June 2021 Market Report

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

May 2021’s Median Sales Price in Reno-Sparks has breached the $1/2 Million mark, now at $502,000. This represents another slight increase of 1.5% month-over-month, and a 25.5% increase year-over year and is a major milestone in market history. 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.

535 single family homes sold in May 2021. This represents about an 8% decrease compared to April 2021 and a 32.4% increase compared to May last year.

The chart above illustrates a shift in volume of single family homes sold in Reno-Sparks. As seen over the last few months, this shift has taken place with the number of units sold from the $300k-$400k range, and into the $400k-$500k range. We are seeing that the homes our buyers were searching for last year in the $300k-$400k range, are now priced and selling in the $400k-$500k range. This is causing these buyers to lower their standards in the homes they are able to purchase OR become creative in their structuring of their loan (for example, lowering their down payment and exercising private mortgage insurance).

Once again, the Average Sold Price per Square Feet continues to tick up! Over all price-points, the single family homes in Reno-Sparks are selling for an average of $295/sqft.

Please refer to the chart above for a breakdown of the Average Sold Price per Square Foot by Price Range in March and May 2021. Sold Price per Square Foot has increased in 7 of 8 price-ranges over the last few months.

The Months Supply of Inventory (MSI) in May 2021 sits at 0.6 MSI. May 2021’s MSI is a 75.6% lower than in May 2020. This means that what little active inventory we have would “sell out” in only 3 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) by Price. With all price levels well-below the balanced market of 5-6 months, Buyers are continue to find themselves in multiple offer situations, resulting in overbidding to secure their home.

Just what effect has our low inventory had on the playing field of real estate? Over all price-points, the average Percentage of List Price Received in May 2021 was 103.6%!! Remember, this is an average!! I personally sold a home in Sparks last month that sold 109.4% over appraised value!

The graph above shows the recent spike in % of List Price Received. Indeed, it has been an extremely competitive market here in Reno-Sparks over the last several months.

The average Number of Days, Listing to Contract, over all price points in May 2021 was only 14! Check out the graph below for the breakdown at each price-point.

Here is the breakdown by price-point over the last few months for the Average Number of Days from Listing to Contract. The quick-moving market does not appear to discriminate against home value or pricing.

606 single family homes when into contract in May 2021, up 7.6% month-over-month and up 12% year-over-year.

May 2021 saw 9% fewer New Listings come to market than the previous month, and 5% fewer New Listings compared to May 2020.

SUMMARY:

In general, the real estate market in Reno-Sparks, Nevada continues to move at rapid pace.
Sellers enjoy a market with multiple offers that are over asking price, and often waive or commit to some value over appraisal if an appraisal is required by the Buyer’s lender.
Both the Reno-Sparks Median Sales Price and the Average Sold Price per Square Foot continue to steadily climb… $502,000 and $295/sqft up 1.5% and 1.7% respectively month-over-month.
For the fifth consecutive week, mortgage interest rates have lingered below 3% for qualified borrowers, according to FoxBusiness.com. This appears to continue to incentivize Buyers in this highly competitive market. However, experts predict that interest rates will edge closer to 4% later this year… Finance.yahoo.com.
What are YOUR real estate needs? If you need to buy and/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.