Reno-Sparks Market Report November 14, 2022

November 2022 Market Report

** Data in the November 2022 Market Report reflect market activity from October 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 ticked up 1.8% from $530,320 to $540,000 months-over-month. The MSP is exactly the same as October last year!

  • The Median Sales Price (MSP) in Reno and Sparks both inched up month-over-month, up 3.7% in Reno and up 0.5% in Sparks.

  • Closed Sales dropped 21.7% compared to September 2022 and are down 34.7% compared to October last year. 

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

  • Median Sold Price per Square Foot also ticked up 1% to $304/SF, and is 1.3% lower compared to 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 October 2022 was 3.4 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 3.4 months.  The MSI in October 2022 was 15.5% slower compared to September 2022 and is 212.6% slower than the same time last year.  Note; a “balanced market” is approximately 5-7 months supply.

  • Over the last few months, the Months Supply of Inventory in the luxury market has exceeded the threshold for a balanced market (see light blue range for Balanced Market), pushing the $1.5M+ properties into an official “Buyer’s Market.”

  • Median Days to Contract has remained fairly constant now at 36 days from listing to contract, a 323.5% increase year-over-year. While the market feels very slow compared to the rapid moving COVID-19 years (2020-2021) our Median Days to Contract are still WELL below the peaks of  2012, 2016, 2018, & 2019.

  • The side-by-side graphs above show the changes across all price points for the Median Days to Contract.  All homes priced under $1.5M were on the market less than 40 days

  • New Pending Sales dipped 2.4%% from September to October 2022.  There are also about 40% fewer New Pending Sales compared to last year.  Again, look back over the last several years to realize that our market is now for pending sales is behaving fairly normally.

  • 23% fewer New Listings hit the market in October 2022 compared to September 2022.  We also saw a 32% decline in New Listings compared to last year.

OTHER INTERESTING STATS TO KEEP AN EYE ON:

  • 22.6% of all sales in Reno-Sparks were cash transactions. The % of Cash Purchases increased 22.3% month-over-month for all single family sales in Reno-Sparks and are is relatively unchanged compared to October 2021. 

  • Sellers continue to show signs of frustration as homes have not been selling as quickly as they have over the last couple of years.  Consequently, they many 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 185% increase in Unsold Listings compared to the same time last year.  

  • The number of Active Listings at the end of the month dropped 9.5% from September to October 2022.  The number of Active Listings at the end of the month is 104% higher than in October 2021 when inventory was near an all-time low.

  • 14% of all sales during October 2022 resulted in closing with prices above list price.  This stat is relatively unchanged compared to September 2022 and about 64% lower compared to October last year but is in line with normal activity compared to “pre-COVID” market conditions.

SUMMARY:

    • As we head into the winter months, Buyers and Sellers are contemplating moves in a real estate market riddled with the fear of God repeatedly thrown at them from the media with low-inventory in a high interest rate climate, price reductions, potential for further drops in prices… How are Buyers are Sellers to move forward with greater confidence in the coming months and years?
    • Compared to the last couple of years, the market is not as bleak as the media would have us believe.  Looking back at the charts over the last several years, the real estate market in Reno-Sparks NOW looks remarkably similar to past years’ activities and trends. 
    • Go back to basicsIt’s about supply and demand.  Inventory has NOT skyrocketed during this very interesting time, and Buyers are STILL making moves to pick up properties here, especially in markets priced under $1.5M. When priced competitively, homes on the market now in Reno-Sparks ARE SELLING.  
    • Sellers… The winter months are not necessarily a bad time to list your home.  Historically, Buyers and Sellers are more willing to get the deal done because the parties are highly motivated during this season.  During winter you’ll enjoy less competition from competing Sellers in your neighborhood.
    • Now more than ever, maintenance and proper preparation & staging are critical for successful sales.  So if you are waiting until spring to hit the market, take advantage of the winter months to get your house great shape.
    • And Buyers… You may likely have more negotiating power than during the last couple of years.  As mentioned in last month’s report, now is the time to exercise the option for Sellers to provide incentives 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?  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 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 March 18, 2022

March 2022 Market Report

** Data in this report reflect market activity from FEBRUARY 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.

  • At $560,000, the Median Sales Price in Reno-Sparks combined appears to be stable in February 2022, with only a 2% decrease month-over-month. This also represents a 24% increase since February last year.  As we look back over the winter months during the last couple of years, the market has a history of flattening during this time frame compared to late spring and summer.

