** Data in this report reflect market activity from MARCH 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.
- Month-Over-Month, the Median Sales Price in Reno-Sparks bumped up 3% from $560,000 to $575,000. This also represents a 20% increase since March last year.
- As typically experienced at the beginning of the Spring selling season, the # of Sold Units has jump 30% month-over-month, from 376 units to 488 units sold. The # of Units Sold is 2.7% higher this year compared to March 2021.
- Only 27 homes priced under $400,000 sold during March 2022. 54% of our inventory in March 2022 sold in the range of $400,000 to $750,000.
- We are continuing to see an increase in the Sold Price per Square Foot, a 4.7% increase from February to March 2022, and a 22% increase compared to March 2021.
- Months Supply of Inventory (MSI), a calculation of the rate of sales, dropped slightly from 0.8 to 0.7 MSI (a slightly faster pace). The MSI, at .07 is ever-so-slightly slower than March last year. The current MSI indicates that if sales continue at the same pace they kept during March of 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 Months Supply of Inventory is a good indicator for monitoring market shifts in the real estate market. Until we start seeing this statistics increase to more of a balanced market, we will likely continue to see an increase in sales prices.
- Single Family Residences in Reno-Sparks continued to move from Listing to contract status extremely quickly during March 2022. Median Days from Listing to Accepted offer was only 5 days, considering all price points.
- The graph above shows the Median # of Days to Contract by Price. In March, 2022, homes in the $200k to $300k price range took a median 25 days to get into contract. As seen in the graph above, the rest of the entire market is moving extremely quickly.
- As seen in the few preceding months, each turn of the New Year begins another cycle of increased activity leading to Spring/Summer, historically the most active real estate selling season. The # of New Pending Sales in March 2022 (homes with accepted offers) increased again 9.5% month-over-month but decreased 19% compared to March 2021.
- As seen in previous months, the bulk of New Contracts in the Reno-Sparks market continues to lie in the $400,000 to $750,000 price ranges.
- The # of New Listings is also trending upward, with 593 single family homes that came to market in March 2022. March 2022’s # of New Listings increased 25% compared to February 2022, but is 6.3% lower than March 2021. As seen in the circled portions of the chart above, this year’s activity mirrors the activity that took place last year.
- At $575,000, The Median Sales Price in Reno-Sparks, NV, increased 3% month-over-month and jumped 20% year-over-year.
- New Pending Sales and New Listings continue to trend upward. This is a common event that usually happens in the Spring months. However, these numbers are both lower this year compared to the same time period last year.
- The real estate market in Reno-Sparks continues to move at a fast pace, with an average of only 5 Days to Contract over all price points combined. But the biggest recent question we are hearing a lot is, “Who and/or what is in control of real estate market?” Possible answer… “The Federal Reserve.”
- “Taking some air out of the crazed market… is precisely what the Federal Reserve wanted to do when it raised its key interest rate in March and signaled more increases to come. Mortgage rates have surged in response, jumping to 5 percent from slightly more than 3 percent since the start of the year.” (NYTimes.com). Rates are currently over 5% and expected to continue to rise. Will higher mortgage rates cause Buyers to retreat from the market? Or will will be threat of further rises keep Buyers scrambling to get into contract and lock their rates before they go any higher? Only time will tell.
- What we do know, is that inventory is still extremely low and we still have many Buyers still fleeing other states and moving to Nevada. Though I don’t have a crystal ball, I believe we will still see prices rising in Northern Nevada, just not as sharply as we have in recent years.
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 firstname.lastname@example.org 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.