Today we want to take an in-depth look at the existing housing inventory and sales statistics for the Reno-Sparks area.
According to First Centennial Title Company, the total number of homes and condos in Reno/Sparks as of March 17th, is just under 115,000. The total number of non-owner occupied homes and condos is just over 36,600, or approximately 32%.
Using the Reno/Sparks Association of Realtors calculations for available inventory, there was 3.6 months supply of inventory at the end of February. This includes all active statuses; Active and Available plus active/pending (or in contract / in escrow). If we look at only Active and Available, which are properties available to purchase and make an offer on, there is just a 1.48 month supply. These numbers are for condos, manufactured homes and single family residences in Reno/Sparks.
According to the National Association of REALTORS, homeowners are staying in their homes longer; 10+ years now versus the previous average of 7 years. This is helping to reduce the number of homes that are being offered for sale, and the resulting low inventory is contributing greatly to the increase in median home price.
If we break down the months of inventory by price range, as of the sales through March 15 we see even lower levels of inventory, especially in the under $300,000 price range. For homes priced $10,000-$300,000 there is only 17.6 DAYS of inventory. For homes in the range of $301,000-$600,000, inventory is less than 2 months. Only when you get over $600,000 do inventory levels get higher, to just over 9 months of inventory. And for homes priced over $1.5 million, the current months of inventory is just over 34 months.
When looking at sales for the first quarter of this year, seventy percent of all closed sales since January 2015 were in the under $300,000 price range. For perspective, nationally 40% of sales were in this price range. Twenty-six percent of all closed sales were in the $301,000-$600,000 range; and only four percent of closings were for homes over $600,000.
What are the reasons for the inventory shortage, especially in the lower price ranges? There are many first time homebuyers. For all home buyers, credit is more difficult to obtain, and buyers need more money down to purchase. Competing in the first time buyer price ranges are the investors who are using their capital reserves to pay cash, and in some cases pay over asking price and further drive prices up.
Increased values are putting more sellers in a positive equity position. This may be you, and if you are ready to relocate, move up or down-size, the time may be right to talk to a Dickson agent.
At Dickson Realty, our agents have the tools and technology to stay on top of the market. That will help you buy or sell at the right price.
Trust the experts at Dickson Realty to get you the information you need, when you need it. We’ve been assisting buyers and sellers in northern Nevada for over 40 years.
Thank you to our segment sponsor GCO Carpet Outlet.