  • Number of Sold Units dipped again 7.5% from 402 to 372 month-over-month.  Units Sold were down just 4% compared to February 2021.  As seen later in this report however, with new contracts and listings on the rise, we should start to see the volume of sales increasing the the coming months.

  • The toal number of homes that sold for under $400,000 dropped from 32 to 27 month-over-month.

  • The Average Sold Price per Square Foot ticked up from $301/SF in January to $315/SF in February 2022.  The Average Sold Price per Square foot is 22% higher than it was 1 year ago and 49% higher than 2 years ago.

  • The shape of the above graph is a typical representation of the Sold Price per Square Foot by Price.  In the luxury market, homes priced over $1.5 million carried a significantly higher $/SF average than all other price points.  This is a typical observation historically.

  • In February 2022, the Months Supply of Inventory (MSI), a calculation of the rate of sales,  dropped slightly from 0.7 to 0.6 MSI.  At 0.6 MSI, the rate of sales was 22.4% faster than last year.  The current MSI indicates that if sales continue at the same pace they kept during February 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 Median Days to Contract over ALL price points during February 2022 was only 5 days.  Single family homes in Reno-Sparks went into contract 28.6% faster in February 2022 compared to January 2022 and 62% faster compared to February 2020!

  • The graph above shows the Median # of Days to Contract by Price.  While it usually takes a bit longer to secure an accepted offer for homes listed over $1 million, the rest of the market is moving extremely quickly, averaging 4.5 days.  That being said, the Median # of Days to Contract in the $1 million+ price points is still very fast-paced for the luxury market.

  • We are experiencing normal sale patterns as we climb out of the recent holidays and winter months, and move into the “spring sales season.”  The # of New Contracts in February 2022 (homes with accepted offers) increased again 8.4% month-over-month and also increased 16.3% compared to February 2021.

  • As usual, the bulk of New Contracts in the Reno-Sparks market continues to lie in the $400,000 to $750,000 price ranges.  However, the number of new contracts over time has been shifting to higher price points, and the $750,000 to $1 Million price range appears to be gaining momentum. 

  • The # of New Listings continues to increase as we head towards spring.  February 2022’s # of New Listings increased 13% compared to January 2022.  As seen in the circled portions of the chart above, this year’s activity mirrors the activity that took place last year.

SUMMARY:

    • The Median Sales Price is fairly holding steady, dropping 2% month-over-month.  The median is up 24% compared to last year.
    • The count of properties sold dropped again in February 2022, but we can expect to see that stat increase in the coming months, as New Contracts and New Listings are on the rise.  Spring is nearly upon us!
    • The real estate market in Reno-Sparks continues to move at a fast pace, with an average of only 4.5 Days to Contract in the “non-luxury” price points (under $1M) and 3 Weeks Supply of Inventory over all price points.  Buyers should continue to see a competitive, multiple-offer market for the foreseeable future, as long as the inventory remains low and buyer activity stays high.  It’s all about “supply and demand.”
    • The expected continued increase of New Listings in the spring and summer will hopefully alleviate some of the pressure that Buyers have been experience.  Multiple offers and competitive purchase situations have been the commonplace in the real estate market over the last couple of years.
    • Many experts suggest that rental rates will continue to rise through 2022.  Is this financially the right time for you or somebody you know to purchase instead of rent?  Visit one of my most recent blog posts, “Are You Wondering if This Is the Year to Buy a Home?” to help you decide.

