Fall is coming to an end, which means the real estate market in Sparks-Reno is preparing to enter its winter season. To briefly recap what happened in November 2022, home sales, buyer demand, and inventory levels were down. But not all segments trended down—median housing prices increased slightly month-over-month, and homes took longer to get into contract.
With these factors in mind, we know that the market remains strong, providing both buyers and sellers opportunities to find success in the coming months. Here's everything you need to stay informed and up to date.
Home Prices Up Despite Fewer Sales For The Real Estate Market In Sparks And Reno
November Home Sales Showed Seasonality In The Market
In November 2022, the real estate market in Sparks-Reno saw 347 homes sell, representing an 8% decrease month-over-month and a 36.2% decrease year-over-year. Though this may seem like a significant decrease, this graph shows that home sales have reached levels like this in the years before the pandemic. Seasonality is also coming into play, where home sales typically slow down through the holidays.
Housing Prices Rose Once Again
When the pandemic started in Q1 2020, median housing prices for the real estate market in Sparks-Reno began climbing—reaching an all-time high in May 2022. Then, with higher mortgage rates, home sale prices began to decelerate in Q3 2022.
However, in November 2022, the median home sale price rose again to $550,000, a 1.9% increase from the previous month and a 2.5% increase from the previous year. This slight increase shows that the market is stable, despite seasonal trends and reduced buyer purchasing power from higher mortgage rates.
There Were Fewer Available Homes For Sale
We measure supply by looking at the number of available homes for sale each month. This metric, known as active inventory, can provide buyers with a better picture since the real estate market in Sparks and Reno is constantly changing with an influx of listings.
In November 2022, there were 1,025 homes were available for sale, down 18.9% from October 2022 but up 116.7% from November 2021. This number is an excellent indicator that there's not an oversupply in the market, which helps keep home sale prices stable.
Not As Many New Listings Entered The Market
To get an even deeper understanding of supply, we also look at the number of new listings that come into the market every month. In November 2022, there were 285 new listings, down 32.9% from the previous month and down 26% from the previous year. Though this change may seem significant, it is typical for listings to decline during the fall and winter seasons. Some sellers may also be holding off due to uncertainty in the market.
Buyer Demand Was Down Slightly
If you're trying to gauge demand in the Sparks and Reno real estate market, one of the best indicators is the number of homes going into contract every month. In November 2022, 322 homes went into contract, representing a 6.7% decrease from the previous month and a 31% decrease year-over-year. Similar to what we saw with the number of homes sold, this number represents how rising mortgage rates and seasonality have caused the market to slow.
Homes Took Longer To Go Into Contract
The number of days it takes for a home to go into contract is increasing. In November 2022, it took 47 days for a home to go into contract, a 30.6% increase month-over-month and a 213.3% increase year-over-year. This number is consistent with years before the pandemic when homes would typically sell in 30 to 60 days.
There Was More Negotiation On Asking Price
In November 2022, the average sale price for a home was 97.4% of the asking price, a slight decrease month-over-month and a 2.4% decrease year-over-year. This number indicates that buyers currently have the upper hand, despite higher mortgage rates and a slight increase in housing prices. Still, there are many steps sellers can take to receive top dollar for their homes, such as offering closing cost credits.
Real Estate Market In Sparks And Reno: Advice For Sellers And Buyers
Buyers: After reading this update on the real estate market in Sparks and Reno, there are a few key takeaways to remember. As a buyer, you have the upper hand. And although housing prices rose slightly and inventory levels declined in November 2022, there's less competition in the market. So, if you find a home you love, it likely makes sense to put in an offer. Contact one of our neighborhood experts to help explore your options. Sellers: Given seasonality and higher mortgage rates, you may feel pressure to take the wait-and-see approach or reduce your sales price. However, there are benefits to listing your home in winter. With less inventory in the market, there's also less competition from other sellers. Housing prices also rose in November 2022. So, now's the time to act quickly and contact one of our agents to help get the most value for your home.At Dickson Realty, we share monthly updates on the real estate market in Sparks-Reno to keep clients and community members informed. For more information about buying or selling a home in Northern Nevada, contact one of our neighborhood experts today.
