February 2023 Market Report

** Data in the February 2023 Market Report reflect market activity from January 2023 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.

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• Closed Sales fell nearly 30% compared to December 2022. This is not a surprise considering the extreme inclement weather experienced in CA and NV during the month of December and early January.  Travel from CA to NV for showings were made nearly impossible on many weekends.

• The $400k to $499k price range captured the most Buyers compared to all other price ranges.

• 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 January 2023 was 2.9 months, meaning that if the rate of sales continued at the same rate as it did in January, the entire housing inventory would be depleted in 2.9 months. A “balanced market” is typically between 5 and 7 months.

• Median Days to Contract bumped up 6.6% compared to December 2022 and has leaped a whopping 707% compared to January last year. Do note that the rapid pace of receiving accepted offers during the pandemic was highly unusual and our market is actually returning to more “normal” activity.

• In January 2023, several price ranges shot above the 70-day marker from listing date to date of an acceptable offer as depicted in the graph above.

• New Pending Sales increased 25.7% month-over-month, hopefully indicating a positive shift in market activity after the slow harsh winter-weather months we experienced.

• The percentage of short sales or foreclosures, also referred to as “distressed properties,” remains low at 3.1% of the total market in January 2023.

SUMMARY:

• • The Median Sales Price in January 2023 was fairly stable in both Reno and Sparks, NV.
  • Recently announced on social media, Tesla is planning a $3.6 Billion expansion of the Nevada gigafactory at Tahoe Reno Industrial Center that will increase Telsa’s battery manufacturing and begin production of the new class 8, heavy duty, fully electric truck, the Tesla Semi.  The expansion will bring 3,000 new jobs to the factory.
  • Also, in a recent interview, 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.”
  • As businesses continue to relocate to Northern Nevada from California, and the extreme winter conditions begin to clear, and interest rates continue to decline, we should be seeing an increase in activity and sales as we head into the spring selling season.
  • 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.  Though mortgage rates have dropped to the lowest level in 5 months, you ability to exercise requests for interest-rate Buy downs from Sellers could LOWER your monthly payment even more, 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.