January 2023 Market Report

** Data in the January 2023 Market Report reflect market activity from December 2022 compared to the previous month and year. Information is gathered from the Sierra Nevada 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 dipped 5.5% from $550,000 to $519,950 month-over-month. The MSP was 4.6% lower than December 2021.

Above is the breakdown of The Median Sales Price (MSP) in Reno and Sparks. The MSP in both Reno AND Sparks decreased approximately 6% in Reno and 3% in Sparks respectively.

Closed Sales fell another 4% compared to November 2022, marking a 12% decline over the last two months. The number of Closed Sales are 35.4% lower than December last year.

The graph above illustrates the breakdown of Closed Sales by Price Point. More than 1/4 of the total sales in December closed in the $400k to $499k price range.

Median Sold Price per Square Foot took another dip, down 3.1% month-over-month and 6.6% year-over-year. The Median Sold Price per Square Foot is now $285/SQ.

The Months Supply of Inventory (MSI) represents the number of months it would take to sell through the available inventory at the current rate of sales. The MSI in December 2022 was 2.5 months, meaning that if the rate of sales continued at the same rate as it did in December, the entire housing inventory would be depleted in 2.5 months. A “balanced market” is typically between 5 and 7 months.

Median Days to Contract increased 12.8% compared to November 2022 and has leaped 278.6% compared to the same time last year.

In December 2022, the $600k to $749k price range spend the longest period of time on the market before receiving an acceptable offer at 71 median days to contract, followed closely by the $1M to 1.49M at 69 days.

New Pending Sales dropped again, down nearly 9% from November to December 2022 at 286 contracts for purchase. There were about 23.3% fewer New Pending Sales in December 2022 compared to last year.

12.5% fewer New Listings hit the market in December 2022 compared to November. We also saw a 16.6% decline in New Listings compared to December 2021.

OTHER INTERESTING STATS TO KEEP AN EYE ON:

About 26% of all sales in Reno-Sparks were cash transactions. The percentage of of Cash Purchases increased 13% month-over-month for all single family sales in Reno-Sparks and is 31% higher than last year, December 2021.

183 listings were withdrawn in December 2022, likely due to holidays, inclement weather and Seller fatigue related to increasing days on the market.

The number of Active Listings at the end of the month dropped about 20% month-over-month, and is 136% greater than the end of 2021.

At 11.6%, the percentage of sales closed above list price was showed a 16% increase compared to November 2022 and a 61% decrease compared to December 2021.

The average percentage of list price received (over all price points) was 96.6%, representing a 0.5% dip month-over-month and a 3% drop year-over-year.

The percentage of short sales or foreclosures, also referred to as “distressed properties,” remains low at 3.6% of the total market in December 2022.

SUMMARY:

- In a recent article at RGJ.com, “Reno… ranked the 3rd Most Popular Destination for Companies Moving Out of California.” What does this potentially mean for our local economy and housing market in the near future?
- President and CEO of EDAWN (Economic Development Authority of Western Nevada), Mike Kazmierski, states that “a recession makes us more attractive to businesses… If we see a recession this year, we’re expecting to see more interest from California as companies start to make cuts and look at our lower cost of doing business.”
- So despite what appears to be a grim report here at the beginning of 2023, the overall prognosis for our region looks good. Click HERE to listen to Elliot Eisenberg’s latest Economic Update that addressees any concerns you might have regarding real estate in relation to the recession as well.
- While our LOCAL inventory may still be still low (especially compared to other parts of the country), the inventory is expected to increase in coming months as it does historically every year.
- Sellers… If you want to list your home while inventory is still low resulting in less competition, now is the time. Buyers looking during the winter months are usually serious and motivated to get the deal done as well.
- And Buyers… It is possible you could have more negotiating power than during the last couple of years. Your ability to exercise requests for interest-rate Buy downs 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.