Reno-Sparks median price hits record $415K in March, but how long will it last?
Vegas home prices up as well
Las Vegas-area home prices hit a record high in March, ahead of the economic shutdown prompted by the coronavirus pandemic.
Las Vegas Realtors reported April 7 the median sales price of previously owned single-family homes climbed to $319,000, topping the previous record of $316,000 set in February and up 6.3% from March 2019.
Sales were up 5.2% for homes during the month, and up 11.7% for condominiums and town houses.
Association President Tom Blanchard acknowledged the monthly figures will drop following widespread effects of casino closures and a tourism shutdown to prevent gatherings that can spread the contagious COVID-19 respiratory illness.
More than 2,500 sales were canceled in March, up 94% from the same month in 2019, and the number of sales contracts signed was down 24%, the Las Vegas Review-Journal reported.
Blanchard said he wondered how good the numbers would have been without the virus, and said he was optimistic that sales will return.
— Associated Press
EDITOR’S NOTE: This story was updated Thursday morning to include comments and statistics from the National Association of Realtors.
The original story from Wednesday afternoon is below.
RENO, Nev. — Since the Great Recession, the real estate market in Northern Nevada has grown strong and steady. Thanks to a booming economy and swelling population, housing prices and demand have surged across greater Reno-Sparks over the last decade.
As the first quarter of 2020 wound to a close, however, the COVID-19 pandemic had shut down the state’s non-essential businesses, left many area residents jobless, and forced Nevadans to stay quarantined at home.
In other words, like nearly every sector of the Silver State’s economy, the COVID-19 crisis could threaten to put the housing market on shaky ground.
The size of the impacts and when they’ll emerge, however, is yet to be determined, according to real estate industry leaders who spoke with the NNBW.
Erika Lamb, president of the Reno/Sparks Association of Realtors, said the “market is holding steady” despite the pandemic.
“Even though the coronavirus is here, there are still properties that are selling,” Lamb said. “We’re still filling houses. More than ever, people want to get into their own house. If they are quarantined, they want to be quarantined in a place they want to be.”
According to an April 8 report from RSAR, the greater Reno-Sparks region (which includes North Valleys and Spanish Springs) had 502 sales of existing single-family homes in March — a 10% increase from February and nearly a 10% jump from March 2019.
The median sales price for an existing single-family home in March was $415,000, which was not only a 12.5% increase from last year, but also a record-high, Lamb said.
“Inventory may eventually be reduced as some sellers choose to wait until a time when they feel more comfortable with relocating,” Lamb told the NNBW. “We’ve not seen any indication of prices coming down, just the opposite. It could be due to low inventory.”
READ THE REPORT: Go here to read RSAR’s full March 2020 report, which includes more information and graphs about inventory, days-to-sold and other statistics.
Breaking it down by region, when looking only at Reno (which includes sales in the North Valleys), the median price in March was $430,000 — a 6 percent increase from February ($405,373) and a 10 percent increase from March 2019.
In Sparks (including Spanish Springs), the median home price was $389,000, an increase of 11 percent from last year and up 5 percent from the previous month.
Also, Fernley posted a median price of $278,000, up 7 percent from March 2019 and up 1 percent from February 2020.
Nancy Fennell, CEO of Dickson Realty, said they have seen “a few” sellers remove their listings, but “not many.”
Over the last few weeks, though, Fennell said she’s been dealing with more and more current and future homeowners worried about selling and buying their homes during this uncertain time.
“We are being asked frequently, ‘Should we put our home on the market as we planned to?’” Fennell said. “Our answer to that is they have to evaluate their circumstances, their health and their needs.
“I do believe as the numbers spike more cases in Washoe County, we will see more sellers and more buyers taking a break. Some buyers are seeing this as an opportunity to reset their offers.”
In the greater Carson City-Sierra region, 46% of buyers who were looking to purchase before the crisis are still actively searching for homes, according to a recent survey of 55 Realtors conducted by Sierra Nevada Realtors.
SNAR says another 46% have paused their home search, with plans to start again when the crisis is over. Meanwhile, 8% have decided not to buy at all.
