October 2021 Market Report

** Data in this report reflect market activity from SEPTEMBER 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 (MSP) in Reno-Sparks held steady from August to September, at roughly $530,000 for roughly the last 4 months.  The MSP is 20.5% higher than September 2020, and 34% higher than September 2019.  The MSP sits at the very middle of a data set, with exactly half of the houses priced for less and half priced for more.  Will we continue to see a leveling off Median Sale Price as we move into winter? Stay tuned!

• Up only 3.7% from the previous month, 582 Single Family Homes sold in September 2021. 16.7% fewer homes sold in September 2021 compared to September 2020.

• Above is the breakdown of Single Family Homes sold in Reno and Sparks by price point, with the 1/2 of all the homes selling in the $400k to $599k ranges.

• The Average Sold Price per Square Foot over all price ranges ticked up slightly from $301/SF to $302/SF month-over-month.  The Average Sold Price per Square Foot is 26% higher than last year and 38.5% higher than two years ago.

• For the second straight month, the Months Supply of Inventory (MSI) in September 2021 was .90 MSI.  This means that if the rate of sales in September continued at the same pace through that month, the entire inventory of single family homes would be “sold out” in one month.  A balanced market is approximately 5-6 months supply.

• MSI by price shows the change of the rate of sales most significantly increased in the luxury market from August and July to September 2021.

• Please note that the Days to Contract reporting has changed this month.  The Reno-Sparks Association of Realtors is now reporting the MEDIAN Days to Contract instead of the AVERAGE Days to Contract.  This reporting reveals a more realistic picture of what Realtors are experiencing on a daily basis.  That being said, the Median Days from Public Listing to Acceptance of Offers was only 8 days in September 2021.

• The # of New Contracts (homes with accepted offers) dipped only 3% month-over-month and is 10% more than September last year.  The # of New Contracts is up 16% compared to two years ago.

• The # of New Listings at 687, dipped 6.3% compared to August 2021 and is 7.2% higher than September last year.  22% more New Listings hit the market in September 2021 compared to two years ago.

SUMMARY:

• • The Median Sales Price is holding steady at $530,000 in Reno and Sparks combined.
  • The Number of Units Sold increased slightly in September compared to August.
  • The rate of accepted offers and sales continues to favor most Sellers.  While a balanced market sees 5-6 Months Supply (MSI), the MSI over all price points is still 1 month.
  • The appropriate pricing of listings continues to be a critical factor for determining Days to Contract.  Homes priced significantly above market value tend to not receive offers, and therefore sit on the market longer than homes prices competitively.
  • We have seen a slightly higher volume of New Listings now and we did two years ago.  And looking at both the New Contracts and New Listings graphs, the trends over the last couple of years are nearly identical.
  • The biggest shift in inventory movement was observed in the luxury market, now at 4.2 Months Supply of Inventory, as this selection of homes inches closer to a balanced market.
• Predictions for what is to come?
  • Chief economists in the real estate industry predict that our enjoyment of sub-3% mortgage rates are behind us at the moment,  and that rates will inch closer to approximately 3.5% by the year’s end. The threat of higher rates may put more pressure on Buyers to take action now.
  • Incentive to purchase with rates before they increase, continued low inventory, and steady flow of relocation buyers into Nevada appear to keep the Median Sales Price steady at the moment.
  • As with any market, Supply and Demand will continue to dictate price movement.  As long as inventory is low and demand remains constant, prices will most likely continue to increase… perhaps more after the fall and winter months?
• Are you in need of guidance for your next real estate purchase or sale?  I am here for you.  Email direct dhallerbach@intero.com or reach by cell at 775-233-0682 so we can discuss the best plan for YOU!  Thank you, ~Denise Hallerbach, Broker-Owner, INTERO RENO.