What happened on September 21, 2020?

At the start of 2020 most housing market forecasts were all about 2020 home sales exceeding those of 2019 — itself a very good year for the housing market.

A few examples:

Indeed, the housing market, both nationally and locally, started 2020 with higher year-over-year sales numbers. A look at 1st quarter monthly units sold in the Reno-Sparks, Nevada market shows January, February, and March home sales greatly exceeding year-over-year numbers.

  • January sales up 20.1%
  • February sales up 26.7%
  • March sales up 12.7%

Locally, 2020 began the year with cumulative 1st-quarter sales 19.4 percent ahead of 2019 1st-quarter sales. 2020 was looking to be a great year for the housing market.

But then the Coronavirus Pandemic exploded

As the impact of the Coronavirus Pandemic spread across the world and the economy the housing market was one of the areas hardest hit. Stay-at-home restrictions were imposed. People were laid off. Buyer activity screeched to a halt. Viewings of homes were restricted, or disallowed altogether. And homes already in contract were falling out of escrow.

All of these things drastically depressed home sales in what normally would have been the robust spring home buying season.

Below are 2020 2nd-quarter monthly units sold in the Reno-Sparks market compared to to 2019 home sales.

  • April sales down 26.3%
  • May sales down 40.9%
  • June sales down 1.2%

Fewer homes were sold in the 2nd quarter of 2020 than were sold in the 1st quarter — a phenomenon not observed in any year previously.

In fact, 2020 2nd-quarter sales were so depressed (down 23.9 percent) that they wiped out any gains observed in the 1st quarter. The number of homes sold in the 1st half of 2020 was off 7.0 percent from the same time period in 2019.

Any hopes of 2020 being a breakout year for the housing market were now dashed.

But then things changed

As people began to come to terms with the Coronavirus Pandemic, and restrictions were lifted, buyer activity resumed — in a BIG way!

Fueled by record low interest rates, pent-up buyer demand, and the need for larger homes in order to accommodate the new work-from-home world, homes sales took off. Also contributing to the surge in home sales was the influx of out-of-area buyers leaving large urban areas and seeking less dense locales such as Reno, Nevada.

It was as if the flood gates had opened.

July sales in the Reno-Sparks market set a monthly high for the year — coming in at 748 homes sold — up a whopping percent from July 2019.

3rd-quarter monthly sales numbers saw large year-over-year increases for each of the months.

  • July sales up 23.0%
  • August sales up 5.1%
  • September sales up 18.6%

In fact, 3rd-quarter sales were so high that something remarkable occurred. On September 21, 2020 year-to-date sales in the Reno-Sparks market surpassed the number of sales for the same time period in 2019.

  • 9/21/20 year-to-date home sales: 4,542
  • 9/21/19 year-to-date home sales: 4,539

How will 2020 finish?

With just 2½ months remaining in 2020; cumulative year-to-date home sales [as of October 18, 2020] now a comfortable 1.6 percent ahead of 2019 sales for the same period; and buyer demand showing no signs of receding; it is safe to assume that 2020 home sales in the Reno-Sparks market will exceed the number of homes sold in 2019.

The intense buyer demand coupled with the extremely low inventory of homes for sale has also had a similar effect home prices. In fact, monthly median sale prices have set record highs four times in 2020. And October is on track to set a 5th.

Thank you for reading this post! I would love to read your comments and questions below.

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1. The “Past 13 Months of Home Sales Data” table above is updated on a monthly basis. The median home price data reported covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – October 18, 2020. Note: This information is deemed reliable, but not guaranteed.

For historical home sale data dating back to 1998 click here.

Click here to see Reno Homes for Sale.

Posted in Agent Insights, Market Trends, Reno, Sparks | Tagged , , , , , , | 2 Comments

This week’s real estate headlines

Here are a few real estate-related stories and news pieces that came across my screen this week…

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September Market Report for Reno and Sparks, Nevada

Reno-Sparks’ home prices pull back slightly in September; Homes sold set a record high!

September’s median sold home price for Reno-Sparks fell to $440,000 — a 1.1 percent pullback from August’s record setting $444,900 median sold price.

Year-over-year, September’s median closed sales price was up 11.4 percent.

September’s median sold price per square foot (PPSF) shot up to $240.24/sq.ft. Not only is that number a 5.4 increase over August’s sold PPSF of $228.19/sq.ft, but also sets a new record high for sold price per square foot.

Year-over-year, September’s median sold PPSF is up 10.2 percent.

Homes Sold

Home sales were through the roof in September! 678 homes sold for the month – setting an all-time high number of sales for the month of September. [Incidentally, the September with the next highest number of sales occurred in 2016 when 633 homes were sold that month.]

