Reno-Sparks Market Report October 11, 2022

October 2022 Market Report

** Data in the October 2022 Market Report reflect market activity from September 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.

  • The Median Sales Price (MSP) in Reno-Sparks combined dropped again for the forth consecutive month, down 5.3% from $565,000 to $535,000. The MSP is just 0.5% higher than in September 2021.

  • The Median Sales Price (MSP) in Reno and Sparks both declined month over month, down 9.3% in Reno and down 2.1% in Sparks.  The MSP in Reno is 1.8% lower compared to September last year and 2% higher in Sparks.

  • Closed Sales inched up again about 2% compared to August 2022 and are down 22.7% compared to September last year. 

  • The graph above illustrates the breakdown of Closed Sales by Price Point.

  • Median Sold Price per Square Foot was $301/SF, down another 2.9% compared to August 2022 and is exactly the same as it was one year ago.

  •  The Months Supply of Inventory (MSI) is the number of months it would take to sell through the available inventory at the current rate of sales.  The MSI in September was 2.9 MSI, meaning that if the rate of sales continued at the same rate as it did in September, the entire housing inventory would be depleted in 2.9 months.  The MSI in September 2022 was 4.6% faster month-over-month and is 160% slower than the same time last year.  Note; a “balanced market” is approximately 5-7 months supply.

  • The MSI in the luxury market ($1.5M+) dropped from 10 MSI to just over 7 MSI month-over-month.

  • Median Days to Contract has increased from 32 to 38, an 18.8% jump month-over-month, and 375% leap year-over-year. However… let’s take a look over the last several years… As noted in previous market reports, the Median Days to Contract is still WELL below the peaks of  2016, 2018, & 2019.

  • The side-by-side graphs above show the changes across all price points for the Median Days to Contract.

  • New Pending Sales decrease about 20% from August to September 2022.  There are also about 30% fewer New Pending Sales compared to last year.

  • 11.5% fewer New Listings hit the market in September 2022 compared to August 2022.  We also saw a 23.4% decline in New Listings compared to last year.

OTHER INTERESTING STATS TO KEEP AN EYE ON:

  • The % of Cash Purchases has dropped 10.3% month-over-month for all single family sales in Reno-Sparks and are 4.4% higher than last year22.8% of all sales in September 2022 were cash.

  • As a result of fatigue and frustration, Sellers have been pulling their homes from the market and/or allowing their listings to expire at the end of their listing period.  We have seen a 148.6% increase in Unsold Listings compared to September 2021.  

  • The number of Active Listings at the end of the month dropped slightly (down 3%) from August to September 2022.  The number of Active Listings at the end of the month is 101% higher than in September 2021 when inventory was at an all-time low.

  • 14% of all sales during September 2022 resulted in closing with prices above list price.  This stat has dropped 7.4% month-over-month and about 70% year-over-year, but is in line with normal activity compared to “pre-COVID” market conditions.

SUMMARY:

    • I have been describing the real estate market as “sloppy” at the moment.  While Sellers become more accustomed to potentially longer listing periods before receiving an acceptable offer, many Buyers have become hesitant about their purchases, with higher mortgage rates in play and fear that the market will continue to drop after they purchase.
    • Fear not!  The rapid appreciation experienced during the first 2 years of the pandemic appears to have ceased, but the market is not dead, the basic principles of supply and demand will still be at play in the long-run.
    • At the moment, the reality is that the housing inventory is still low and the rate of sales at 2.9 Months Supply of Inventory means for most price points, and so the market is still not considered “balanced.” It is technically considered to be a “Seller’s Market.”
    • More important than ever… Sellers must not over-price their properties when listing them for sale. Overpriced properties tend to sit longer and lose more value in the long-run due to the need for eventual significant price drops. Maintenance and proper preparation & staging are critical for successful sales as well.
    • And for Buyers… now is the time to exercise the option for Sellers to provide incentives to you that leverage your home-buying power and actually LOWER your monthly payment. Contact me today so I can explain how to accomplish this!

Do you need expert guidance for your next real estate purchase or sale?  As a Buyer, you have more negotiating power than you have in many years, so this may be the time to leverage your next purchase.  Sellers… Let’s meet to strategize about how to professionally prepare and price your property strategically in our marketplace.  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.

 

 

Reno-Sparks Market Report September 11, 2022

September 2022 Market Report

** Data in this the September 2022 Market Report reflect market activity from AUGUST 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.

  • The Median Sales Price (MSP) in Reno-Sparks dropped slightly for the third consecutive month, down 1.5% from $574,510 to $565,686. However, the MSP is still 6.7% higher than in August 2021.

