December 2021 Market Report

** Data in this report reflect market activity from NOVEMBER 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) has remained steady in November and was $535,000 in Reno-Sparks. The MSP is 18.2%% higher than November 2020, and 33% higher than November 2019. The steady increase in prices has been fueled by a low-inventory market and high buyer demand. 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.

6.5% fewer single family homes sold in Reno-Sparks in November 2021 compared to the previous month. And 12.2% fewer homes sold in November 2021 compared the same month last year. Roughly 17% more single family homes sold compared to two years ago.

The Average Sold Price per Square Foot is also holding fairly steady in November 2021, at $306/SF compared to $308/SF month-over-month. The Average Sold Price per Square Foot is 26.4% higher than November last year and 41% higher than two years ago. This statistic represents the average over ALL price points. See chart below for the breakdown of The Average Sold Price per Square Foot by price range:

Months Supply of Inventory (MSI), a calculation of the rate of sales, in November 2021 was 0.8 MSI. compared to 1.0 MSI the previous month. This means that if the rate of sales in November continues at the same pace, the entire inventory of single family homes would be “sold out” in approximately 3 weeks. A balanced market is approximately 5-6 months supply.

The graph to the right shows the changes of MSI by Price month-over-month.

The Median Days to Contract over ALL price points during November 2021 was 17 days compared to 9 days in October, showing an 89% increase month-over-month.

The graph to the right shows the Median Days from Listing to Contract over time. Though we have seen the fast-paced market in past years (usually during the spring months), the most consistent period of rapid movement has happened since the beginning of the COVID-19 pandemic.

The graph to the right shows Days to Contract by Price Range. During November 2021, Days to Contract increased or remained constant at nearly every price point. This is a typical observance during winter months.

The # of New Contracts (homes with accepted offers) decreased 17% month-over-month and increased 11% compared to last year.

The graph to the left shows the Number of New Contracts over time. Looking back over past Novembers, we see that the # of New Contracts this year is actually a touch higher that in previous years.

The # of New Listings dropped from 733 in September to 606 in October 2021, a 12.6% decrease. The # of New Listings in October 2021 was nearly identical compared to last year. Looking back over the last few years, the lowest count of New Listings brought to market is at its low every November and December. We expect that New Listings will begin to increase again in January or February.

SUMMARY:

- The Median Sales Price is holding steady at $535,000 for Reno and Sparks combined.
- # of Units Sold is declining slightly through the winter months, as expected.
- A balanced market sees 5-6 Months Supply of Inventory (MSI) and the current rate of sales is 3 Weeks Supply of Inventory. We are still very much in a strong Sellers’ market.
- # of New Listings is reaching its low point for the year, as seen in the previous graph. The statistic is following its normal pattern over the years.
- Serious buyers are plentiful, and the rate of sales at 3 weeks Supply of Inventory indicates that the market is not significantly impacted by the typical “slower” winter selling season. In a nutshell, buyer demand continues.
Predictions for the coming months and year?
- Obviously we don’t have a crystal ball, and can’t be 100% certain about what will happening in the coming months and year but here is what we are hearing from other experts in the field:
  - 1) Mortgage Interest Rates are expected to climb in 2022. Will this news get Buyers “off the fence” to purchase now in our already LOW inventory market?
  - 2) If more Buyers get “off the fence” and purchase with very low inventory, we will likely see more multiple offer situations, and possibly purchases at or over asking price (IF the asking price is appropriate).
  - 3) If Mortgage Interest Rates rise too high, some Buyers may retreat, thus potentially causing a flattening of sales and market appreciation.
  - 4) Reno-Sparks is still perceived to be a desirable place to live and work. Reno was ranked 12 in the U.S. for the “Best Cities for Young Professionals in 2021” as reported at the Economic Development Authority of Western Nevada website: edawn.org.
  - 4) Bottom line: We will just have to wait and see!!
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.