March 2023 Market Report

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

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 2.4 months, meaning that if the rate of sales continued at the same rate as it did in February, the entire housing inventory would be depleted in 2.4 months. A “balanced market” is typically between 5 and 7 months.

The $1M+ priced homes are clearly in a “Buyer’s Market” in February 2023, with homes priced over $1.5M having a 14 Month Supply of Inventory indicating a significant slow rate of sales in the highest-end, luxury market in Reno-Sparks.

Great news for Sellers… the Median number of Days to receive an acceptable offer over all price-points dropped from 57 to 33, about a 42% decrease in one month!

What a difference a month makes!! The number of days to receive an acceptable offer improved at all price-points except the $1.5M+ highest end, luxury market.

After emerging from the holidays and one of the harshest winters in recent history, we’re starting to see signs of more life in the Reno-Sparks Market. The number of Pending Sales in February is 50% higher than just 2 months ago.

The percentage of short sales and foreclosures, also referred to as “distressed properties,” was only 0.3% of the total market in February 2023. This is more great news for many homeowners today!

SUMMARY:

- The Median Sales Price in February 2023 remained stable in both Reno and Sparks, NV.
- The biggest change during the last TWO months of activity in our local market, is the sharp increase in the number of Pending Sales. Reno-Sparks saw a 50% increase in Pending Sales since December 2022.
- What about Mortgage Rates?
  - According to CBS.com, as of Monday, March 6, “the average interest rate for the benchmark 30-year fixed mortgage reached 7.08%. However, with the economy expected to cool and possibly dip into a recession, many recent forecasts expect rates to drop to 6% or below in 2024, including a Fannie Mae projection of 5.2%.”
- But does this mean you, as a Buyer, should try to “time the market?” Many experts suggest timing the market is extremely difficult. And though we have seen a correction in pricing since the high of May 2022 (13% decrease in Median Sales Price since May 2022) here in Reno-Sparks, we cannot deny that our inventory is still very low, and Buyer demand will naturally pick up in the coming months. As we move out of winter and into the typical spring & summer buying seasons, low inventory and increase in demand usually leads to one of two outcomes… price increases or, at worst, stabilization of prices.
- Sellers… If you are considering selling your home, let’s start talking now. Preparation is critical for discriminating Buyers, and I have the tools and experience to help you prepare and stage for marketing and selling. Contact me today for my expert advise to get you moving in the right direction.
- And Buyers… Before the competition amongst other Buyers gets challenging again, take advantage of the negotiating power that many Buyers are enjoying these days. I am negotiating credits from Sellers to BUY DOWN my Buyers’ interest rates to LOWER their monthly payment, making their purchase now more affordable! 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.