to $1/2M, and is $495,000. This represents a 2% increase month-over-month, and a 19% increase year-over year. The median sales price sits at the very middle of a data set, with exactly half of the houses priced for less and half priced for more.

For the 4th straight month, the Reno-Sparks market has seen an increase in sales of single family homes. 570 units sold in April 2021, a 21.5% increase month-over-month and a 45% increase compared to April 2020.

Refer to the chart above for the distribution of single family homes sold in April 2021. The bulk of properties sold fell in the $400k-$500k price range. Historically, the majority of single family homes have settled in the $300k-$400k range. However April 2021 was the 3rd straight month that the $400k-$500k range outpaced the $300k to $400k range. In other words, about a year ago, the same house that would have sold in the lower price range has appreciated into the next higher price range.

Every month since April 2020, the Average Sold Price per Square Foot has steadily increased and is now an average of $290/Sqft. This running average represents properties sold over ALL price ranges.

Please refer to the chart above for a breakdown of the Average Sold Price per Square Foot by Price Range in April 2021. Note that of the 23 homes over $1.5M, the Average Sold Price per Square Foot was $482. April’s average is 13% higher that the year’s average so far.

Yet again, the Months Supply of Inventory (MSI) in April 2021 sits at 0.5 MSI. April 2021’s MSI is a staggering 80% lower than in April 2020. This means that what little active inventory we have would “sell out” in only 2 weeks if sales continue at the current rate. A balanced market is more like 5-6 months supply.

Observe the chart above, the Months Supply of Inventory (MSI) stayed the same or decreased in nearly all price ranges. The luxury market had a slight increase in the MSI, but is still WELL BELOW the balanced market inventory of 5-6 months. It’s a Sellers Market across the board.

The average Number of Days, Listing to Contract, over all price points in April 2021 was 18! Check out the graph below for the breakdown at each price-point.

Check out the breakdown by price-point over the last few months for the Average Number of Days from Listing to Contract. Single family homes priced under $600k have been moving into contract wicked fast consistently in February, March and April.

The number of New Contracts to hit the market in April 2021 was 576. This represents just a 3.7% decrease compared to March 2021 and a 50% increase compared to April last year.

Spring activity is in full swing! The New Listing count ticked up for the 4th straight month with 636 single family homes brought to market. A steady increase in new listings is very typical for this time of year.

SUMMARY:

We continue to watch homes in Reno-Sparks hit the market and fly into contract at a rapid pace! With an average of 18 days on from listing to contract over all price points and 2 weeks supply of inventory, many buyers are feeling the pressure of the market these days.
Both the The Median Sales Price and the Average Sold Price per Square Foot continue to climb… $495,000 and $290/sqft.
Mortgage interest rates are still relatively low, at least for now. Freddie Mac Chief Economist Sam Khater acknowledged while low mortgage rates have been “a boon to the housing market,” they may not last much longer, as “consumer inflation has accelerated at its fastest pace in more than 12 years and may lead to higher mortgage rates in the summer.” If this happens, what will the impact be on the market climate locally and nationally? Only time will tell.
What is YOUR real estate need? If you need to buy or sell, I’m here to guide you through every step of the way. Sell your current home while purchasing your next home? My clients have experienced great success at doing just this with the plans we have implemented!! Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682 so we can discuss the best plan for YOU! Thank you, ~Denise Hallerbach, Broker-Owner, INTERO RENO.