June 2022 Market Report

** Data in this the June Market Report reflect market activity from MAY 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 ticked up again another 3.4% from $595,000 to $615,000. This also represents a 23% increase since May 2021. These stats are nearly identical from the previous last TWO months’ market report.

While the Median Sales Price (MSP) in Reno was unchanged month-over-month at $630,000, the MSP in Sparks increased 3.6% and was $570,000 in May 2022. Compared to the same time last year, the MSP increased 14.5% and 25.7% in Reno and Sparks respectively.

The number of single family homes that sold in Reno-Sparks during the month of May 2022 is just 5% fewer than last year, and has increased 4.4% since April 2022.

The above graph illustrates the breakdown of single family homes that sold by price-point. Only 23 units sold for under $400k.

The Sold Price per Square Foot, bumped up again about 1.8% month-over-month and has jumped 18% 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 Sale Price per Square Foot at $468/SF.

Months Supply of Inventory (MSI), a calculation of the rate of sales, moved from 0.8 MSI to 1.2 MSI to 1.5 MSI over the last few months. Month-over-month, the MSI increase by 23% and year-over-year it increased by about 120%. 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. Of all the numbers to watch, MSI is one of the most important indicator for market shifts.

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 median days from Listing to Accepted Offer (Days to Contract) bumped up 16.7% from 6 to 7 month-over-month, and up 40% year-over-year.

The graph above illustrates the homes selling under $750 still moved relatively quickly during May 2022.

New Pending Sales increased in May 2022 dropped minimally from 506 to 490, 3.2% a decrease since April 2022. There are 18.7% fewer new contracts compared to last year.

At 735, the # of New Listings was relatively flat month-over-month, but is 18.4% higher than the same time last year.

SUMMARY:

- At $615,000, The Median Sales Price in Reno-Sparks, NV, increased 3.4% month-over-month and jumped 23% year-over-year.
- New Pending Sales and New Listings were relatively flat compared to March-April. Usually, the trend of New Pending Sales and New Listings increases through the Spring. The market has begun to show signs of slowing.
- Inflation and rising mortgage interest rates appear to be the leading factors for 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.
- Economic strain, inflation, high gas-prices, insane taxes and a higher cost of living is still causing many Californians to continue to move from the Golden State in search for relieved on their wallets. Reno-Sparks’ close proximity to California and favorable tax climate continues put Nevada in a unique position compared to the rest of the US.
- Our real estate market in Northern Nevada is slowing, but not dead, So while it is taking a little longer to accept an offer, the prices have not been impacted at this time.
- Also, do keep in mind that a balanced market is 5-6 Months Supply of Inventory (MSI), and in May 2022, the MSI was 1.5 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.