** Data in this the July Market Report reflect market activity from JUNE 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 (MSP) in Reno-Sparks dropped slightly, down 2.4% from $615,000 to $600,000. The MSP is also 13% higher than in June 2021.
- While the Median Sales Price (MSP) in Reno inches up 0.8% to $635,000, the MSP in Sparks dipped 3.3% to $551,000 in June 2022. The MSI is still 15.5% and 14.6% higher respectively compared to June last year.
- Closed sales are down 14.2% compared to May 2022 and down 30.3% compared to June 2021. We strongly suspect that the drop in volume is attributed to recently raised interest rates burdening potential buyers.
- The graph above illustrates the breakdown of Closed Sales by price in Reno & Sparks combined during June 2022.
- Month-over-month, the Sold Price per Square Foot took a dip 2.7% month-over-month and is 12.8% higher than June last year. The drop from May to June appears to be the largest decrease month-over-month in recent years.
- The graph above shows the Median Sold Price per Square Foot by Price Range.
- Patience, patience, patience… Sellers over the last few months have experienced slow-down in the rate of sales, also measured by “Months Supply of Inventory (MSI).” MSI shifted from 0.8 MSI to 1.2 MSI to 1.5 MSI and now 2.6 MSI over the last few months. Month-over-month, the MSI increase by 61.2% and year-over-year it increased 331%. Though this does appear to be a jaw-dropping statistic, do realize how artificially fast the rate of sales was during the last 2 1/2 yeas (the “COVID MARKET”). A “balanced market” is approximately 5-7 months supply.
- As seen in the chart above, the Months Supply of Inventory is are inching up toward the balanced market in the lowest and highest price ranges.
- Naturally, with the rate of sales declining (as seen in the MSI numbers), the median Days to Contract is a contributing factor of that slow-down we are experiencing. The median number of days to contract for sale has increased from 6 to 15, a 150% jump month-over-month, and 5 to 15, a 200% climb year-over-year.
- The graph above illustrates the breakdown of median Days to Contract by price range.
- New Pending Sales dropped 9.5% from May to June 2022. There are 29.4% fewer New Pending Sales compared to last year.
- As Sellers are realizing that our market has begun to shift, many are finding that now is “the time” to get out from under it.
OTHER INTERESTING STATS TO KEEP AN EYE ON:
- Keeping an eye on the distressed sale market, at this point, we are NOT seeing that recent market activity is causing more properties to be sold as foreclosures. Short-sales are few and far between due to the great amount of equity many home owners currently have in their properties.
- The % of Cash Purchases in June 2022 has increase to 27.1% for all single family sales in Reno-Sparks.
- At $600,000, The Median Sales Price (MSP) in Reno-Sparks, NV, decreased 2.4% month-over-month and is 13.2% higher year-over-year. While the MSP was relatively flat in Reno, the Sparks, MSI decreased 3.3% since May 2022.
- And while New Pending Sales declined in June 2022, New Listings increased. These two factors, combined with the an increase in Days to Contract, indicate the real slowdown that our Reno-Sparks real estate market is feeling.
- Inflation and rising mortgage interest rates appear to have been leading causes for sales to slow significantly (compared to during the rapid “COVID Market.”) However, is this the correction in our market that we needed?
- Interest rates are expected to sharply increase again… Washington Post reports, “The Federal Reserve Board, as many of you know, is widely expected to announce later this month that it’s raising interest rates by three-quarters of a percent. That would be the second such increase in two months — and 1.5 percent over two months is a very, very big deal by Fed standards.
- How will another jack in interest rates affect the local and national real estate markets? Time will tell…
Do you need expert guidance for your next real estate purchase or sale? As a Buyer, you have more negotiating power than you have in many years, so this may be the time to leverage your next purchase. Sellers… Let’s meet to strategize about how to price your property strategically in our marketplace and present it professionally. 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!
~Denise Hallerbach, Broker-Owner, INTERO RENO.