  • While the Median Sales Price (MSP) in Reno ticked up 0.7% month-over-month, the MSP in Sparks fell 4.1% to $524,901 compared to last month.  The MSI is still 8.4% and 5.6% higher respectively compared to August last year.

  • Closed Sales inched up about 2% compared to July 2022 and are down 22.2% compared to August last year. 

  • Median Sold Price per Square Foot was $311/SF, down 2.8% compared to July 2022 and up 3.3% compared to last year.

  •  The Months Supply of Inventory is the number of months it would take to sell through the available inventory at the current rate of sales.  Though the Months Supply of Inventory (MSI) shifted from 0.8 MSI to 3.2 MSI over the last several months, August’s MSI was nearly 10% lower that July’s MSI.  During August of 2021, the MSI was 0.8 MSI representing a market that was a 180% higher rate of sales compared to August 2022.  Bear in mind, that a true “balanced market” is approximately 5-7 months supply, so though the market has shifted toward a “Seller’s Market,” we are still not at a fully balanced market.

  • As observed in the chart above, the faster pace of the $200k to $999k price ranges explains how the Months Supply of Inventory has hovered at about 3 MSI despite thte MSI in the Luxury Market leaping to over 10 MSI.

  • Median Days to Contract has increased from 25 to 32, a 28% increase month-over-month, and a whopping 433.3% increase year-over-year. However… let’s take a look over the last several years… The median Days to Contract is still WELL below the peaks of 2013, 2016, 2018, & 2019.

  • The Luxury Market showed properties taking about 62 days from listing to receiving an acceptable offer.  This is approximately double the Median of all price points and likely the reason that we saw a 28% increase month-over-month and a 433.3% increase in Days to Contract year-over-year.

  • New Pending Sales increased 29.2% from July to August 2022.  There are 13% fewer New Pending Sales compared to last year.

  • 15.8% fewer New Listings hit the market in August 2022 compared to July 2022.  We saw a 20.2% decline in New Listings compared to last year as well.

OTHER INTERESTING STATS TO KEEP AN EYE ON:

  • Keeping an eye on the distressed sale market, at this point, we are still NOT seeing that recent market activity is causing more properties to be sold as foreclosures.  Short-sales are few and far between due to the great amount of equity many home owners currently have in their properties.

  • The % of Cash Purchases has increased 3.6% month-over-month for all single family sales in Reno-Sparks and are 2.5% higher than last year. 26.1% of all sales in August 2022 were cash.

  • August 2022 saw 32.3% more Withdrawn and Expired Listings compared to the previous month, and a staggering 203.4% more compared to August last year. This is an indication that many Sellers are fatigued and frustrated with not receiving an acceptable offer during their listing period.

  • With Pending Sales jumping up in August, we naturally experienced a slight decrease in the number of Active Listings, posting 8.1% fewer compared to July 2022.  The active inventory was 117.4% higher than August 2021.

  • 15.6% of all sales during August 2022 resulted in closing prices above list price.  Historically, statistic is actually more normal compared to the market madness and overbidding we experienced during the first 2 years of the COVID-19 pandemic.

SUMMARY:

    • Over the last several months, the real estate market globally has shifted, with more days to contract, price reductions and cash incentives for Buyers.
    • The rapid appreciation experienced during the first 2 years of the pandemic appears to have ceased, but the market is not dead.
    • On the bright side, Buyers have more opportunities to place offers with little to no competition and potentially receive cash from Sellers to exercise as credits toward closing costs or mortgage rate buy-downs.
    • Mortgages rates have popped back up to around 6% for qualified buyers.  Though this does seem high compared to the historic low rates in 2020 and 2021, Buyers can be thankful that rates are not 18.63%, the peak back in 1981.  It could be much worse!
    • More important than ever, Sellers must not over-price their properties when listing them for sale. Overpriced properties tend to sit longer and lose more value in the long-run due to the need for eventual significant price drops. Maintenance and proper preparation & staging are critical for successful sales as well.

Do you need expert guidance for your next real estate purchase or sale?  As a Buyer, you have more negotiating power than you have in many years, so this may be the time to leverage your next purchase.  Sellers… Let’s meet to strategize about how to professionally prepare and price your property strategically in our marketplace.  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.

 

 

Reno-Sparks Market Report July 13, 2022

July 2022 Market Report

** Data in this the July Market Report reflect market activity from JUNE 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 (MSP) in Reno-Sparks dropped slightly, down 2.4% from $615,000 to $600,000. The MSP is also 13% higher than in June 2021.

  • While the Median Sales Price (MSP) in Reno inches up 0.8% to $635,000, the MSP in Sparks dipped 3.3% to $551,000 in June 2022.  The MSI is still 15.5% and 14.6% higher respectively compared to June last year.

