Market Trends Q1 2017 Market Report for the Reno/Sparks Region
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1st Quarter Median Sales Median SalesPrice Price &and Average Sold Price per Square Average Sold Price per SqFoot Ft
SPANISH SPRINGS
NORTH VALLEYS
SINGLE FAMILY
SINGLE FAMILY
CONDO
Median Sales $$ Median Sales $$ Year to year change + Year to year change + Â Â?Â? Average Price/SF
CONDO
Median Sales $$ Median Sales $$ Year to year change + Â? Â?Â? Year to year change +Â? Â? 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 +58.76% Average Price/SF
Average Price/SF
NEW NORTHWEST
SINGLE FAMILY
CONDO
Median Sales $$ Year to year change + Â? Â?
Median Sales $$ Year to year change +Â Â?
Average Price/SF
Average Price/SF
SPARKS SINGLE FAMILY SINGLE FAMILY CONDO Median Sales $$ Median Sales $$ Year to year change ˆ †� Year to year change ˆ �
Average Price/SF
Average Price/SF
OLD SOUTHEAST
SINGLE FAMILY
CONDO
Median Sales $$ Median Sales $$ Year to year change ˆ� Year to year change ˆ� † 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 +0.56% Year to year change ˆ � Average Price/SF
Average Price/SF
Source: Northern Nevada Multiple Listing Service (NNRMLS)
Average Price/SF
NEW SOUTHEAST
SINGLE FAMILY
CONDO
Median Sales $$ Median Sales $$ Year to year change ˆ† �� Year to year change ˆ � Average Price/SF
NEW SOUTHWEST
Average Price/SF
Reno-Sparks Market Update Let’s take a look at the existing housing inventory and sales statistics by price range for the Reno-Sparks area, as of April 4th. Local housing inventory and affordability continue to be main topics of conversation in the real estate industry, both nationally and locally. The good news is, as of the end of March inventory of homes that are Active and Available is up 10.8% year-over-year. Inventory was higher for almost every price range compared to this time last year. This should bring some relief to buyers in our marketplace. When we look at absorption by price range, we still see a strong seller’s market in homes priced below $600,000. For homes priced below $300,000 we have 24 days of inventory, emphasizing the need for more affordable homes in the region. For homes in the range of $300,001-$600,000, available inventory is 56 days, or about 1.9 months. The exceptionally low inventory in these price ranges means it is a great time to sell with little competition, and consider moving up to a higher priced home, where more inventory is available. With an inventory of just over 5 months, the $600,001 to $900,000 price range represents the most balanced market between buyers and sellers. In the territory above $900,000, the market begins a shift to favor the buyer. The months of inventory sits at 9.4 months for properties in the $900,000 to $1,500,000 range. For homes priced over $1,500,000, we have a 4 YEAR supply. It is good to remember that The National Association of REALTORS considers 5 to 6 months of inventory a healthy market, where neither buyers nor sellers have a distinct advantage. As we finish the first quarter and head into the Spring selling season, it’s a good time to look at the Percentage of Sales by price range. Over 93% of all sales this year have been under $600,000, with 51.5% of sales occurring below $300,000, and 41.7% of sales between $300,000 and $600,000. Only 5.5% of sales this year have been between $600,000 and $900,000. The remaining 1.3% of sales were over $900,000. The supply-demand equation continues to drive home prices up in the most affordable price ranges below $600,000. However, the pace of price increases often depends on the neighborhood or area of town. Whether you are considering a move to downsize or to move up, now is a great time to speak with a Dickson Realty agent to discuss your options. At Dickson Realty, our professional real estate experts have the tools, training and award-winning technology to stay on top of the market. That will help you buy or sell at the right price. Dickson Realty is ranked the number one real estate company in the Reno-Tahoe region. We’ve been assisting home buyers and sellers for over 40 years. Call one of our offices or your Dickson Realty agent today.