The 678 homes sold in September represents a 3.5 percent increase over the number of homes sold in August — which, itself, also saw an unusually strong number of sales. And, year-over-year, September home sales were up a whopping 17.1 percent!

Year-to-date home sales are now up 1.3 percent from the same period last year. Note, this is the first month this year, since the Coronavirus pandemic’s negative impact on home sales in March and April, that YTD home sales have exceeded the same period for 2019.

Inventory

Currently 432 homes are available for purchase in the Reno-Sparks market. This number is down 7.7 percent from the 468 homes available for sale this time last month.

And year-over-year, current available inventory is down a whopping 46.9 percent!

Pending sales receded in September — mainly due to lack of available inventory. Presently, 1,013 homes are pending sale in the Reno-Sparks market. That number represents a 5.1 percent decrease from the 1,068 homes pending sale this time last month.

However, year-over-year, pending sales are up 24.4 percent. Expect unseasonably high number of sales for the months of October and November.

Days on Market and Days to Contract

September’s median days on market (DOM) fell to just 49 days — a decrease of 5 days from August’s median DOM; and a year-over-year decrease of 19 days from September 2019’s DOM. These numbers show the velocity the current market.

September’s median days to contract (DTC) came in at 5 days — unchanged from August’s median DTC. Year-over-year, September’s DTC number is unchanged from September 2019’s number.

Sales by Type

September sales by type, break out as follows:

  • REO sales: 0.3% – down from August’s 0.5%
  • Short sales: 0% – unchanged from August’s 0%
  • Subject to Court Approval sales: 1.2% – up over August’s 0.2%
  • Relocation sales: 0.6% – unchanged from August’s 0.6%
  • Equity sales: 97.9% – down from August’s 98.8%

Sales by Price

September sales by price band break out as follows…

Sales by Price Segment
sales price ($000’s) units sold % of sales cumulative % of sales
0 – 99 0 0.0% 0.0%
100 – 199 2 0.3% 0.3%
200 – 299 29 4.3% 4.6%
300 – 399 207 30.5% 35.1%
400 – 499 197 29.1 64.2%
500 – 599 104 15.3 79.5%
600 – 699 46 6.8% 86.3%
700 – 799 25 3.7% 90.0%
800 – 899 17 2.5% 92.5%
900 – 999 12 1.8% 94.3%
1M+ 39 5.8% 100%
total 678 100%

September’s median sold price for houses and condos combined was $420,000 — a 1.2 percent increase over August’s median sold price of $415,000 for combined sales of houses and condos.

The table below contains the past 13 months of data[1]

Past 13 Months of Home Sales Data
Month Year # Sold Median Sold Price Sold Price per Sq Ft Median DOM # of Actives # of Pendings
Sep 2020 678 $440,000 $240.42 49 432 1,013
Aug 2020 655 $444,900 $228.19 54 468 1,068
Jul 2020 748 $433,160 $229.14 57 588 1,037
Jun 2020 564 $407,000 $222.09 58 688 1,062
May 2020 403 $399,900 $222.43 57 720 1,048
Apr 2020 392 $415,500 $219.95 51 812 697
Mar 2020 514 $415,000 $221.44 56 774 658
Feb 2020 459 $392,500 $211.63 78 587 816
Jan 2020 393 $405,000 $216.01 88 621 712
Dec 2019 518 $393,500 $216.29 81 779 541
Nov 2019 455 $400,000 $216.54 72 956 683
Oct 2019 563 $399,999 $216.61 76 1,090 773
Sep 2019 579 $395,000 $218.24 68 1,283 814

Please post your comments and questions below, and thank you for reading this post.


1. The “Past 13 Months of Home Sales Data” table above is updated on a monthly basis. The median home price data reported covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Residential data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – October 4, 2020. Note: This information is deemed reliable, but not guaranteed.

For historical home sale data dating back to 1998 click here.

Click here to see Reno Homes for Sale.

Posted in Agent Insights, Market Trends, Reno, Sparks | Tagged , , , , , , , , , , , , , , | Leave a comment

This week’s real estate headlines

Here are a few real estate-related stories and news pieces that came across my screen this past week…

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This week’s real estate headlines

Here are a few real estate-related stories and news pieces that came across my screen this week…

Posted in coronavirus, headlines, News | Tagged , | Leave a comment

This week’s real estate headlines

Here are a few real estate-related stories and news pieces that came across my screen this past week…

Posted in headlines, News | Tagged , | Leave a comment

This week’s real estate headlines

Here are a few real estate-related stories and news pieces that came across my screen this past week…

Posted in headlines, News | Tagged , | Leave a comment

This week’s real estate headlines

Here are a few real estate-related stories and news pieces that came across my screen this past week…

Posted in headlines, News | Tagged , | Leave a comment