  • Closed sales are down 14.2% compared to May 2022 and down 30.3% compared to June 2021.  We strongly suspect that the drop in volume is attributed to recently raised interest rates burdening potential buyers.

  • The graph above illustrates the breakdown of Closed Sales by price in Reno & Sparks combined during June 2022.

  • Month-over-month, the Sold Price per Square Foot took a dip 2.7% month-over-month and is 12.8% higher than June last year.  The drop from May to June appears to be the largest decrease month-over-month in recent years.

  • The graph above shows the Median Sold Price per Square Foot by Price Range.

  • Patience, patience, patience… Sellers over the last few months have experienced slow-down in the rate of sales, also measured by “Months Supply of Inventory (MSI).” MSI shifted from 0.8 MSI to 1.2 MSI to 1.5 MSI and now 2.6 MSI over the last few months.  Month-over-month, the MSI increase by 61.2% and year-over-year it increased 331%.  Though this does appear to be a jaw-dropping statistic, do realize how artificially fast the rate of sales was during the last 2 1/2 yeas (the “COVID MARKET”).  A “balanced market” is approximately 5-7 months supply.

  • As seen in the chart above, the Months Supply of Inventory is are inching up toward the balanced market in the lowest and highest price ranges.

  • Naturally, with the rate of sales declining (as seen in the MSI numbers), the median Days to Contract is a contributing factor of that slow-down we are experiencing.  The median number of days to contract for sale has increased from 6 to 15, a 150% jump month-over-month, and 5 to 15, a 200% climb year-over-year.

  • The graph above illustrates the breakdown of median Days to Contract by price range.

  • New Pending Sales dropped 9.5% from May to June 2022.  There are 29.4% fewer New Pending Sales compared to last year.

  • As Sellers are realizing that our market has begun to shift, many are finding that now is “the time” to get out from under it.

OTHER INTERESTING STATS TO KEEP AN EYE ON:

  • Keeping an eye on the distressed sale market, at this point, we are NOT seeing that recent market activity is causing more properties to be sold as foreclosures.  Short-sales are few and far between due to the great amount of equity many home owners currently have in their properties.

  • The % of Cash Purchases in June 2022 has increase to 27.1% for all single family sales in Reno-Sparks.

SUMMARY:

    • At $600,000, The Median Sales Price (MSP) in Reno-Sparks, NV, decreased 2.4% month-over-month and is 13.2% higher year-over-year.  While the MSP was relatively flat in Reno, the Sparks, MSI decreased 3.3% since May 2022.
    • And while New Pending Sales declined in June 2022, New Listings increased.  These two factors, combined with the an increase in Days to Contract, indicate the real slowdown that our Reno-Sparks real estate market is feeling.
    • Inflation and rising mortgage interest rates appear to have been leading causes for sales to slow significantly (compared to during the rapid “COVID Market.”)  However, is this the correction in our market that we needed?
    • Interest rates are expected to sharply increase againWashington Post reports, “The Federal Reserve Board, as many of you know, is widely expected to announce later this month that it’s raising interest rates by three-quarters of a percent. That would be the second such increase in two months — and 1.5 percent over two months is a very, very big deal by Fed standards.
    • How will another jack in interest rates affect the local and national real estate markets?  Time will tell…

Do you need expert guidance for your next real estate purchase or sale?  As a Buyer, you have more negotiating power than you have in many years, so this may be the time to leverage your next purchase.  Sellers… Let’s meet to strategize about how to price your property strategically in our marketplace and present it professionally.  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.

Reno-Sparks Market Report June 18, 2022

June 2022 Market Report

** Data in this the June Market Report reflect market activity from MAY 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 ticked up again another 3.4% from $595,000 to $615,000. This also represents a 23% increase since May 2021. These stats are nearly identical from the previous last TWO months’ market report.

  • While the Median Sales Price (MSP) in Reno was unchanged month-over-month at $630,000, the MSP in Sparks increased 3.6% and was $570,000 in May 2022.  Compared to the same time last year, the MSP increased 14.5% and 25.7% in Reno and Sparks respectively.

  • The number of single family homes that sold in Reno-Sparks during the month of May 2022 is just 5% fewer than last year, and has increased 4.4% since April 2022.

  • The above graph illustrates the breakdown of single family homes that sold by price-point.  Only 23 units sold for under $400k.

  • The Sold Price per Square Foot, bumped up again about 1.8% month-over-month and has jumped 18% year-over-year.

  • The graph above shows the Median Sold Price per Square Foot by Price Range.  As usual, properties that sold for more than $1.5M had a the highest Median Sale Price per Square Foot at $468/SF.

