Reno/Sparks Real Estate Stats for September 2018

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The new Reno/Sparks market stats are out. 

You can view the whole report there here… RSAR September 2018

Below is a breakdown with commentary.

  • The median sales price rose $374,000. Up 1% from August and up 11% from last year. We talked about this last month. There was an early seasonal dip in August that we believed would be corrected in September. 
  • There were 439 sales in September. Down 22% from August and down 28% from a year ago. That’s a huge change. 439 sales is more like a winter month number. Not a coming out of the summer number. Some of this may be due to the low inventory but I believe it’s closer related to a slowing market. 
  • New listing are down 22% from August and up 10.3% from September 2017. Not much out of the ordinary here. We’re moving into the cold months. 
  • The month’s supply of inventory or the time it would take to sell all the available houses with no new ones coming on the market jumped to 3.1 months. Nearly double September 2017. Other than the median sales price, this is the best indicator of a slowing market. Even though 3.1 months is still a seller’s market it’s nice to not see 1 month’s inventory anymore. What this means is houses will be more likely to sit on the market and incur price reductions before selling unless they’re priced at market comps from the beginning. 

One thing not noted in the report is interest rates. Freddie Mac had the average commitment interest rate at 4.63% in September 2018. In September 2017, that rate was 3.81%. To a home buyer on a $400,000 house it’s around a $175 difference between 2017 and 2018. That’s a huge difference in monthly payment.

The difference of $175 per month is equivalent to losing $35,000-$45,000 of purchase power.

So buyer’s have a choice, stay in the same price band and pay an extra $175 or look in a lower price band which could mean a different area.

Seller’s have a choice too. Try to sell to a smaller pool of buyer’s if most are dropping down a price band or move their pricing down as rates increase. For sellers, lower sales prices lead to less down payment on the new house and now the seller may be purchasing in a lower price band than they had originally anticipated .

 

For more information on Reno and Sparks Real Estate email me at Ricky@RickyBeach.com or call (775) 750-1437.

Reno/Sparks Real Estate Stats For August 2018

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The August statistics have been released from the Reno/Sparks Association of Realtors.

The full report can be viewed here.

Main points are below with my commentary in italics…

  • The median sales price dropped from $389,000 in July to $373,000 in August but is still up 6% from last year. Usually we see a small variation from July to August (< $2,500) with a bigger drop in September so this is a pretty major drop compared to the previous 3-4 years. 
  • Sales are down 4% from July and down 23% from August 2017. Overall, sales are down 8% when comparing total sales to this point in 2017. Inventory has been low for years which leads to a lack of sales but there’s also a feeling that the market is slowing down (more below).
  • New listings rose 10 % from July.
  • Months supply of inventory hit a 16 month high at 2.4 months. Months supply of inventory is the time it would take to sell all the available houses and deplete the market. 
  • The amount of days it takes to get a home in contract rose to 42 days on average. Another indicator of a slowing market. 

Overall, I believe the market will move slowly through the fall and winter months with maybe a little rebound in late September. We’re seeing numerous homes receiving price reductions prior to selling which extends the market time (noted in the last bullet point). We’re not in dire straits for listings like in the previous months and years but it seems to be a seller’s market that requires some patience on the sellers part. Or at least a good sense of reality when setting the list price.

For questions on the Reno/Sparks real estate market I can be contacted at (775) 750-1437 or Ricky@RickyBeach.com

 

Ricky Beach

Broker/Salesman


Keller Williams Group One Inc.

10539 Professional Circle., #100

Reno, NV 89521

Office: (775) 393-9601
Cell: (775) 750-1437
Email: Ricky@RickyBeach.com
Website:www.RickyBeach.com

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June 2017 Reno/Sparks Market Stats With Video

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I haven’t posted in a long time but plan on getting back at it with weekly posts.

The new stats are out from RSAR… June 2017 Stats

Here’s an overview with some commentary…

  • The median sales price rose 1.5% month to month to $340,000. Up $27,200 from June 2016.
  • Reno’s median price is $360,000.
  • Homes sold jumped 8.4% from May and 11.3% from June 2016
  • The average price per sqft is $193 up from $179 in June 2016.
  • Months supply of inventory is 1.5 months. That’s the lowest I have ever seen it. 

