In the last quarter of 2022, Northern Nevada real estate trends reflected the seasonality of the market, which affected buyers and sellers. In December 2022, median housing prices in Reno-Sparks dropped slightly, fewer sellers listed their homes, and while active inventory levels declined, they stayed within pre-pandemic averages.
It’s also essential to consider the influence that national trends have on our local housing market. Since the pandemic started, the U.S. economy has been impacted by 40-year high inflation, rising interest rates, and now recession fears. But, after the last two years of extremes, there are indicators that correction is underway. Mortgage rates declined slightly in December 2022, and housing prices continued to stabilize.
Mark Fleming, Chief Economist at First American Title, explained what housing market stabilization could look like this year:“Once adjusted to the new normal of higher mortgage rates, the housing market will benefit from continued strong demographic-driven demand relative to an overall, long-run shortage of supply.”
In 2023, we expect home sales and prices in Northern Nevada to continue adjusting with mortgage rate shifts. Inventory levels should also rise with warmer weather. Keep reading for some of the key takeaways on Q4 2022, or watch our latest market update below.
Northern Nevada Real Estate Trends to Pay Attention to in 2023
Key Takeaways for National Housing Trends:
December 2022
- The decrease in U.S. existing home sales in the last quarter of 2022 represents a 1% drop from the 10-year historical average.
- The mortgage demand index shows that the higher interest rates continue to affect buyer purchasing power, significantly driving demand down.
- Mortgage rates declined slightly in the last quarter of 2022, which caused a slight uptick in demand, indicating that active shoppers remain in the market.
Key Takeaways for Northern Nevada Real Estate Trends:
December 2022
- Home sales decreased 4% month-over-month and 35.4% year-over-year.
- The median home price decreased 5.5% from the previous month to $519,950, also representing a 4.6% decrease from the previous year.
- With seasonality and the holiday season coming into play, 252 new homes were listed, a 12.5% decrease month-over-month and a 16.6% decrease year-over-year.
- Available homes for sale increased 135.9% year-over-year
- Buyer demand declined 8.9% from November 2022 and 23.3% from December 2021.
- Homes took longer to sell, from 47 days in November 2022 to 53 in December 2022.
- Sellers received an average of 96.9% of their original asking price, indicating that buyers have more room to negotiate.
At Dickson Realty, we are proud to share the latest on Northern Nevada real estate trends for clients and community members to stay informed. Subscribe to our newsletter to receive email notifications on our monthly and quarterly updates.