  • Months Supply of Inventory (MSI), a calculation of the rate of sales, moved from 0.8 MSI to 1.2 MSI to 1.5 MSI over the last few months.  Month-over-month, the MSI increase by 23% and year-over-year it increased by about 120%.  The current MSI indicates that if sales continue at the same pace they kept during April of 2022, and no new listing are added to the market, the inventory of single family homes would be “sold out” in approximately 1 month.  A “balanced market” is approximately 5-6 MONTHS supply, so although we are starting to see a slowing in the rate of sales, we still have ground to cover to get to that balanced market. Of all the numbers to watch, MSI is one of the most important indicator for market shifts.

  • The Months Supply of Inventory observed by Price Range was around 3 months supply for homes that sold under $300k) and for homes in the luxury market that sold over $1.5 Million).

  • The median days from Listing to Accepted Offer (Days to Contract) bumped up 16.7% from 6 to 7 month-over-month, and up 40% year-over-year.

  • The graph above illustrates the homes selling under $750 still moved relatively quickly during May 2022.

  • New Pending Sales increased in May 2022 dropped minimally from 506 to 490,  3.2% a decrease since April 2022.  There are 18.7% fewer new contracts compared to last year.

  • At 735, the # of New Listings was relatively flat month-over-month, but is 18.4% higher than the same time last year.

SUMMARY:

    • At $615,000, The Median Sales Price in Reno-Sparks, NV, increased 3.4% month-over-month and jumped 23% year-over-year. 
    • New Pending Sales and New Listings were relatively flat compared to March-April.  Usually, the trend of New Pending Sales and New Listings increases through the Spring. The market has begun to show signs of slowing.
    • Inflation and  rising mortgage interest rates appear to be the leading factors for causing many Buyers these days to think twice about making a purchase at this time.  Inventory is not moving as quickly has it has in recent months and years.
    • Economic strain, inflation, high gas-prices, insane taxes and a higher cost of living is still causing many Californians to continue to move from the Golden State in search for relieved on their wallets. Reno-Sparks’ close proximity to California and favorable tax climate continues put Nevada in a unique position compared to the rest of the US.
    • Our real estate market in Northern Nevada is slowing, but not dead,  So while it is taking a little longer to accept an offer, the prices have not been impacted at this time.
    • Also, do keep in mind that a balanced market is 5-6 Months Supply of Inventory (MSI), and in May 2022, the MSI was 1.5 MSI, so we are a ways off from that balanced market environment.

Do you need expert guidance for your next real estate purchase or sale?  I have had great success with helping my Buyers navigate the ever changing 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 dhallerbach@intero.com 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.

Reno-Sparks Market Report May 18, 2022

May 2022 Market Report

** Data in this report reflect market activity from APRIL 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 again another 3.5% from $575,000 to $595,000. This also represents a 20.6% increase since April 2021. These stats are nearly identical from last month’s market report.

   

  • The gap between the Median Sales Price (MSP) in Reno and the MSP in Sparks is $80,000, with the MSP in Reno sitting at $630k and the MSP in Sparks holding steady at $550k during April 2022.

  • The number of Closed Sales dipped insignificantly (3.2%) month-over-month.  17% fewer single-family homes sold in Reno-Sparks in April 2022 compared to the same month last year.

  • The above graph illustrates the breakdown of single family homes that sold by price-point.  Only 24 units sold for under $400k and 21 properties sold for over $1.5M during April 2022.

  • The Sold Price per Square Foot, ticked up again about 2% month-over-month and has leaped 21% year-over-year.

  • The graph above shows the Median Sold Price per Square Foot by Price Range.  As usual, properties that sold for more than $1.5M had a the highest Median Sold Price per Square Foot at $483/SF.

  • Months Supply of Inventory (MSI), a calculation of the rate of sales, moved from 0.8 MSI to 1.1% since March 2022, representing a 48% increase month-over-month and nearly a 77% increase year-over-year.  The current MSI indicates that if sales continue at the same pace they kept during April of 2022, and no new listing are added to the market, the inventory of single family homes would be “sold out” in approximately 1 month.  A “balanced market” is approximately 5-6 MONTHS supply, so although we are starting to see a slowing in the rate of sales, we still have ground to cover to get to that balanced market. The Months Supply of Inventory is a good indicator for monitoring market shifts in the real estate market.  Are we starting to see that shift?  Let’s see what happens in the coming months…

  • The Months Supply of Inventory observed by Price Range was around 3 months supply for homes that sold under $300k) and for homes in the luxury market that sold over $1.5 Million).

  • The graph above illustrates the slower moving luxury market, homes priced over $1.5 Million with Median Days to Contract (listing to accepted offer) at 28 days. The $500k to $599k range received acceptable offers the quickest at 5 days.

