December 2022 Market Report

** Data in the December 2022 Market Report reflect market activity from November 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 another 1.9% from $540,000 to $550,000 month-over-month. The MSP is 2.5% higher than November last year!

Above is the breakdown of The Median Sales Price (MSP) in Reno and Sparks. While the MSP in Reno ticked up 1.3% month-over-month in Reno, Sparks’ MSP dipped 3.3%.

Closed Sales fell 8% compared to October 2022 and are down 36.2% compared to November last year.

The graph above illustrates the breakdown of Closed Sales by Price Point. Approximately 2/3 of the sales took place in the $400k to $749k price ranges.

Median Sold Price per Square Foot took another dip, down 3.3% month-over-month and 3.8% year-over-year. The Median Sold Price per Square Foot is now $294/SQ.

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 November 2022 continues to bounce around the 3 Months Supply marker, meaning that if the rate of sales continued at the same rate as it did in November, the entire housing inventory would be depleted in 3 months. 3 MSI is still considered to be a “Seller’s Market” even though is certainly does not feel that way to many Sellers. Note; a “balanced market” is approximately 5-7 months supply.

Above is a glimpse of the market hovering around the 3 MSI marker in Reno-Sparks combined over the last few months. The highest-end, luxury market is clearly in a “Buyer’s Market.”

Median Days to Contract increased 30.6% compared to October 2022. While the market feels very slow compared to the rapid moving COVID-19 years (2020-2021) our Median Days to Contract have yet to exceed the greatest highest Median Days to Contract in 2012, 2016, 2018, & 2019.

In November 2022, the $1M to 1.5M priced homes spent the longest time on the market before receiving an acceptable offer.

New Pending Sales dropped again, down 6.7% from October to November 2022. There were about 31% fewer New Pending Sales in November 2022 compared to last year.

About 33% fewer New Listings hit the market in November 2022 compared to October 2022. We also saw a 26% decline in New Listings compared to November 2021.

OTHER INTERESTING STATS TO KEEP AN EYE ON:

23.6% of all sales in Reno-Sparks were cash transactions. The % of Cash Purchases increased 3.5% month-over-month for all single family sales in Reno-Sparks and are is 13.4% higher than last year.

More Sellers have been pulling their homes from the market, both due to frustration building in a slower market and eliminating showings during the holidays. 202 listings were taken off the market (withdrawn or expired) in November 2022.

The number of Active Listings at the end of the month dropped about 19% month-over-month. The number of Active Listings at the end of the month is 116% higher than in November 2021 when inventory was near an all-time low.

The average percentage of list price received over all price points combined we 97.4% of list price. Many of these sales occurred after price reductions from the original list price.

SUMMARY:

- “House prices are sliding, but have not collapsed.” (Forbes.com).
- “We haven’t seen absolute house price declines on an annual basis in most markets, but that could be coming over the next few months. The fall and winter period can be a slow time for the housing market, so we may be seeing some seasonal trends too. The spring is typically the start of a more robust period for the housing market, so trends in early 2023 will be telling as to the direction of house prices.” (Forbes.com)
- Supply and demand are still a factor. Since inventory has NOT skyrocketed over the last several months, and the rate of sales is 3 Months Supply, Prices have not plummeted.
- As mentioned in last month’s report: 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.
- And Buyers… You may likely have more negotiating power than during the last couple of years. Your ability to exercise requests for interest-rate Buydowns from Sellers could LOWER your monthly payment, making it more affordable than you might think! 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.