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 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 February 17, 2022

February 2022 Market Report

** Data in this report reflect market activity from JANUARY 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 bumped up from $545,000 to $580,000, a 6.5% increase month-over-month and a 29% increase year-over-year.  Inventory remains extremely low in Northern Nevada and across the U.S.  Despite mortgage rates rising to over 4% in recent weeks, Buyers are still in the market and finding themselves in multiple offer situations, vying to win the contract to purchase.

  • The graph above shows the rapid appreciation experienced in Reno, without Sparks in the mix.  For the first time in history, the median sales price has breached the $500,000’s mark and has reached $600,000!

  • Though Sparks, Nevada also shows evidence of a rapidly appreciating market, Sparks lags behind Reno, with a Median Sales Price of $520,000 in January 2022.

  • As mentioned previously, mortgage rates have surpassed 4% in recent weeks and is at about 4.2% currently.  Cnet.com points to increasing inflation and a strong economy as reasons for the uptick in the rates. Is this stopping Buyers from purchasing homes now?  At the moment, rate increased do NOT seem to be decreasing impacting Buyer activity.  In fact, the rate increase, and threats of more increases through 2022 may be adding fuel to the fire and causing Buyers to scramble to lock their rates before they move any higher.  All that being said, according to the chart above, rates are still historically low.

  • January 2022 saw a major drop in the number of Units Sold.  Roughly 39% fewer single family homes sold in Reno-Sparks in January 2022 compared to December 2021.  16% fewer homes sold in January 2022 compared to the same time the previous year.

  • Only 32 homes in Reno-Sparks sold for under $400,ooo in January 2022. This observation could be one reason why we saw such a significant jump in the Median Sales Price.

  • The Average Sold Price per Square Foot dipped only 1.6% month-over month.  Are we starting to see a trend with Average Sold Price per Square Foot hovering around $300/SF over the last several months?  Let’s see what happens with this statistic as more homes are expected to be listed and sold in the coming spring/summer seasons.

  • Homes that sell for $1.5M+ make up the luxury market in Reno-Sparks.  Homes in the luxury market are selling at a Price per Square Foot that is 78% higher than the average Sold Price per Square Foot that spans the entire market.  The average Sold Price per Square Foot in January 2022 was $300.

  • in January 2022, the Months Supply of Inventory (MSI), a calculation of the rate of sales,  was unchanged compared to December 2021.  At 0.6 MSI, the rate of sales was 14% faster than last year.  The current MSI indicates that if sales continue at the same pace they kept during January 2022, and no new listing are added to the market, the entire inventory of single family homes would be “sold out” in approximately 2.5 weeks. A balanced market is approximately 5-6 MONTHS supply.

  • The Median Days to Contract over ALL price points during January 2022 was 7 days, a 53% drop compared to December 2021. 

  • The graph above shows the Average # of Days to Contract by Price.  The ONE property listed under $199,000 took 78 days to go under contract.

  • Contract execution typically begins picking up after the holidays.  And this year was no exception.  The # of New Contracts in January 2022 (homes with accepted offers) increased 22% month-over-month and also increased 10% compared to January 2021.

  • As usual, the bulk of New Contracts in the Reno-Sparks market continue to be in the $400,000 to $750,000 price ranges.

  • The activity trends for New Listings tends to follow the numbers for New Contracts when the holidays subside.  As seen in the graph above, there were 33.3% more New Listings in January 2022 compared to December 2021.  The # of New Listings were about the same as January last year.

  • January marks the month that New Listings are typically on the rise after the hustle and bustle of the holidays.  The graph above shows just this.