  • New Pending Sales increased in April 2022 from 481 to 531 units, a 10.4% increase since March 2022.  However, there are 6.2% fewer New Pending Sales in April 2022 compared to one year ago.

  • The bulk of our inventory transitioning from Active to Under Contract/Pending status, for the last few years, has been in the $400k to $749 ranges.  In April 2022, the $750k to $999k properties appear to be gaining traction.

  • The # of New Listings also continues to trend upward, with 734 single family homes that came to market in April 2022.  April 2022’s # of New Listings increased 23% compared to March 2022, and has also increased 10.7% year-over-year.

SUMMARY:

    • At $595,000, The Median Sales Price in Reno-Sparks, NV, increased 3.5% month-over-month and jumped 20.6% year-over-year. 
    • New Pending Sales and New Listings continue to trend upward.  As we experienced last month, this increase in new contracts and listings falls in line with the normal spring selling season. However, New Pending Sales are DOWN compared to last year, which may indicated the beginning of the market “slow down” many experts and real estate professionals have been predicting.
    • With inflation on the rise, mortgage interest rates are subsequently increasing as well, causing many Buyers these days to think twice about making a purchase at this time.  Inventory is not moving as quickly has it has in recent months and years.
    • However, in an overheated housing market like today’s, high inflation and rising interest rates “may not be all bad,” according to George Ratiu, senior economist for Realtor.com. “As I’m seeing prices adjust already in response to higher rates, higher inflation and new supply, it tells me the market actually seems to be moving toward normalization without a bubble-like bursting,” Ratiu says. (www.money.com – “Bubble or No Bubble? What History Tells Us About the Likelihood of a Housing Crash This Year.”)
    • Keep in mind that a balanced market is 5-6 Months Supply of Inventory (MSI), and in April 2022, the MSI was 1.1 MSI, so we are a ways off from that balanced market environment.

Do you need expert guidance for your next real estate purchase or sale?  I have had great success with helping my Buyers navigate the ever changing 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 dhallerbach@intero.com 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.

Reno-Sparks Market Report October 1, 2021

September 2021 Market Report

** Data in this report reflect market activity from AUGUST 2021 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.

  • The Median Sales Price in Reno-Sparks ticked up just 1% from July to August 2021.  The Median Sales Price, at $530,000, is 20% higher than the same time last year and 46% higher than the beginning of 2019.  The Median Sales Price sits at the very middle of a data set, with exactly half of the houses priced for less and half priced for more.  Will we continue to see a leveling off Median Sale Price as we move into winter? Stay tuned!

  • 552 Single Family Homes sold in August 2021, a 14% decrease from July 2021 and a 16% decrease year-over-year.

  • The Luxury Market enjoyed the highest Sold Price per Square Foot again in August 2021, with an average of $515/SF in the $1.5M+ price range. The $200k to $299k price range saw the lowest Sold Price per Square Foot at $174.

  • The Average Sold Price per Square Foot over all price ranges increased in August 2021 to $316/SF, a 5% rise month-over-month and a 33% boost year-over-year.

  • The Months Supply of Inventory (MSI) in August 2021 was .90 MSI.  This means that if the rate of sales in August continued at the same pace through that month, the entire inventory of single family homes would be “sold out” in just under one month.  A balanced market is approximately 5-6 months supply.  We are still very much a “Seller’s Market.”

  • All price points continue to sell at a rate well-below the balanced market of 5-6 Months Supply of Inventory.  Again… this is defined as a “Seller’s Market” still.  Typically the luxury market does sell at a slower rate, and so continues to sell at at rate of 2.9 Months Supply of Inventory.

  • It took an average of 16 days from publicly Listing to Acceptance of Offers over all price points.  Home are going under contract to sell 50% faster than the during the same time last year, and 78% faster than January of 2019.  It’s amazing to see how the market has changed over the last few years!

  • The graph above shows the change from July to August in the Average Days to Contract for each price point.

  • Compared to January 2019, the # of New Contracts (homes with accepted offers) was 55% higher in August 2021.  Number of New Contracts was also 12.5% higher compared to July 2021.

  • In August 2021 4.4% more single family homes came to market than the same time last year. and 2.3% fewer New Listings compared to July 2021.

