July 2021 Market Report

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

The Median Sales Price in Reno-Sparks surpassed the $1/2 Million mark in May and was pushed to $530,000 in June 2021, a 5.7 % increase month-over-month and a 30% 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.

Taking a step back, we see the eye-popping appreciating over time with the Median Sales Price soaring well over $500k now in Reno-Sparks combined.

633 single family homes sold in June 2021, a 17 % increase from May 2021 and a 12% increase from June 2020.

During June 2021, more homes sold in the $400k to $500k price range than in any other price range by a significant amount, attributing to 29% of the market share, a trend we have been seeing over the last several months.

The steady rise in the Average Sold Price per Square Foot continues and now sits at $306/square foot across all price ranges.

The Months Supply of Inventory (MSI) in June 2021 is 1/2 MSI. This means that what little active inventory we have would “sell out” in only 2 weeks if sales continue at the current rate. June 2021’s MSI is a 66% lower than the same time last year. A balanced market is approximately 5-6 months supply.

All price points are still well below the balanced market of 5-6 months supply of inventory.

Low inventory and high demand continued to keep Buyers in a competitive environment during the month of June 2021. Over all price-points, the average Percentage of List Price Received in June 2021 was 103.7%!!

June 2021 saw a set of properties, likely overpriced, that spent a longer period of time on market before receiving an acceptable offer. We also noticed a few price ranges with longer days on market than the rest of the inventory. These properties pushed the average Number of Days from Listing to Contract, from 13 in May to to 28 in June. That is a massive jump! Check out the graph below for the breakdown at each price-point.

Here is the breakdown by price-range for the Average Number of Days from Listing to Contract.

The Number of New Contracts held fairly steady in June 2021 with 607 single family homes going into contract. 16.4% fewer homes went into contract than this same time last year.

June 2021 saw 5.3% more single family homes come to market than the the previous month, and 7.2% fewer New Listings compared to June 2020.

SUMMARY:

Though inventory is still extremely low in Reno-Sparks, we have started to feel a bit of a slowing in market over the last few weeks. Seeing that the average Days on Market from listing to contract has stretched from 13 days in May to 28 days in June 2021, there may be a few contributing factors at play.
- Many Buyers report that they have retreated from the market due to prices increasing beyond their affordability.
- Buyers are vacationing after 1 1/2 years of pent up travel demand due to the pandemic. Purchasing a home does not appear to be a top priority at this time for many.
- Some overzealous Sellers appear to be pricing their homes higher than market value… a turn-off for many Buyers. Overpriced homes tend to spend more days on market and ultimately often sell after a price adjustment is made.
Median Sales Price and Sold Price per Square Foot have both increased again, to $530,000 and $306/sqft respectively.
With continued threats of mortgage interest rates rising later this year, rates for qualified borrowers has remained low (under 3%) for 6 of the last 7 weeks.
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.