SUMMARY:

    • The Median Sales Price is holding steady appears to be on the rise again in Reno-Sparks, now at jumping from $545,000 to $580,000 month-over-month.
    • However, do notice that only 320 single # of Units Sold, so the Median Sales Price may be a bit skewed due to more homes in the upper price ranges selling during January 2022.
    • The real estate market in Reno-Sparks continues to move at a fast pace, with an average of only 7 Days to Contract and 2.5 Weeks Supply of Inventory.  Buyers should continue to see a competitive, multiple-offer market for the foreseeable future.
    • As predicted in last month’s market report, the # of New Listings and Contracts is on the rise now that the holidays are behind us!!  This should help a little for some frustrated Buyers out there.
    • Trying to decide to purchase a home now?  Many experts suggest that if you can afford the monthly payment on the house that you want to buy, there is no need to wait, especially since prices appear to continue to rise for the foreseeable future.
    • Interest Rates are on the rise, and many Buyers are still working to get a piece of the market before they go any higher.  This being said, the current rates (about 4.2% currently) are still historically low.

Answers to last month’s questions:

1) How will the surge in Omicron COVID-19 cases affect the real estate market?  Omicron COVID-19 does not appear to be impacting the market compared to the previous COVID-19 variants.

2) Will rising mortgage rates impact Buyer affordability as we progress through 2022?  We will have to see what the future holds, but in January 2022, the threat of higher rates may actually be pushing Buyers to lock their rates before they climb any higher.

3) If Buyers retreat from the market due to higher mortgage rates, will this result in a flattening of the market? I believe it could result in perhaps a slowing of appreciation, but not a decline, especially if our economic climate remains the same.

4) Let’s see what happens over the coming months and year!!  Indeed!

Looking for 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 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 January 17, 2022

January 2022 Market Report

** Data in this report reflect market activity from DECEMBER 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 (MSP) remained steady in December and was $545,000 in Reno-Sparks. The MSP was just 2% higher in December 2021 compared to November 2021, and 21% higher than December 2020.  As typically experienced during the winter months, inventory has stayed extremely low. Despite mortgage rates rising, Buyers are still in the market and often bidding properties over-asking when the property is priced at or near market value.

  • Though we have heard a lot lately about the expectation that Mortgage Rates will be rising in 2022, looking back over the last 3 years, even if they rise to 4% as predicted, rates would still be lower than they were three years ago.

  • 4.6% fewer single family homes sold in Reno-Sparks in December 2021 compared to November.  And 6.3% fewer homes sold in December 2021 compared the same the previous year. Roughly the same number of single family homes sold in December 2021 compared to 2 years ago.

  • The Average Sold Price per Square Foot holds at $305/SF for the second straight month.  Since December 2020, the Average Sold Price per Square Foot increased 21.5%.  However, looking at the last several months, we appear to have reached a bit of a plateau at the moment. Please note that these figures represents the average over ALL price points.

  • See chart ABOVE for the breakdown of  The Average Sold Price per Square Foot by price range. The most significant change (November 2021 to December 2021) was seen in the $1.5M+ price range ($468/SF increased to $492/SF).  Most other price points remained relatively static or dropped in December 2021.

  • Months Supply of Inventory (MSI), a calculation of the rate of sales, in December 2021 was 0.5 MSI.  compared to 0.8 MSI the previous month, a 33.3% change month-over-month.  The rate of sales was the same as it was exactly one year ago. Consider this… if the rate of sales in December 2021 continues at the same pace, and no new listing were added to the market, the entire inventory of single family homes would be “sold out” in approximately 2 weeks. A balanced market is approximately 5-6 months supply.

  • Inventory is at all time lows!!  As of January 12, 2022 at 6:45 am there were only 236 active single family residences on the market in all of Reno and Sparks, across all price-points (not including condos). Pickings are SLIM!!

 

  • The Median Days to Contract over ALL price points during December 2021 was 15 days compared to 16 days in November, a 6.3% decrease month-over-month.  The Median Days to Contract has increased 88% since December 2020.

  • The # of New Contracts (homes with accepted offers) decreased 17% month-over-month and and was about the same as December 2020.

