April 2023 Market Report

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

• 1/3 of the sales in the Reno-Sparks market sold in the $400k to $499k price range.

• 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 March 2023 was 1.4 months, meaning that if the rate of sales continued at the same rate as it did in March, the entire housing inventory would be depleted in 1.4 months. A “balanced market” is typically between 5 and 7 months.

• As seen in the graph above, the MSI can vary greatly among various price ranges, with the higher price ranges showing a slower rate of sale, and most of the lower price ranges at a rapid rate of sale during March 2023.

• Great news for Sellers… the Median number of Days to receive an acceptable offer (averaged over all price-points) dropped from 58 to 32 to 18 in the last couple of months, nearly a 70% decrease in the median days to contract.

• However, as observed with the Months Supply of Inventory, the higher price points are spending more time on the market before receiving an acceptable offer.  The average days to contract in the $1.5M+ market is just over 80 days.

• As expected during the Spring buying season, the number of contracts or pending sales continues to rise.  This is an indicator for increasing units sold in April-May 2023 as it typically takes about 30-45 days to close these pending sales.

SUMMARY:

• • The Median Sales Price in March 2023 increased about 6% in Reno ($552,500) and was stable in Sparks ($500,000).
  • Activity is increasing throughout our region, but overall the number of units sold is only about 20-25% of the typical spring buying/selling season.
  • Months Supply of Inventory is 1.4 MSI AVERAGE over all price points, but is 3-4 Months Supply in the luxury market.
  • The most frequent question I am asked lately is, “How will the recent and current bank collapses affect the real estate market?”
    • According to Lawrence Yun, chief economist of the National Association of REALTORS®, “The Silicon Valley Bank failure, along with a few other banks, means that the Federal Reserve cannot be so aggressive in raising its short-term interest rates. Therefore, mortgage rates will decline.”  This could be good news for home buyers in the near future.
    • The collapse of banks could have also have a negative impact on tech companies who rely on funding from these failed institutions, therefore potential resulting in cut-backs and layoffs.  Ultimately, in time, these events could trickle to the real estate market.
  • In general, those Sellers who have decided to list their homes for sale now certainly have good reasons for doing so and appear to be more motivated to sell at this time.  Buyers may be in a good position to negotiate with these motivated Sellers.
  • THE BOTTOM LINE: If you are in the market to buy or sell real estate, now could be the perfect time to do so!!

If you need an expert to guide you through 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.