** Data in this report reflect market activity from MARCH 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.
- Month-Over-Month, the Median Sales Price in Reno-Sparks bumped up 3% from $560,000 to $575,000. This also represents a 20% increase since March last year.
- As typically experienced at the beginning of the Spring selling season, the # of Sold Units has jump 30% month-over-month, from 376 units to 488 units sold. The # of Units Sold is 2.7% higher this year compared to March 2021.
- Only 27 homes priced under $400,000 sold during March 2022. 54% of our inventory in March 2022 sold in the range of $400,000 to $750,000.
- We are continuing to see an increase in the Sold Price per Square Foot, a 4.7% increase from February to March 2022, and a 22% increase compared to March 2021.
- Months Supply of Inventory (MSI), a calculation of the rate of sales, dropped slightly from 0.8 to 0.7 MSI (a slightly faster pace). The MSI, at .07 is ever-so-slightly slower than March last year. The current MSI indicates that if sales continue at the same pace they kept during March of 2022, and no new listing are added to the market, the entire inventory of single family homes would be “sold out” in approximately 3 weeks. A “balanced market” is approximately 5-6 MONTHS supply. The Months Supply of Inventory is a good indicator for monitoring market shifts in the real estate market. Until we start seeing this statistics increase to more of a balanced market, we will likely continue to see an increase in sales prices.
- Single Family Residences in Reno-Sparks continued to move from Listing to contract status extremely quickly during March 2022. Median Days from Listing to Accepted offer was only 5 days, considering all price points.
- The graph above shows the Median # of Days to Contract by Price. In March, 2022, homes in the $200k to $300k price range took a median 25 days to get into contract. As seen in the graph above, the rest of the entire market is moving extremely quickly.
- As seen in the few preceding months, each turn of the New Year begins another cycle of increased activity leading to Spring/Summer, historically the most active real estate selling season. The # of New Pending Sales in March 2022 (homes with accepted offers) increased again 9.5% month-over-month but decreased 19% compared to March 2021.
- As seen in previous months, the bulk of New Contracts in the Reno-Sparks market continues to lie in the $400,000 to $750,000 price ranges.
- The # of New Listings is also trending upward, with 593 single family homes that came to market in March 2022. March 2022’s # of New Listings increased 25% compared to February 2022, but is 6.3% lower than March 2021. As seen in the circled portions of the chart above, this year’s activity mirrors the activity that took place last year.
- At $575,000, The Median Sales Price in Reno-Sparks, NV, increased 3% month-over-month and jumped 20% year-over-year.
- New Pending Sales and New Listings continue to trend upward. This is a common event that usually happens in the Spring months. However, these numbers are both lower this year compared to the same time period last year.
- The real estate market in Reno-Sparks continues to move at a fast pace, with an average of only 5 Days to Contract over all price points combined. But the biggest recent question we are hearing a lot is, “Who and/or what is in control of real estate market?” Possible answer… “The Federal Reserve.”
- “Taking some air out of the crazed market… is precisely what the Federal Reserve wanted to do when it raised its key interest rate in March and signaled more increases to come. Mortgage rates have surged in response, jumping to 5 percent from slightly more than 3 percent since the start of the year.” (NYTimes.com). Rates are currently over 5% and expected to continue to rise. Will higher mortgage rates cause Buyers to retreat from the market? Or will will be threat of further rises keep Buyers scrambling to get into contract and lock their rates before they go any higher? Only time will tell.
- What we do know, is that inventory is still extremely low and we still have many Buyers still fleeing other states and moving to Nevada. Though I don’t have a crystal ball, I believe we will still see prices rising in Northern Nevada, just not as sharply as we have in recent years.
Do you need expert guidance for your next real estate purchase or sale? I have had great success with helping my Buyers navigate this crazy market and get them into contract AND helping my Sellers get top-dollar on their sales!! I am here for you, whatever your real estate needs are. Email me at firstname.lastname@example.org or reach by cell at 775-233-0682 so we can discuss the best plan for YOU! Thank you.
~Denise Hallerbach, Broker-Owner, INTERO RENO.
In the second half of this year, the housing market surged with activity. Today, real estate experts are looking ahead to the winter season and the forecast is anything but chilly. As Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), notes:
“It will be one of the best winter sales years ever.”
The typical winter slowdown in the housing market is simply not on the radar. Here’s why.
While today’s historically low mortgage rates are expected to remain low, they won’t be this low for much longer. This could be the last chance for homebuyers to secure such low rates, and they’re ready to take action. In a recent article, Bankrate explained:
“If you’re looking to buy a home…expect mortgage rates to remain low into 2021. However, the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.”
As long as we continue to see low interest rates, we’ll see hopeful buyers on the hunt for their dream homes. Yun confirmed:
“The demand for home buying remains super strong…And we’re still likely to end the year with more homes sold overall in 2020 than in 2019…With persistent low mortgage rates and some degree of a continuing jobs recovery, more contract signings are expected in the near future.”
The challenge, however, is the lack of homes available for sale. With that in mind, all eyes are on homeowners to see if they’ll sell this winter or wait until spring. Danielle Hale, Chief Economist for realtor.com, says it’s best for sellers to capitalize on this moment sooner rather than later:
“We currently see buyers sticking around in the housing market much later than we usually do this fall. If that trend continues, we will see more buyers in the market this winter, too. So, this winter is likely to be a good time to sell.”
With buyers ready to stay active this winter, sellers who want to close a deal on the best possible terms shouldn’t wait until spring to put their homes on the market.
Experts agree the winter housing market could potentially be bigger than ever. Whether you’re ready to buy or sell, let’s connect today so you can be in your dream home by the new year.