  • The # of New Listings dropped from 376 in November to 295 in December 2021, a 39.7% decrease. The # of New Listings in December 2021 was nearly identical compared to two years ago.  We expect that New Listings will begin to increase again in January or February as seen in the graph BELOW.

SUMMARY:

    • The Median Sales Price is holding steady at $545,000 for Reno and Sparks combined.
    • # of Units Sold declined again in December 2021, which is typical during the winter months.
    • A balanced market sees 5-6 Months Supply of Inventory (MSI) and the current rate of sales is 2 Weeks Supply of Inventory… We are still looking at a Seller’s market.
    • # of New Listings may very well be at its low-point for season, as seen in the previous graph.  We typically begin to see an increase in New Listings after the 1st of the Year.  Looking forward to that happening!!
    • Interest Rates are on the rise, but not expected to travel much higher than 4% by the end of 2022.  How will this impact Buyers in today’s market?  Only time will tell!
  • Big questions for the coming months and year?

1) How will the surge in Omicron COVID-19 cases affect the real estate market?

2) Will rising mortgage rates impact Buyer affordability as we progress through 2022?

3) If Buyers retreat from the market due to higher mortgage rates, will this result in a flattening of the market?

4) Let’s see what happens over the coming months and year!!

  • Are you in need of guidance for your next real estate purchase or sale?  I am here for you.  Email direct 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 December 16, 2021

December 2021 Market Report

** Data in this report reflect market activity from NOVEMBER 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 (MSP) has remained steady in November and was $535,000 in Reno-Sparks. The MSP is 18.2%% higher than November 2020, and 33% higher than November 2019.  The steady increase in prices has been fueled by a low-inventory market and high buyer demand. The MSP sits at the very middle of a data set, with exactly half of the houses priced for less and half priced for more.

  • 6.5% fewer single family homes sold in Reno-Sparks in November 2021 compared to the previous month.  And 12.2% fewer homes sold in November 2021 compared the same month last year.  Roughly 17% more single family homes sold compared to two years ago.

  • The Average Sold Price per Square Foot is also holding fairly steady in November 2021, at $306/SF compared to $308/SF month-over-month. The Average Sold Price per Square Foot is 26.4% higher than November last year and 41% higher than two years ago.  This statistic represents the average over ALL price points.  See chart below for the breakdown of  The Average Sold Price per Square Foot by price range:

  • Months Supply of Inventory (MSI), a calculation of the rate of sales, in November 2021 was 0.8 MSI.  compared to 1.0 MSI the previous month. This means that if the rate of sales in November continues at the same pace, 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 graph to the right shows the changes of MSI by Price month-over-month.

 

 

 

 

  • The Median Days to Contract over ALL price points during November 2021 was 17 days compared to 9 days in October, showing an 89% increase month-over-month.

 

  • The graph to the right shows the Median Days from Listing to Contract over time.  Though we have seen the fast-paced market in past years (usually during the spring months), the most consistent period of rapid movement has happened since the beginning of the COVID-19 pandemic.

 

  • The graph to the right shows Days to Contract by Price Range. During November 2021, Days to Contract increased or remained constant at nearly every price point.  This is a typical observance during winter months.

 

  • The # of New Contracts (homes with accepted offers) decreased 17% month-over-month and increased 11% compared to last year.

 

 

  • The graph to the left shows the Number of New Contracts over time.  Looking back over past Novembers, we see that the # of New Contracts this year is actually a touch higher that in previous years.

 

 

  • The # of New Listings dropped from 733 in September to 606 in October 2021, a 12.6% decrease. The # of New Listings in October 2021 was nearly identical compared to last year.  Looking back over the last few years, the lowest count of New Listings brought to market is at its low every November and December.  We expect that New Listings will begin to increase again in January or February.

