Reno-Sparks Market Report
This report will help you stay informed for your buying and selling decisions by breaking down the numbers and finding the trends.
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As we come out of one of the wettest winters in local history, the sun is shining, the temperatures are rising and our official Spring selling season is upon us. We have seen an uptick in our real estate market since February. It was not a shock that the Fed raised interest rates last week by .25% basis points, but it has had little to no effect on the buyers in our market. Experts have described how the inventory crisis was exacerbated by the market we experienced during COVID in 2019-2021, where people were moving to new areas based on the ability to work from home. Now all of those buyers are sitting on the low interest rates that they locked in during that time, leading to fewer new listings and sustained low inventory. Comparing April 2022 to April 2023, the number of homes on the market has increased by 10%, which sounds great but we are still in huge demand for affordable housing. While sales decreased by 25% we did see median prices increase by 9%, and days on the market increased by 40%.
Upon examining the statistics from Q1 of 2023, it is evident that the demand for the market is gaining momentum. Despite a 40% decrease in new listings in April, the active inventory has increased due to higher absorption. Additionally, there has been a month-over-month decrease in new pending and closed sales, as well as a rise in median prices throughout the first quarter of 2023. Furthermore, the average time it takes for a listing to get into contract has reduced significantly from 58 days to 18 days in the last three months, indicating a faster-paced market and a stronger demand in the region.
Click here for a printable version of these charts
Months of Inventory is the amount of time it would take to sell all existing homes for sale if no additional homes entered the market. It is a great marker to understand supply vs. demand in real estate and whether it’s a more favorable buyer’s market or seller’s market. A five to six month supply of homes historically represents a balanced market, where neither buyers or sellers have an advantage.
We currently have a 3-month supply of homes in the $1,500,000+ price range compared to March of 2019, when supply was 1 year. The majority of sales (65%) have occurred in the $400,000 - $700,000 range in our region this year. For that price range, months supply of inventory is at 1.8 months (55 days). The Reno-Sparks Median Sales Price is currently $539,950.
If you have any questions about this report, real estate in our region, or the value of your home, don't hesitate to reach out. It would be a pleasure to assist you.
