Market Trends Q2 2017 Market Report for the Reno/Sparks Region
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2nd Quarter Median SalesPrice Price &and Median Sales Average Sold Price per Square Foot Average Sold Price per Sq Ft
SPANISH SPRINGS
NORTH VALLEYS
SINGLE FAMILY
SINGLE FAMILY
CONDO
Median Sales $$ Median Sales $$ Year to year change + Â Year to year change + Â? Â Average Price/SF
CONDO
Median Sales $$ Median Sales $$ Year to year change +� �� Year to year change +� �  Average Price/SF
Average Price/SF
Average Price/SF
NORTH URBAN
SINGLE FAMILY
CONDO
Median Sales $$ Median Sales $$ Year to year change + Â Year to year change -14.54% Average Price/SF
Average Price/SF
NEW NORTHWEST
SINGLE FAMILY
SPARKS
CONDO
SINGLE FAMILY
Median Sales $$ Median Sales $$ Year to year change + Â? Â Â Year to year change -3.81% Average Price/SF
Average Price/SF
CONDO
Median Sales $$ Median Sales $$ Year to year change Š   Year to year change Š Â? Â
Average Price/SF
Average Price/SF
OLD SOUTHEAST
SINGLE FAMILY
CONDO
Median Sales $$ Median Sales $$ Year to year change Š �� Year to year change -� �  Average Price/SF
OLD SOUTHWEST
SINGLE FAMILY
CONDO
Median Sales $$ Median Sales $$ Year to year change +  Year to year change +�� � Average Price/SF
Average Price/SF
SINGLE FAMILY
CONDO
Median Sales $$ Median Sales $$ Year to year change +14.92% Year to year change Š   Average Price/SF
Average Price/SF
Source: Northern Nevada Multiple Listing Service (NNRMLS)
NEW SOUTHEAST
SINGLE FAMILY
CONDO
Median Sales $$ Median Sales $$ Year to year change Š� Œ Year to year change -� �  Average Price/SF
NEW SOUTHWEST
Average Price/SF
Average Price/SF
Reno-Sparks Market Update Market activity in the Reno/Sparks area for Single Family homes in June was hot, along with the weather. This is expected during the peak summer months. Let’s take a look at the details. There were 2,072 homes available at the end of June. While this is only an increase of 2 listings in available inventory when compared to May, it is a 22% increase from January’s inventory. Although this increase is heading in the right direction, our inventory is down by almost 14% compared to this time last year. It is important to note that these statistics include homes that are active and available for purchase, as well as homes that are in contract but not yet closed. Next, we will look at the number of units sold. Reno/Sparks area REALTORS® sold 718 single family homes in June, which was an increase of 5.7% from the end of May. The number of units sold is also up by 8.6% compared to June of 2016, in which 661 units were sold. With year-over-year inventory down and more sales year-over-year, our area will continue to experience increases in median price in many of our neighborhoods. How did the demand impact median price and average days on market through June? The median sold price for single family homes in Reno/Sparks increased from $335,000 in May to $338,500 in June. That calculates to a 1% increase from May, and a 12% increase since January of this year. When comparing yearover-year, June’s median price represents an 8.2% increase from June of 2016. Average Days on Market for homes sold in June decreased 6.5%, from 92 days in May to 86 days. During these summer months, we expect to see the average days on market go down even a little more. In a fast moving market such as ours, you will want to be sure to work closely with your Dickson Realty agent and your lender to be pre-qualified before looking at homes. Why should this information matter to you? When buying or selling a home, understanding the trends and seasonal changes in the market can be a challenge. Having a neighborhood expert and professional REALTOR® on your side is a valuable asset. Your Dickson Realty agent can provide you with up to the minute information about local prices and trends to help you negotiate the best deal. Trust the experts at Dickson Realty to get you the information you need, when you need it. We’ve been assisting buyers and sellers in northern Nevada for over 40 years, and we are the number one real estate company in the Reno, Sparks and Lake Tahoe market.
Reno is Hip! It’s time to be hip about housing. According to a recent article about Reno in Bloomberg Businessweek, we are a hipster haven, and while watching the Reno Rodeo parade, I could definitely see it. The headline was “Reno is Starting to Look More Like Silicon Valley.” It was a complimentary article about the many changes happening in our city and how these changes share similarities to the Silicon Valley. The article mentioned the Whitney Peak Hotel and the 15,000 new manufacturing jobs. However, what I see are the bright and creative entrepreneurial people who have built businesses around the new demographics in town; places like The Eddy, the Renaissance Hotel with their bocce ball courts, and the Nevada Museum of Art with their Burning Man archives, First Thursdays and Sky Room. While Silicon Valley is a beautiful place and a worthy model in many areas, housing is not one of them. While we are experiencing tight inventories and rising prices, another Silicon Valley similarity, this is a temporary issue for us. I believe we are in the “ying and yang” of real estate. We had a boom in mid 2000s, the economic crisis hit, and our construction workers left to find other jobs. Now, our economic development groups have done superb work and have brought businesses, people and jobs to our area – which means we currently have a temporary shortage of housing. We will have some pain for a little longer as construction workers come back to town or are brought by large companies, local ordinances get tweaked, money for builders becomes less difficult and then we will have an adequate and perhaps an over abundance of housing. While we are going through this, as appealing as Silicon Valley is, we need to chart our own unique course. Let’s be authentic Reno and authentic Sparks – and let’s not forget who we are and what we want our communities to be. It is obvious there are new people moving into the area. Panasonic (at the Tesla factory) is planning on hiring 3,000 people by the end of the year. Added to that number are the existing companies that are thriving and expanding, and the 100-plus companies that have come to town, attracting even more notice. These companies have driven our unemployment to fewer than 4 percent annually. Where are these new people living and what is happening in real estate? In some ways, it is the same story we have been writing about for the past eighteen months: Tight inventories have driven prices up. In May, the median price hit $335,575 with days on the market dropping to 93 from a high in February of 115. The number of units sold January through May was down from 319 in 2016 to 291 this year. New listings in May were also down by 11.2 percent. The housing model we have worked on for the past 40 years has changed. First time homebuyers are not selling their homes and moving up because they cannot find their next homes in the location and areas they want to live, so we are challenged with that first stage.