SUMMARY:

    • The Median Sales Price is holding steady at $535,000 for Reno and Sparks combined.
    • # of Units Sold is declining slightly through the winter months, as expected.
    • A balanced market sees 5-6 Months Supply of Inventory (MSI) and the current rate of sales is 3 Weeks Supply of Inventory.  We are still very much in a strong Sellers’ market.
    • # of New Listings is reaching its low point for the year, as seen in the previous graph.  The statistic is following its normal pattern over the years.
    • Serious buyers are plentiful, and the rate of sales at 3 weeks Supply of Inventory indicates that the market is not significantly impacted by the typical “slower” winter selling season.  In a nutshell, buyer demand continues.
  • Predictions for the coming months and year?
    • Obviously we don’t have a crystal ball, and can’t be 100% certain about what will happening in the coming months and year but here is what we are hearing from other experts in the field:
      • 1) Mortgage Interest Rates are expected to climb in 2022.  Will this news get Buyers “off the fence” to purchase now in our already LOW inventory market?
      • 2) If more Buyers get “off the fence” and purchase with very low inventory, we will likely see more multiple offer situations, and possibly purchases at or over asking price (IF the asking price is appropriate).
      • 3) If Mortgage Interest Rates rise too high, some Buyers may retreat, thus potentially causing a flattening of sales and market appreciation.
      • 4) Reno-Sparks is still perceived to be a desirable place to live and work.  Reno was ranked 12 in the U.S. for the “Best Cities for Young Professionals in 2021” as reported at the Economic Development Authority of Western Nevada website: edawn.org.
      • 4) Bottom line: We will just have to wait and see!!
  • Are you in need of guidance for your next real estate purchase or sale?  I am here for you.  Email direct 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 November 19, 2021

November 2021 Market Report

** Data in this report reflect market activity from OCTOBER 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 (MSP) in Reno-Sparks ticked up about 2% from  September to October, now at $540,000. The MSP is nearly 19% higher than October 2020, and 37% higher than October 2019.  The steady increase in prices has been fueled by a low-inventory market and high buyer demand. The MSP sits at the very middle of a data set, with exactly half of the houses priced for less and half priced for more.

  • 4.7% fewer single family homes sold in Reno-Sparks in October 2021 compared to September.  And 16.7% fewer homes sold in October 2021 compared to October 2020.  Roughly the same number of single family homes sold compared to two years ago.

  • The graph to the right illustrates the changes month-over month for Units Sold by Price Point.  The price range with the largest jump in the number of unit sold was the $400k to $499k homes… an 8% increase compared to September.

  • The Average Sold Price per Square Foot increased once again, from  $302/SF to $308/SF month-over-month. The Average Sold Price per Square Foot is 29.4% higher than October last year and 42% higher than two years ago.

  • Months Supply of Inventory (MSI) in October 2021 was 1.0 MSI.  This means that if the rate of sales in October continues at the same pace, the entire inventory of single family homes would be “sold out” in just one month.  A balanced market is approximately 5-6 months supply.

  • MSI by Price shows the change of the rate of sales most significantly decreased in the luxury market from September to October.

 

 

  • Please note that the reporting of Days to Contract  changed last month. Rather than report the AVERAGE Days to Contract, the Reno-Sparks Association of Realtors is now reporting the MEDIAN Days to Contract.  It has been brought to our attention that Median Days to Contract reveals a more realistic picture of what Realtors are experiencing on a daily basis.  The Median Days from Public Listing to Acceptance of Offers was only 9 days in October 2021.

 

  • The graph to the right shows the Median Days from Listing to Contract over time.  Though we have seen the fast-paced market in past years, the most consistent period of rapid movement has happened since the beginning of the COVID-19 pandemic.

 

  • The graph to the right shows Days to Contract by Price Range. During October 2021, the Median Days to Contract was 36 in the $1.5M+ market, which is still quite fast for the luxury market.

 

  • The # of New Contracts (homes with accepted offers) increased 8.5% month-over-month and decreased slightly (3.3%) compared to last year.