SUMMARY:

  • What is the market looking like now as we are headed into fall and winter?
    • The Median Sales Price is holding steady at $530,000 in Reno and Sparks combined.
    • Number of units sold has dropped, but this a typical market observance as we move toward the winter months.
    • The rate of accepted offers and sales continues to favor most Sellers.
    • Typically at end of summer, heading in winter, of listing of homes begin to decline. Though we did see a 2.3% drop in New Listings in August, the count is still up compared to last year and compared to Jan 2019.
  • Where is this market headed?
    • Inventory and Buyer demand drive every real estate market.
    • While Buyers from CA and other states look to move out of those states and into NV, and while inventory is still low, the Reno-Sparks market appears to be stable at this time.
    • As long as we continue to see new Nevadas moving into Nevada, and we don’t see a flood of inventory, we may realize continued appreciation.  Obviously, there are no concrete guarantees, so we will need to keep a watchful eye on supply and demand in the coming months heading into 2022.
  • What are YOUR real estate needs? If you need to buy and/or sell, I’m here to guide you through every step of the way. Sell your current home while purchasing your next home?  My clients have experienced great success at doing  just this with the plans we have implemented!!  Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682 so we can discuss the best plan for YOU!  Thank you, ~Denise Hallerbach, Broker-Owner, INTERO RENO.
Reno-Sparks Market Report July 14, 2021

July 2021 Market Report

** Data in this report reflect market activity from JUNE 2021 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.

  • The Median Sales Price in Reno-Sparks surpassed the $1/2 Million mark in May and was pushed to $530,000 in June 2021, a 5.7 % increase month-over-month and a 30% increase year-over-year. The Median Sales Price sits at the very middle of a data set, with exactly half of the houses priced for less and half priced for more.

  • Taking a step back, we see the eye-popping appreciating over time with the Median Sales Price soaring well over $500k now in Reno-Sparks combined.

  • 633 single family homes sold in June 2021,  a 17 % increase from May 2021 and a 12% increase from June 2020.

  • During June 2021, more homes sold in the $400k to $500k price range than in any other price range by a significant amount, attributing to 29% of the market share, a trend we have been seeing over the last several months.

  • The steady rise in the Average Sold Price per Square Foot continues and now sits at $306/square foot across all price ranges.

  • The Months Supply of Inventory (MSI) in June 2021 is 1/2 MSI.  This means that what little active inventory we have would “sell out” in only 2 weeks if sales continue at the current rate.  June 2021’s MSI is a 66% lower than the same time last year.  A balanced market is approximately 5-6 months supply.

  • All price points are still well below the balanced market of 5-6 months supply of inventory.

  • Low inventory and high demand continued to keep Buyers in a competitive environment during the month of June 2021.  Over all price-points, the average Percentage of List Price Received in June 2021 was 103.7%!!

  • June 2021 saw a set of properties, likely overpriced, that spent a longer period of time on market before receiving an acceptable offer. We also noticed a few price ranges with longer days on market than the rest of the inventory. These properties pushed the average Number of Days from Listing to Contract, from 13 in May to to 28 in June.  That is a massive jump!  Check out the graph below for the breakdown at each price-point.

  • Here is the breakdown by price-range for the Average Number of Days from Listing to Contract.

  • The Number of New Contracts held fairly steady in June 2021 with 607 single family homes going into contract.  16.4% fewer homes went into contract than this same time last year.

  • June 2021 saw 5.3% more single family homes come to market than the the previous month, and 7.2% fewer New Listings compared to June 2020.

SUMMARY:

  • Though inventory is still extremely low in Reno-Sparks, we have started to feel a bit of a slowing in market over the last few weeks.  Seeing that the average Days on Market from listing to contract has stretched from 13 days in May to 28  days in June 2021, there may be a few contributing factors at play.
    • Many Buyers report that they have retreated from the market due to prices increasing beyond their affordability.
    • Buyers are vacationing after 1 1/2 years of pent up travel demand due to the pandemic.  Purchasing a home does not appear to be a top priority at this time for many.
    • Some overzealous Sellers appear to be pricing their homes higher than market value… a turn-off for many Buyers. Overpriced homes tend to spend more days on market and ultimately often sell after a price adjustment is made.
  • Median Sales Price and Sold Price per Square Foot have both increased again, to $530,000 and $306/sqft respectively.
  • With continued threats of mortgage interest rates rising later this year, rates for qualified borrowers has remained low (under 3%) for 6 of the last 7 weeks.
  • What are YOUR real estate needs? If you need to buy and/or sell, I’m here to guide you through every step of the way. Sell your current home while purchasing your next home?  My clients have experienced great success at doing  just this with the plans we have implemented!!  Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682 so we can discuss the best plan for YOU!  Thank you, ~Denise Hallerbach, Broker-Owner, INTERO RENO.
Reno-Sparks Market Report June 10, 2021

June 2021 Market Report

** Data in this report reflect market activity from MAY 2021 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.

  • May 2021’s Median Sales Price in Reno-Sparks has breached the $1/2 Million mark, now at $502,000.  This represents another slight increase of 1.5% month-over-month, and a 25.5% increase year-over year and is a major milestone in market history. The Median Sales Price sits at the very middle of a data set, with exactly half of the houses priced for less and half priced for more.