Zooming out, the national housing market is beginning to see the impact of the COVID-19 pandemic.
According to a new report from Realtor.com, in the weeks ending March 21 and March 28, the number of newly listed properties fell by 13% and 34%, respectively, when compared with the same period a year ago.
The decline may indicate home sellers are holding off on listing their properties right now.
In the report, Danielle Hale, a chief economist with Realtor.com, said: “Our inventory and listing data can provide some early insight into how housing markets may be impacted by COVID-19, but the situation and reactions to it are still rapidly evolving.”
Meanwhile, this week the National Association of Realtors conducted a survey that indicates while a spring slowdown in home sales is expected, a majority of Realtors believe buyers and sellers will return to the market as delayed transactions following the end of the health crisis.
According to an April 9 press release from NAR, 59% of those surveyed said buyers are delaying home purchases for a couple of months, while a similar share of members, 57%, said sellers are delaying home sales for a couple of months.
“Home sales will decline this spring season because of unique economic and social consequences resulting from the coronavirus outbreak, but much of the activity looks to reappear later in the year,” NAR Chief Economist Lawrence Yun said in the release. “Home prices will remain stable because of a pandemic-induced reduction in inventory coupled with less immediate concerns over foreclosures.”
The survey also reports that 72% of Realtors said sellers have not reduced prices to attract buyers. Conversely, 63% said buyers are expecting a decline in home prices as buyers sense less competition in the current environment.
The most significant impact of the pandemic so far across greater Reno-Sparks, Lamb said, is the change in how real estate business is being done.
After all, with Nevadans quarantined until at least May and coronavirus cases continuing to rise, Realtors and agents are relying on technology more than ever to serve clients, offering virtual tours and live-streaming open houses.
As of April 8, Lamb noted there are 457 active listings in the Reno-Sparks area providing virtual tours to potential buyers. She added that RSAR is encouraging more Realtors to do virtual tours versus in-person appointments.
“A buyer can pretty much purchase a home today without ever leaving their living room,” said Lamb, noting that all Realtors are following the Centers for Disease Control and Prevention’s guidelines if showings are done in person. “RSAR also just placed an order for face masks that we will distribute to our members to use in the event of in-person showings, and booties and gloves and masks are being provided for buyers when entering a house.”
According to the aforementioned NAR survey, in regard to technology, most members surveyed said the most common technology tools used to interact with clients are e-signatures, social media, messaging apps and virtual tours.
IMPACT ON OFFICE PROPERTIES
For Melissa Molyneaux, senior vice president with Colliers International, who works exclusively on office properties, the inability to meet in person amid the pandemic is “making deals difficult.”
“Mostly,” she continued, “it’s from the inability to tour spaces and deploy resources — contractors, architects, designers, furniture, etc. — that are not possible virtually.”
Molyneaux noted that most deals “in process and far enough along” are still in motion. Moreover, she has not had any sellers pull their properties.
However, she expects the market to start stalling in the coming months.
“I anticipate the true slow-down will be felt in May and June as the velocity of new deals catches up to us,” she said. “I think the hardest part is that until we know when workers can return to offices, firms may be hesitant to relocate or expand.”
In terms of pricing, Molyneaux believes tenants will have the “upper hand” in negotiations, either through favorable rent, concessions or tenant improvement allowance until “the world returns to business as usual.”
The impact on inventory, she said, is harder to predict.
“I would imagine that as all firms evaluate how to save costs, the layout of square footage of their office space will be taken into consideration,” she said. “But, at this point, I think most are hoping that they can return to their offices once things return to normal.”
RSAR obtains its information from the Northern Nevada Regional Multiple Listing Service (http://www.nnrmls.com). Go to to rsar.net/reno-sparks-market-reports to learn more and access previous reports.
NNBW Editor Kevin MacMillan contributed to this report.
Heather Ashbridge, who started with Nevada State Development Corporation in 2008, previously served in several roles with the organization, including assistant vice president and loan officer. She is based in NSDC’s Reno office.