Reno/Sparks Market Report
Frozen or Flourishing? Assessing the Northern Nevada Real Estate Landscape
We've enjoyed a delightful fall in northern Nevada, but it's no surprise when the weather suddenly shifts, and snow arrives overnight; it's a yearly occurrence. As we step into November and approach the holiday season, we hope for more beautiful, albeit chilly, days.
As usual, our real estate market is slowing down with the arrival of cooler weather and the holidays. By the end of October, we observed a slight increase in inventory, up by 2.62% compared to September, but a significant 33.41% decrease from October 2022.
The number of properties sold in October decreased by 7.82% compared to September, which is a typical seasonal decline. In a more meaningful comparison, the October 2022 to October 2023 sales declined by 9.28%, reflecting a return to a more stable market post the frenzied years of the pandemic.
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The median price increased by 0.88% from September and a substantial 6.48% when comparing October 2022 to October 2023. In a conventional market, rising inventory often leads to falling home prices, but this hasn't been the case so far. The inventory's distribution by price range may offer a clue as to why prices continue to rise, with the persistent issue of limited availability in the most sought-after price brackets.
New listings are down compared to September and the previous October, which is likely to maintain price stability and potentially lead to further increases.
The number of days on the market is gradually increasing, up by 9.46% over September, reflecting the typical seasonal trend. Surprisingly, it's only 8.99% higher than October of the previous year. This suggests that homes are staying on the market a bit longer. As we've mentioned before, buyers nowadays expect turn-key conditions and updated homes with minimal required repairs. Therefore, sellers, it's advisable to consider conducting your own home and pest inspections before listing your property. This gives you time to research and obtain multiple bids for any major repairs that may be necessary. It also ensures that you can schedule an electrician, plumber, or heating and air conditioning vendor before the close of escrow.
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Our community continues to attract new residents looking to make this place their home, which implies they have the means, whether through jobs or assets, to pay in cash or qualify for a mortgage. This is promising news for our market values.