 

 

  • The # of New Listings dropped from 733 in September to 606 in October 2021, a 12.6% decrease. The # of New Listings in October 2021 was nearly identical compared to last year.

SUMMARY:

    • Low inventory and high buyer-demand continue to place upward pressure on the market, as shown by the further increase of the Median Sales Price, now $540,000 in Reno and Sparks combined.
    • Over the last few months, the number of Units Sold has held fairly steady.
    • A balanced market sees 5-6 Months Supply of Inventory (MSI) and the current rate of sales is 1 Month Supply of Inventory.  We are still very much in a strong Sellers’ market.
    • When we see price decreases on real estate search engines, this is usually an indication that the home was originally priced too far over market value when first listed.  Past sales show that pricing the home at, or near, market value, usually generates more showing activity and one or more offers more quickly.  On the flip-side, over-pricing when entering the market, the ultimate sales price tends to decline due to excessive time on market.
  • Predictions for what is to come?
    • In a recent article by Fortune.com, analysis raise 2 critical questions:
      • 1) How high will mortgage rates climb in 2022?  “Higher than expected inflation makes it all the more likely that the Federal Reserve would raise the federal funds rate—something it has kept near zero during the pandemic in an effort to encourage more economic activity. But if the Federal Reserve does raise rates, it would also see the average 30-year fixed mortgage rate rise.”  Will the impending rise of mortgage rates cause more buyer to purchase homes in the next few months? Only time will tell.
      • 2) Will supply chain shortages hold back homebuilders in 2022?  Fluctuations in lumber prices and demand over the course of 2021, supply chain issues with building materials and home appliances, and worsening labor shortages are noteworthy issues that could continue to slow new home construction sales, thus potentially further negatively impacting supply and placing upward pressure on prices.
  • Are you in need of guidance for your next real estate purchase or sale?  I am here for you.  Email direct 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 14, 2021

May 2021 Market Report

** Data in this report reflect market activity from APRIL 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.

  • April 2021’s Median Sales Price in Reno-Sparks inched closer again to $1/2M, and is $495,000.  This represents a 2% increase month-over-month, and a 19% 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.

  • For the 4th straight month, the Reno-Sparks market has seen an increase in sales of single family homes.  570 units sold in April 2021, a 21.5% increase month-over-month and a 45% increase compared to April 2020.

  • Refer to the chart above for the distribution of single family homes sold in April 2021.  The bulk of properties sold fell in the $400k-$500k price range.  Historically, the majority of single family homes have settled in the $300k-$400k range.  However April 2021 was the 3rd straight month that the $400k-$500k range outpaced the $300k to $400k range.  In other words, about a year ago, the same house that would have sold in the lower price range has appreciated into the next higher price range.

  • Every month since April 2020, the Average Sold Price per Square Foot has steadily increased and is now an average of $290/Sqft.  This running average represents properties sold over ALL price ranges.

  • Please refer to the chart above for a breakdown of the Average Sold Price per Square Foot by Price Range in April 2021.  Note that of the 23 homes over $1.5M, the Average Sold Price per Square Foot was $482.  April’s average is 13% higher that the year’s average so far.

  • Yet again, the Months Supply of Inventory (MSI) in April 2021 sits at 0.5 MSI.  April 2021’s MSI is a staggering 80% lower than in April 2020. This means that what little active inventory we have would “sell out” in only 2 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) stayed the same or decreased in nearly all price ranges.  The luxury market had a slight increase in the MSI, but is still WELL BELOW the balanced market inventory of 5-6 months.  It’s a Sellers Market across the board.

  • The average Number of Days, Listing to Contract, over all price points in April 2021 was 18!  Check out the graph below for the breakdown at each price-point.

  • Check out the breakdown by price-point over the last few months for the Average Number of Days from Listing to Contract.  Single family homes priced under $600k have been moving into contract wicked fast consistently in February, March and April.