 


 

Economist Dusty Wunderlich stated, RGJ.com, that 55% of residents cannot afford a house in the median sales price range.

The median income in Reno is $47,012 (Census.Gov) or $3,900 per month. A home at $340,000 with 10% ($34,000) down comes out to about $1,900 per month. That leaves about $2,000 left over for utilities, health insurance, food, savings, car payments, etc. For a low cash buyer, an FHA loan on the same property would be around $2,150.

Both scenarios leave little money after the mortgage and are outpacing rents (not by much).

So who’s buying?

  • Selling buyers: They hit the market at the right time from 2008-2014 and have seen returns eclipsing $150,000 on their homes. This is now play money being used to get homes 1000+ sqft bigger, in a better neighborhood, with more upgrades for a similar payment.
  • Our Western Neighbors: People selling their house in California for $600,000+ and not batting an eye at 2400 sqft for $450,000.
  • Investors: I don’t see how the numbers work but I’ve noticed for rent signs on brand new $400,000+ houses the day after closing with a builder.

 

For more information on the housing market, buying or selling contact Ricky at (775) 750-1437 or Ricky@RickyBeach.com

 

 

Reno/Sparks Home Market Dynamics for March 2016

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In order to give a little more insight our market my office has created a dynamics report.MarketDynamics

The report breaks down our actives and sales in price bands and areas.

This offers a more detailed look than the whole market report from our association. That report is here… RSAR Report

The dynamics report is available here… March 2016 Dynamics Report

I enjoy the dynamics report because it offers ratios of the sold price to list price, sold price to original list price, days on the market before contract, and a more concise breakdown of the supply of inventory for buyers in each price band.

It’s valuable asset for buyers to get a grip on what the market is doing and for sellers to learn what to expect with marketing times and offer negotiations.

I’ll detail the reports more in the future but for now have a look and let me know what you think.

For more information on buying and selling in Reno/Sparks contact me at (775) 750-1437 or email Ricky@RickyBeach.com

To search for homes visit RickyBeach.com

To get your home’s value visit HomeValuesOfReno.com

To stay up to date on your neighborhood visit RenoSnapShot.com.

If you have any specific questions email me at Ricky@RickyBeach.com

Ricky Beach

Broker/Salesman


Keller Williams Group One Inc.

10539 Professional Circle., #100

Reno, NV 89521

Office: (775) 393-9601
Cell: (775) 750-1437
Email: Ricky@RickyBeach.com
Website:www.RickyBeach.com

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Reno Real Estate Stats For March 2016 (Video)

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Thanks again to the Reno/Sparks Association of Realtors for the updated stats.

You can view the whole report here… March 2016 Stats

Below is an overview with commentary…

  • The median sales price hit $296,000. The last time I wrote the median sales price had dropped to $278,000 an the naysayers came out. Well two months later we have to consecutive months of price increases. 
  • Units sold jumped to 559 from 366. Pretty typical of the time of the year. It’s hardcore selling season again. 
  • New listing went up to 736 from 574. Another reason sales went up. We have a little more inventory.
  • The average price per sqft moved a little to $168 per sqft.
  • Even though we had a bunch of new listing they sold quick and inventory is at a ridiculous 2.8 months. This is the lowest I think I’ve ever seen it. An average market is between 5-7 months. 

Overall, it’s still a seller’s market and many people are getting priced out. Depending on where you’re looking, a nice 2000 sqft. house can go for $300,000-$550,000.

 

For more information on buying or selling feel free to call or email me. (775) 393-9601 or Ricky@RickyBeach.com

Below is your video of the statistics…

 


To search for homes visit RickyBeach.com

To get your home’s value visit HomeValuesOfReno.com

To stay up to date on your neighborhood visit RenoSnapShot.com.

If you have any specific questions email me at Ricky@RickyBeach.com

Ricky Beach

Broker/Salesman


Keller Williams Group One Inc.

10539 Professional Circle., #100

Reno, NV 89521

Office: (775) 393-9601
Cell: (775) 750-1437
Email: Ricky@RickyBeach.com
Website:www.RickyBeach.com

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