  • 535 single family homes sold in May 2021.  This represents about an 8% decrease compared to April 2021 and a 32.4% increase compared to May last year.

  • The chart above illustrates a shift in volume of single family homes sold in Reno-Sparks.  As seen over the last few months, this shift has taken place with the number of units sold from the $300k-$400k range, and into the $400k-$500k range.  We are seeing that the homes our buyers were searching for last year in the $300k-$400k range, are now priced and selling in the $400k-$500k range.  This is causing these buyers to lower their standards in the homes they are able to purchase OR become creative in their structuring of their loan (for example, lowering their down payment and exercising private mortgage insurance).

  • Once again, the Average Sold Price per Square Feet continues to tick up!  Over all price-points, the single family homes in Reno-Sparks are selling for an average of $295/sqft.

  • Please refer to the chart above for a breakdown of the Average Sold Price per Square Foot by Price Range in March and May 2021.  Sold Price per Square Foot has increased in 7 of 8 price-ranges over the last few months.

  • The Months Supply of Inventory (MSI) in May 2021 sits at 0.6 MSI.  May 2021’s MSI is a 75.6% lower than in May 2020. This means that what little active inventory we have would “sell out” in only 3 weeks if sales continue at the current rate.  A balanced market is more like 5-6 months supply.

  • Observe the chart above, the Months Supply of Inventory (MSI) by Price.  With all price levels well-below the balanced market of 5-6 months, Buyers are continue to find themselves in multiple offer situations, resulting in overbidding to secure their home.

  • Just what effect has our low inventory had on the playing field of real estate? Over all price-points, the average Percentage of List Price Received in May 2021 was 103.6%!!  Remember, this is an average!!  I personally sold a home in Sparks last month that sold 109.4% over appraised value!

  • The graph above shows the recent spike in % of List Price Received.  Indeed, it has been an extremely competitive market here in Reno-Sparks over the last several months.

  • The average Number of Days, Listing to Contract, over all price points in May 2021 was only 14!  Check out the graph below for the breakdown at each price-point.

  • Here is the breakdown by price-point over the last few months for the Average Number of Days from Listing to Contract.  The quick-moving market does not appear to discriminate against home value or pricing.

  • 606 single family homes when into contract in May 2021, up 7.6% month-over-month and up 12% year-over-year.

  • May 2021 saw 9% fewer New Listings come to market than the previous month, and 5% fewer New Listings compared to May 2020.

SUMMARY:

  • In general, the real estate market in Reno-Sparks, Nevada continues to move at rapid pace.
  • Sellers enjoy a market with multiple offers that are over asking price, and often waive or commit to some value over appraisal if an appraisal is required by the Buyer’s lender.
  • Both the Reno-Sparks Median Sales Price and the Average Sold Price per Square Foot continue to steadily climb… $502,000 and $295/sqft up 1.5% and 1.7% respectively month-over-month.
  • For the fifth consecutive week, mortgage interest rates have lingered below 3% for qualified borrowers, according to FoxBusiness.com. This appears to continue to incentivize Buyers in this highly competitive market.  However, experts predict that interest rates will edge closer to 4% later this year… Finance.yahoo.com.
  • What are YOUR real estate needs? If you need to buy and/or sell, I’m here to guide you through every step of the way. Sell your current home while purchasing your next home?  My clients have experienced great success at doing just this with the plans we have implemented!!  Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682 so we can discuss the best plan for YOU!  Thank you, ~Denise Hallerbach, Broker-Owner, INTERO RENO.

 

Reno-Sparks Market Report October 15, 2020

October 2020 Market Report

** Data in this report reflect market activity from SEPTEMBER 2020 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.

  • Median Sales Price, at $440,000 for single-family re-sale properties in Reno and Sparks held steady in September 2020, posting a mere 1% dip compared to August 2020, and has shown an increase of 11% year-over-year. 

  • The Average Sold Price per Square Foot continues its upward trend we have been experiencing over the last several months.  Single-family residences sold in Reno-Sparks in September 2020 sold for an average of $249/sqft, a 5% increase month-over-month and an 10% increase year-over-year.

  • Though the Average Sold Price per Square Foot is $249/sqft, once again, homes that sold in September 2020 for over $750k appear to be pulling this average upward.  Homes that sold between $1M and $1.5M averaged $327/sqft, and homes that sold for over $1.5M averaged $439/sqft!

  • The # of Units Sold in September ticked up 4% month-over-month from 644 to 680.  The # of Units Sold is 12% higher than this same time last year.  Please note that homes closing in September likely went into contract in August 2020, accounting for a typical 30-day escrow.

