October 2022 Market Report

** Data in the October 2022 Market Report reflect market activity from September 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.

The Median Sales Price (MSP) in Reno-Sparks combined dropped again for the forth consecutive month, down 5.3% from $565,000 to $535,000. The MSP is just 0.5% higher than in September 2021.

The Median Sales Price (MSP) in Reno and Sparks both declined month over month, down 9.3% in Reno and down 2.1% in Sparks. The MSP in Reno is 1.8% lower compared to September last year and 2% higher in Sparks.

Closed Sales inched up again about 2% compared to August 2022 and are down 22.7% compared to September last year.

The graph above illustrates the breakdown of Closed Sales by Price Point.

Median Sold Price per Square Foot was $301/SF, down another 2.9% compared to August 2022 and is exactly the same as it was one year ago.

The Months Supply of Inventory (MSI) is the number of months it would take to sell through the available inventory at the current rate of sales. The MSI in September was 2.9 MSI, meaning that if the rate of sales continued at the same rate as it did in September, the entire housing inventory would be depleted in 2.9 months. The MSI in September 2022 was 4.6% faster month-over-month and is 160% slower than the same time last year. Note; a “balanced market” is approximately 5-7 months supply.

The MSI in the luxury market ($1.5M+) dropped from 10 MSI to just over 7 MSI month-over-month.

Median Days to Contract has increased from 32 to 38, an 18.8% jump month-over-month, and 375% leap year-over-year. However… let’s take a look over the last several years… As noted in previous market reports, the Median Days to Contract is still WELL below the peaks of 2016, 2018, & 2019.

The side-by-side graphs above show the changes across all price points for the Median Days to Contract.

New Pending Sales decrease about 20% from August to September 2022. There are also about 30% fewer New Pending Sales compared to last year.

11.5% fewer New Listings hit the market in September 2022 compared to August 2022. We also saw a 23.4% decline in New Listings compared to last year.

OTHER INTERESTING STATS TO KEEP AN EYE ON:

The % of Cash Purchases has dropped 10.3% month-over-month for all single family sales in Reno-Sparks and are 4.4% higher than last year. 22.8% of all sales in September 2022 were cash.

As a result of fatigue and frustration, Sellers have been pulling their homes from the market and/or allowing their listings to expire at the end of their listing period. We have seen a 148.6% increase in Unsold Listings compared to September 2021.

The number of Active Listings at the end of the month dropped slightly (down 3%) from August to September 2022. The number of Active Listings at the end of the month is 101% higher than in September 2021 when inventory was at an all-time low.

14% of all sales during September 2022 resulted in closing with prices above list price. This stat has dropped 7.4% month-over-month and about 70% year-over-year, but is in line with normal activity compared to “pre-COVID” market conditions.

SUMMARY:

- I have been describing the real estate market as “sloppy” at the moment. While Sellers become more accustomed to potentially longer listing periods before receiving an acceptable offer, many Buyers have become hesitant about their purchases, with higher mortgage rates in play and fear that the market will continue to drop after they purchase.
- Fear not! The rapid appreciation experienced during the first 2 years of the pandemic appears to have ceased, but the market is not dead, the basic principles of supply and demand will still be at play in the long-run.
- At the moment, the reality is that the housing inventory is still low and the rate of sales at 2.9 Months Supply of Inventory means for most price points, and so the market is still not considered “balanced.” It is technically considered to be a “Seller’s Market.”
- More important than ever… Sellers must not over-price their properties when listing them for sale. Overpriced properties tend to sit longer and lose more value in the long-run due to the need for eventual significant price drops. Maintenance and proper preparation & staging are critical for successful sales as well.
- And for Buyers… now is the time to exercise the option for Sellers to provide incentives to you that leverage your home-buying power and actually LOWER your monthly payment. Contact me today so I can explain how to accomplish this!

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 professionally prepare and price your property strategically in our marketplace. 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!

~Denise Hallerbach, Broker-Owner, INTERO RENO.