Reno is Hip! It’s time to be hip about housing. Developers who haven’t felt comfortable building standing inventory need to rethink their position, perhaps aided by construction funds from large companies moving into the area. New forms of building need to be considered which shorten the building time. New models of inventory using the “shared economy” for housing need to be considered. Our multifamily expert at Dickson Commercial Group, Trevor Richardson, shares his insights about the robust Reno apartment market we are experiencing. “On one hand, investors and apartment owners are enjoying the highest rental rates we have ever seen in the Reno area, which generates higher returns for their bottom line.” Rising monthly rental rates and challenges with the low availability of inventory are concern for tenants. Housing affordability is threatened in Reno due to rapid growth in both multifamily rental rates and single family prices. I believe this is temporary as wages rise because of our low unemployment numbers, and as more inventory comes on line. According to the Johnson Perkins Griffin’s fourth quarter apartment survey, rents increased by 12.6 percent to an average of $1,066 per month (year over year) and vacancy rates are down to just under 3 percent at the end of 2016. In the Reno/Sparks area, there are more than 1,000 units under construction and over 7,000 in the planning phases, many along the I-80 corridor, which will help the major employers located in the Tahoe Reno Industrial Center (TRI Center). Trevor notes that the hip urban restaurants, retail stores and bars in midtown and downtown have created an opportunity for converting existing motels into new apartment units, and shaping our downtown to a destination we have been working on for some time. Yes, we have some short-term challenges in housing, both single family and multifamily, but it is already forcing us to think more creatively about housing in our area. That is progress. I would mention, as the largest real estate company in the area, we have found housing for everyone that we have worked with this past year. It has taken longer – and the process requires patience, local connections and willingness for the buyers and tenants to understand the realities of our marketplace – but it happens.
Nancy Fennell is the president of Dickson Realty.
Trevor Richardson is the multifamily expert at Dickson Commercial Group.
I’M LOCAL I’M GLOBAL® $62 BILLION MORE U.S. HOME SALES VOLUME IN 2016 THAN OUR CLOSEST COMPETITOR Volume shown in billions of dollars $368
350
$306
$260
$225
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Leading Real Estate Companies of the World®
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RE/MAX 300
Coldwell Banker Keller Williams Berkshire Hathaway Home Services Century 21
250
Sotheby’s International Realty ERA Better Homes & Gardens Realty Executives
200
HomeSmart Real Living
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Leading Real Estate Companies of the World
INDUSTRYLEADING SALES. WORLD-CLASS SERVICE.
150
$150 $127 100
1.1 MILLION TRANSACTIONS $368 BILLION IN HOME SALES
$68 50
565 COMPANIES 4,100 OFFICES
$21
130,000 SALES ASSOCIATES 65 COUNTRIES
$19
$17
$12
Actual member statistics for LeadingRE and estimates for other networks using average sales units per agent and average sales price for firms in each respective network from published sources for 2016 production. Sources: REAL Trends National Network 2016 Totals Final Report, REALTOR® Magazine 2015 Franchise Report, and various website research.
As an affiliate of Leading Real Estate Companies of the World,® Dickson Realty is a local and global market leader working on your behalf. LeadingRE’s world-class marketing resources and connections allow us to provide you with a truly exceptional real estate experience. ®
© 2017 Leading Real Estate Companies of the World. All Rights Reserved. C–Sales Volume. 05.17
Equal Housing Opportunity.
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DOWNTOWN RENO 775.324.7000
CAUGHLIN RANCH 775.746.7000 TRUCKEE 530.587.7444
DAMONTE RANCH 775.850.7000 DONNER LAKE 530.587.4811
SOMERSETT 775.746.7222 PORTOLA 530.832.1700
MONTRÊUX 775.849.9444
SPARKS 775.685.8800
NAKOMA
530.322.3320
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© 2015-2017--- Dickson Realty. All rights reserved. Although the information above is deemed reliable, Dickson Realty does not guarantee its accuracy. If your property is currently listed for sale, this is not intended to be a solicitation.