May 2022 Market Report

** Data in this report reflect market activity from APRIL 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 again another 3.5% from $575,000 to $595,000. This also represents a 20.6% increase since April 2021. These stats are nearly identical from last month’s market report.

• The gap between the Median Sales Price (MSP) in Reno and the MSP in Sparks is $80,000, with the MSP in Reno sitting at $630k and the MSP in Sparks holding steady at $550k during April 2022.

• The number of Closed Sales dipped insignificantly (3.2%) month-over-month.  17% fewer single-family homes sold in Reno-Sparks in April 2022 compared to the same month last year.

• The above graph illustrates the breakdown of single family homes that sold by price-point.  Only 24 units sold for under $400k and 21 properties sold for over $1.5M during April 2022.

• The Sold Price per Square Foot, ticked up again about 2% month-over-month and has leaped 21% year-over-year.

• The graph above shows the Median Sold Price per Square Foot by Price Range.  As usual, properties that sold for more than $1.5M had a the highest Median Sold Price per Square Foot at $483/SF.

• Months Supply of Inventory (MSI), a calculation of the rate of sales, moved from 0.8 MSI to 1.1% since March 2022, representing a 48% increase month-over-month and nearly a 77% increase year-over-year.  The current MSI indicates that if sales continue at the same pace they kept during April of 2022, and no new listing are added to the market, the inventory of single family homes would be “sold out” in approximately 1 month.  A “balanced market” is approximately 5-6 MONTHS supply, so although we are starting to see a slowing in the rate of sales, we still have ground to cover to get to that balanced market. The Months Supply of Inventory is a good indicator for monitoring market shifts in the real estate market.  Are we starting to see that shift?  Let’s see what happens in the coming months…

• The Months Supply of Inventory observed by Price Range was around 3 months supply for homes that sold under $300k) and for homes in the luxury market that sold over $1.5 Million).

• The graph above illustrates the slower moving luxury market, homes priced over $1.5 Million with Median Days to Contract (listing to accepted offer) at 28 days. The $500k to $599k range received acceptable offers the quickest at 5 days.

• New Pending Sales increased in April 2022 from 481 to 531 units, a 10.4% increase since March 2022.  However, there are 6.2% fewer New Pending Sales in April 2022 compared to one year ago.

• The bulk of our inventory transitioning from Active to Under Contract/Pending status, for the last few years, has been in the $400k to $749 ranges.  In April 2022, the $750k to $999k properties appear to be gaining traction.

• The # of New Listings also continues to trend upward, with 734 single family homes that came to market in April 2022.  April 2022’s # of New Listings increased 23% compared to March 2022, and has also increased 10.7% year-over-year.

SUMMARY:

• • At $595,000, The Median Sales Price in Reno-Sparks, NV, increased 3.5% month-over-month and jumped 20.6% year-over-year. 
  • New Pending Sales and New Listings continue to trend upward.  As we experienced last month, this increase in new contracts and listings falls in line with the normal spring selling season. However, New Pending Sales are DOWN compared to last year, which may indicated the beginning of the market “slow down” many experts and real estate professionals have been predicting.
  • With inflation on the rise, mortgage interest rates are subsequently increasing as well, causing many Buyers these days to think twice about making a purchase at this time.  Inventory is not moving as quickly has it has in recent months and years.
  • However, in an overheated housing market like today’s, high inflation and rising interest rates “may not be all bad,” according to George Ratiu, senior economist for Realtor.com. “As I’m seeing prices adjust already in response to higher rates, higher inflation and new supply, it tells me the market actually seems to be moving toward normalization without a bubble-like bursting,” Ratiu says. (www.money.com – “Bubble or No Bubble? What History Tells Us About the Likelihood of a Housing Crash This Year.”)
  • Keep in mind that a balanced market is 5-6 Months Supply of Inventory (MSI), and in April 2022, the MSI was 1.1 MSI, so we are a ways off from that balanced market environment.

Do you need expert guidance for your next real estate purchase or sale?  I have had great success with helping my Buyers navigate the ever changing 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.