Let’s take an in depth look at the Reno-Sparks housing market activity, comparing May to April, 2016, activity, and also to activity from May, 2015.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes in the Reno/Sparks area increased by a healthy 5.1% to $310,000 in May. When we compare this to a year ago, there was a very robust 9.4% increase, validating a strong market locally. Industry experts are not concerned about a bubble at this time, as the increases in value are being fueled by economic growth and jobs in our region.
The number of homes sold, or Units Sold, increased modestly from 568 in April to 584 in May. There was also a very slight increase in units sold of 1% when comparing year over year data.
There were 833 new listings on the market in May, which is 5% more than a year ago but 16 fewer new listings than last month. Over 40% of the new listings for May were priced $300,000 or below, where over 60% of sales in the area occur. Although we are seeing a small increase in new listings year over year, the current demand for homes is outpacing the supply. We’ll continue to experience a strong seller’s market until new home developers start building more homes, and more people list their homes for sale.
As we look at the Inventory numbers, there were 1,991 homes available for sale in May; which was nearly even with April as well as this time last year.
All this information allows us to calculate the Months Supply of Inventory, which remains historically low in the most active price ranges below $600,000. Overall, there was a 3.4 months’ supply of inventory in May, which is a 2.1% decrease from April, and a 1.8% decrease compared to May 2015.
What does all this information mean to you, and why should it matter to home buyers and sellers? The lack of inventory and our region’s economic growth will continue to drive home prices higher. Low mortgage rates will also contribute to a steady stream of home buyers. As prices increase, concerns of affordability are starting to make headlines. If you are thinking about buying, now is the time to get pre-qualified for a mortgage and start your home search.
Trust the experts at Dickson Realty to get you the information you need, when you need it. We are ranked the number one real estate company in the Reno, Sparks, Lake Tahoe market, and we’ve been assisting buyers and sellers in northern Nevada for over 40 years.
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