  • The number of New Contracts to hit the market in April 2021 was 576.  This represents just a 3.7% decrease compared to March 2021 and a 50% increase compared to April last year.

  • Spring activity is in full swing!  The New Listing count ticked up for the 4th straight month with 636 single family homes brought to market.  A steady increase in new listings is very typical for this time of year.

SUMMARY:

  • We continue to watch homes in Reno-Sparks hit the market and fly into contract at a rapid pace!  With an average of 18 days on from listing to contract over all price points and 2 weeks supply of inventory, many buyers are feeling the pressure of the market these days.
  • Both the The Median Sales Price and the Average Sold Price per Square Foot continue to climb… $495,000 and $290/sqft.
  • Mortgage interest rates are still relatively low, at least for now.  Freddie Mac Chief Economist Sam Khater acknowledged while low mortgage rates have been “a boon to the housing market,” they may not last much longer, as “consumer inflation has accelerated at its fastest pace in more than 12 years and may lead to higher mortgage rates in the summer.”  If this happens, what will the impact be on the market climate locally and nationally?  Only time will tell.
  • What is YOUR real estate need? If you need to buy 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 April 15, 2021

April 2021 Market Report

** Data in this report reflect market activity from MARCH 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.

  • In the Reno-Sparks market, the Median Sales Price bumped from $450,000 to $485,000.  The median sales price represents 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 and looking at the bigger picture, the graph above illustrates the massive increase in the Median Sales Price over the last 4 years.

  • The number of single family homes that sold is beginning to show an increase that is typical for the spring season. Still, only 459 single family homes sold in March 2021, an 11% decrease year-over-year, and a 19.5% increase month-over-month.
  • March 2021 saw the Average Sold Price per Square Foot continue to steadily climb, reaching $272/square foot.  This average represents properties sold over ALL price ranges.

  • Please refer to the chart above for a breakdown of the Average Sold Price per Square Foot by Price Range in March 2021.

  • The rapid rate of sales at 0.5 Months Supply indicates that we are nowhere near being out of this Seller’s Market. March 2021’s Months Supply of Inventory is a whopping 71.5% lower than in March 2020. This means that what little active inventory we have would “sell out” in only 2 weeks if sales continue at the current rate.  Note, a balanced market is more like 5-6 months supply.

  • Observe the chart above that in nearly all price ranges, the Months Supply of Inventory dropped month-over-month.

  • The average Number of Days, Listing to Contract, over all price points in March 2021 was 18!  … a NEW record low.  Check out the graph below for the breakdown at each price-point.

  • Nearly all price ranges saw single family homes going into contract more quickly in March, compared to February.  The most noticeable quicker movement was observed in homes that were listed for $600k+.

  • Again, taking a step back, the graph above shows the Days to Contract statistics over the last 4 years, and the fast paced market we are in right now!

  • Likewise, with single family homes getting into contract more quickly, Sellers are also often receiving multiple competing offers well over asking price.  The average % of List Price Received over all price points in March 2021 was 102.3%.

  • The spring selling season is officially upon us!  Though volume and unit sales are both significantly low compared to years past, March 2021 saw 40% more New Contracts compared to March 2020, and an increase of 53% in New Contracts compared to the previous month.

  • The number of New Listings in March 2021, at 592, has increased for the fourth straight month, pointing to a common increase in activity this time of year. Though the number of New Listings is 8.8% fewer compared to March last year, March 2021 saw 29.5% more New Listings compared to February 2021.

SUMMARY:

  • The rate of absorption continues to be extremely low, with only about an average of 2 weeks of supply.
  • The Median Sales Price in March 2021, the mid sales-point for sold homes of all price-ranges, was 17% higher than March last year and is $485k for Reno and Sparks combined.
  • The Average Sold Price per Square Foot continues to steadily rise and is now $272/square feet in Reno-Sparks.
  • Average Days to Contract for single family homes is 18… historically low!
  • Need to make a move in this highly competitive market? … 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.