Who is Moving Here and How Do We Keep Them Here? When I first started my newly created position at Dickson Realty — vice president of relocation — I wasn’t certain what the scope of my job would entail. At first it seemed I would spend all my time calling on corporate clients, but just like any job it’s more complicated than that. While the specifics of my job are different than most, I’d argue that we all need to do a little of what I’m doing to help create the community we want. I think in order to shape the growth of our community together, we need to get on the same page about growth. It’s happening and we need it to succeed. In a normal market nationwide, typical population growth is about 1 percent each year. Nevada is almost double that rate, named one of the two fastest growing states in the last year. We are finally back to our housing prices, population and employment numbers that we had 10 years ago. One would expect growth to surpass the levels we’re at today, and that is what is projected to happen. With the attraction of new companies and startups to our community, the expected amount of jobs projected to our region is 52,400, with a population increase of 64,700 between 2015-2019. This is great news — except that we don’t have the workforce to fill these jobs. The recent unemployment rate was marked at 4 percent in Reno-Sparks. There will be tens of thousands of jobs perfect for a talented millennial, but we just need to get them here, and we also need to make our region a place for them to stay. It’s not a shock that housing inventory is not meeting demand. With a surge in companies and people relocating to our area combined with the slow building of new homes and apartments, we have a housing gap. The University of Nevada, Reno Center for Regional Studies reported that the rate of new unit construction per new job is 0.28, and the Economic Planning Indicator Committee (EPIC) reports a housing unit shortfall of 20,000 units by 2020. The rental market is just as challenging, if not worse, with a 2.23 percent average vacancy rate across apartment unit types in Reno-Sparks, as reported in the Johnson Perkins Griffin, LLC Apartment Survey. With this news, some people want to halt growth. That is not the answer. We need to do the exact opposite and promote it. People love living and doing business here. Millennials want to move here and people actively make the decision to move here because the lifestyle and culture provides us with new places to eat and things to do all year. The price is right, especially compared to our California neighbors, and we have an incredibly favorable business climate. According to Doug Erwin, vice president of entrepreneurship at Economic Development Authority of Western Nevada (EDAWN), “The startup ecosystem has matured from where it’s started. We now have a lot of new players and access to new capital funds.” The entrepreneurial team at EDAWN has made tremendous strides attracting startups to our area. Bombora, a B2B data startup based out of New York, moved key team members to Reno, and now has 18 employees. Capstak, a commercial real estate technology company, plans to hire 25 people this year, and Clickbio, an innovative lab tools company, announced it has raised $285,000 in capital. Also, with the recent announcement of Ozmen Ventures, our startups and entrepreneurs have access to a seed and early stage venture capital fund. In 2017, startups in our region have already raised more than $25 million — that’s nearly double the amount raised in the year prior. Capital is the rain that spurs entrepreneurial growth, which is a critical piece of our regional economic development. The EDAWN team has historically spent 95 percent of their time supporting the ecosystem.
Who is Moving Here and How Do We Keep Them Here? “The big shift for me is putting more energy into attracting startups.” Erwin said. “The organic growth is great and it’s happening, but at a rate that is slower than if you bring in startup companies with a trajectory for exponential growth.” One recent company EDAWN has attracted is Petrichor. They are a technology startup from Ohio that recently moved four millennial employees, along with high tech salaries. I recently met with their CEO Jake Warner and he said, “The biggest reason we chose Reno is because we needed to live in a place where the talent wanted to move. Everyone here is willing to make introductions and that’s a very valuable thing.” Petrichor considered Seattle and Austin but ultimately chose Reno after they walked into The Basement downtown. “Driving past it you would never know, but it’s finding hidden gems that aren’t even in public view yet that tell us this city is growing.” Zazzle, an online marketplace that allows designers and customers to make their own products, recently announced that they are bringing 250 jobs to the region. They are saying similar things. Bridget Smith, vice president of Zazzle said it’s very hard to do business from a manufacturing perspective in California. Zazzle chose Reno because of the ease of doing business and also for the quality of life. “We are simply hoping for a better lifestyle for our employees,” Smith said. It’s truly an exciting time in Reno-Sparks, and one we have never experienced before. Our population is growing and we are seeking to attract a vibrant and energetic workforce to fill new jobs. We must continue to celebrate, yet prepare strategically for growth. Our aim at Dickson Realty is to have companies and their employees Move with Purpose — to create and support the right growth for our region with a unified relocation strategy that meets the demands of our community. I am thrilled to help lead that charge.
Editor’s Note: This article originally appeared in Northern Nevada Business Weekly on March 6, 2017. Kylie Rowe is vice-president of Relocation and Corporate Services at Dickson Realty, and is the author of the original article. Kylie is a regular contributor in the Northern Nevada Business Weekly.
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