Every day I look at my market monitor in the multiple listing service for the Reno-Sparks market that displays new, expired, price changes and sold listings. This is where I keep my fingers on the pulse of the market. Over the past month or so I have seen a new trend developing – more price changes than new listings. As of today for residential properties in the Reno-Sparks market my market monitor going back 7 days is showing 173 new listings, 6 expired listings, 228 price changes and 125 sold listings. What really stands out is that there are more price changes than new listings. What does this mean?
We have seen a steady increase in the number of new listings each month of this year, with an average of 645 from January to June and 771 new listings in July. We have also seen the median price increase from $220,000 in January to $250,000 in June and July. With new listings increasing competition increases. With median price increasing many buyers are priced out of the market or sitting on the sidelines not wanting to buy at new price highs for our market.
Of the current active listings 44.26% have had a price reduction and have been on the market an average 90 days. With close to half of the active listings having a price reduction from the original list price you could say that many listings are coming on the market over priced.
What does this mean for sellers? It is crucial to be working with a strong listing agent who can show you accurately what the market is for your property. Your motivation as a seller is an important part of the listing price strategy, but “testing” the market with an overpriced listing will almost always result in a stale listing that sits with no offers. If your agent can’t explain to you what is happening in your market, and show you the odds of selling your home in the time frame you are looking to sell you might have the wrong agent.
What does this mean for buyers? 3-6 months ago many buyers in the more competitive price points that were looking to buy homes with FHA, VA and other down payment assistance programs were getting beat out by multiple offers on a regular basis. With homes sitting on the market longer and many facing price reductions the door is open for buyers to get offers accepted without the “frenzy” of multiple offers. Again working with an experienced agent is key.
Contact me today if you have questions about the market whether buying or selling.