November 2022 Market Report

** Data in the November 2022 Market Report reflect market activity from October 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 ticked up 1.8% from $530,320 to $540,000 months-over-month. The MSP is exactly the same as October last year!

The Median Sales Price (MSP) in Reno and Sparks both inched up month-over-month, up 3.7% in Reno and up 0.5% in Sparks.

Closed Sales dropped 21.7% compared to September 2022 and are down 34.7% compared to October last year.

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

Median Sold Price per Square Foot also ticked up 1% to $304/SF, and is 1.3% lower compared to 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 October 2022 was 3.4 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 3.4 months. The MSI in October 2022 was 15.5% slower compared to September 2022 and is 212.6% slower than the same time last year. Note; a “balanced market” is approximately 5-7 months supply.

Over the last few months, the Months Supply of Inventory in the luxury market has exceeded the threshold for a balanced market (see light blue range for Balanced Market), pushing the $1.5M+ properties into an official “Buyer’s Market.”

Median Days to Contract has remained fairly constant now at 36 days from listing to contract, a 323.5% increase year-over-year. While the market feels very slow compared to the rapid moving COVID-19 years (2020-2021) our Median Days to Contract are still WELL below the peaks of 2012, 2016, 2018, & 2019.

The side-by-side graphs above show the changes across all price points for the Median Days to Contract. All homes priced under $1.5M were on the market less than 40 days

New Pending Sales dipped 2.4%% from September to October 2022. There are also about 40% fewer New Pending Sales compared to last year. Again, look back over the last several years to realize that our market is now for pending sales is behaving fairly normally.

23% fewer New Listings hit the market in October 2022 compared to September 2022. We also saw a 32% decline in New Listings compared to last year.

OTHER INTERESTING STATS TO KEEP AN EYE ON:

22.6% of all sales in Reno-Sparks were cash transactions. The % of Cash Purchases increased 22.3% month-over-month for all single family sales in Reno-Sparks and are is relatively unchanged compared to October 2021.

Sellers continue to show signs of frustration as homes have not been selling as quickly as they have over the last couple of years. Consequently, they many 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 185% increase in Unsold Listings compared to the same time last year.

The number of Active Listings at the end of the month dropped 9.5% from September to October 2022. The number of Active Listings at the end of the month is 104% higher than in October 2021 when inventory was near an all-time low.

14% of all sales during October 2022 resulted in closing with prices above list price. This stat is relatively unchanged compared to September 2022 and about 64% lower compared to October last year but is in line with normal activity compared to “pre-COVID” market conditions.

SUMMARY:

- As we head into the winter months, Buyers and Sellers are contemplating moves in a real estate market riddled with the fear of God repeatedly thrown at them from the media with low-inventory in a high interest rate climate, price reductions, potential for further drops in prices… How are Buyers are Sellers to move forward with greater confidence in the coming months and years?
- Compared to the last couple of years, the market is not as bleak as the media would have us believe. Looking back at the charts over the last several years, the real estate market in Reno-Sparks NOW looks remarkably similar to past years’ activities and trends.
- Go back to basics… It’s about supply and demand. Inventory has NOT skyrocketed during this very interesting time, and Buyers are STILL making moves to pick up properties here, especially in markets priced under $1.5M. When priced competitively, homes on the market now in Reno-Sparks ARE SELLING.
- Sellers… The winter months are not necessarily a bad time to list your home. Historically, Buyers and Sellers are more willing to get the deal done because the parties are highly motivated during this season. During winter you’ll enjoy less competition from competing Sellers in your neighborhood.
- Now more than ever, maintenance and proper preparation & staging are critical for successful sales. So if you are waiting until spring to hit the market, take advantage of the winter months to get your house great shape.
- And Buyers… You may likely have more negotiating power than during the last couple of years. As mentioned in last month’s report, now is the time to exercise the option for Sellers to provide incentives 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? 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.