March 2022 Market Report

** Data in this report reflect market activity from FEBRUARY 2022 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.

At $560,000, the Median Sales Price in Reno-Sparks combined appears to be stable in February 2022, with only a 2% decrease month-over-month. This also represents a 24% increase since February last year. As we look back over the winter months during the last couple of years, the market has a history of flattening during this time frame compared to late spring and summer.

Number of Sold Units dipped again 7.5% from 402 to 372 month-over-month. Units Sold were down just 4% compared to February 2021. As seen later in this report however, with new contracts and listings on the rise, we should start to see the volume of sales increasing the the coming months.

The toal number of homes that sold for under $400,000 dropped from 32 to 27 month-over-month.

The Average Sold Price per Square Foot ticked up from $301/SF in January to $315/SF in February 2022. The Average Sold Price per Square foot is 22% higher than it was 1 year ago and 49% higher than 2 years ago.

The shape of the above graph is a typical representation of the Sold Price per Square Foot by Price. In the luxury market, homes priced over $1.5 million carried a significantly higher $/SF average than all other price points. This is a typical observation historically.

In February 2022, the Months Supply of Inventory (MSI), a calculation of the rate of sales, dropped slightly from 0.7 to 0.6 MSI. At 0.6 MSI, the rate of sales was 22.4% faster than last year. The current MSI indicates that if sales continue at the same pace they kept during February 2022, and no new listing are added to the market, 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 Median Days to Contract over ALL price points during February 2022 was only 5 days. Single family homes in Reno-Sparks went into contract 28.6% faster in February 2022 compared to January 2022 and 62% faster compared to February 2020!

The graph above shows the Median # of Days to Contract by Price. While it usually takes a bit longer to secure an accepted offer for homes listed over $1 million, the rest of the market is moving extremely quickly, averaging 4.5 days. That being said, the Median # of Days to Contract in the $1 million+ price points is still very fast-paced for the luxury market.

We are experiencing normal sale patterns as we climb out of the recent holidays and winter months, and move into the “spring sales season.” The # of New Contracts in February 2022 (homes with accepted offers) increased again 8.4% month-over-month and also increased 16.3% compared to February 2021.

As usual, the bulk of New Contracts in the Reno-Sparks market continues to lie in the $400,000 to $750,000 price ranges. However, the number of new contracts over time has been shifting to higher price points, and the $750,000 to $1 Million price range appears to be gaining momentum.

The # of New Listings continues to increase as we head towards spring. February 2022’s # of New Listings increased 13% compared to January 2022. As seen in the circled portions of the chart above, this year’s activity mirrors the activity that took place last year.

SUMMARY:

- The Median Sales Price is fairly holding steady, dropping 2% month-over-month. The median is up 24% compared to last year.
- The count of properties sold dropped again in February 2022, but we can expect to see that stat increase in the coming months, as New Contracts and New Listings are on the rise. Spring is nearly upon us!
- The real estate market in Reno-Sparks continues to move at a fast pace, with an average of only 4.5 Days to Contract in the “non-luxury” price points (under $1M) and 3 Weeks Supply of Inventory over all price points. Buyers should continue to see a competitive, multiple-offer market for the foreseeable future, as long as the inventory remains low and buyer activity stays high. It’s all about “supply and demand.”
- The expected continued increase of New Listings in the spring and summer will hopefully alleviate some of the pressure that Buyers have been experience. Multiple offers and competitive purchase situations have been the commonplace in the real estate market over the last couple of years.
- Many experts suggest that rental rates will continue to rise through 2022. Is this financially the right time for you or somebody you know to purchase instead of rent? Visit one of my most recent blog posts, “Are You Wondering if This Is the Year to Buy a Home?” to help you decide.

Do you need expert guidance for your next real estate purchase or sale? I have had great success with helping my Buyers navigate this crazy market and get them into contract AND helping my Sellers get top-dollar on their sales!! I am here for you, whatever your real estate needs are. Email me at 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.