  • As seen in the graph above, the bulk of homes that closed escrow in September 2020 sold between $300k & $500K.  These sales accounted for 60% of the total market share.

  • September’s Absorption Rate continued its downward trajectory and is at a new low of 0.7 Months Supply of Inventory. a staggering 71% drop year-over-year and a 25% decrease month-over-month.  MSI absorption rate represents the time it would take to “sell out” of the Reno-Sparks inventory at the current rate of sale if no new listings were added to the market.  A balanced market is around 5-6 months of supply, therefore, this is a profoundly “seller’s market.”

  • As just mentioned, a “Balanced Market” sees about 5-6 months of inventory.  Even the high-end luxury market is realizing only 3.5 Months Supply of Inventory, and is very much a “Seller’s Market” as well, while the $300k-$500k inventory is less than 1/2 a month of supply!

  • The # of Days from Listing to Contract since the COVID 19 economic shut-down in March has averaged 36 days.  In September 2020 the overall average Days to Contract followed this trend.  Single family residences are taking about 30% less time to receive and acceptable offer this year than in September 2019.  These averages account for all price ranges.

  • While homes priced $300k-$400k received an accepted offer an average of only 16 days from listing, the upper price points of $$1M+ did take an average of a few months to accept an offer.

  • Over the last 4 months, the # of New Contracts has lingered around 720 per month.  During the month of September 2020 we saw 34% more new contracts than the same month last year and 8% fewer new contracts than the previous month.

  • The # of New Listings to hit the market dropped 8% month-over-month, while decreasing 10% compared to September 2019.

SUMMARY:

  • So why are folks moving to Northern Nevada?  They have recently found that they can work from anywhere… They are moving here for the jobs that are being created here… Their companies are moving them here.  They are purchasing their retirement homes (both ahead of and after their retirement date)… They loathe the tax burdens of our neighboring state… They are threatened by wildfires and/or have devastatingly lost their home because of them.  Pick your reason… the mass influx of new Northern Nevadans is real.
  • While the Median Sale Price in Reno-Sparks is holding steady, so too are low interest rates.  Sub-3% interest rates for many qualified buyers may be keeping those buyers in the market.
  • The combination of historically low 0.7 Months Supply of Inventory and high buyer demand continue to add fuel to the very hot residential real estate market today.
  • The Average Sold Price per Square Foot continues is upward trend, and appears to be driven by the high-end luxury market.
  • Average days from listing to contract remains low at 36 days.
  • The # of New Contracts in September 2020 continue to rise.
  • If you are considering selling your home to upsize, downsize or relocate, I am here to assist you with experienced, professional services to make your transition as smooth as possible.  Email direct dhallerbach@intero.com or reach me by cell at 775-233-0682.  I am so happy to help!
  • Buying a home in Northern Nevada?  Whether it’s your first home, second or third, vacation home or investment property, I have the knowledge and highest level of skill to navigate you through the process.  Call me at 775-233-0682.
In-The-Know Real Estate Blog September 10, 2020

How Will the Presidential Election Impact Real Estate?

The year 2020 will be remembered as one of the most challenging times of our lives. A worldwide pandemic, a recession causing historic unemployment, and a level of social unrest perhaps never seen before have all changed the way we live. Only the real estate market seems to be unaffected, as a new forecast projects there may be more homes purchased this year than last year.

As we come to the end of this tumultuous year, we’re preparing for perhaps the most contentious presidential election of the century. Today, it’s important to look at the impact past presidential election years have had on the real estate market.

Is there a drop-off in home sales during a presidential election year?

BTIG, a research and analysis company, looked at new home sales from 1963 through 2019 in their report titled One House, Two House, Red House, Blue House. They noted that in non-presidential years, there is a -9.8% decrease in November compared to October. This is the normal seasonality of the market, with a slowdown in activity that’s usually seen in fall and winter.

However, it also revealed that in presidential election years, the typical drop increases to -15%. The report explains why:

“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty.”

Are those sales lost forever?

No. BTIG determined:

“This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”

In a separate study done by Meyers Research & Zonda, Ali Wolf, Chief Economist, agrees that those purchases are just delayed until after the election:

“History suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year.”

Will it matter who is elected?

To some degree, but not in the overall number of home sales. As mentioned above, consumer confidence plays a significant role in a family’s desire to buy a home. How may consumer confidence impact the housing market post-election? The BTIG report covered that as well:

“A change in administration might benefit trailing blue county housing dynamics. The re-election of President Trump could continue to propel red county outperformance.”

Again, overall sales should not be impacted in a significant way.

Bottom Line

If mortgage rates remain near all-time lows, the economy continues to recover, and unemployment continues to decrease, the real estate market should remain strong up to and past the election.