Let’s take an in depth look at the Reno-Sparks housing market activity, comparing June to July 2016 activity, and also to activity from July 2015.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes in the Reno/Sparks area increased 1.6% to just under $317,000 in July. When we compare this to a year ago, there was a healthy 9.3% increase, validating a strong market locally. While the year over year increases are beginning to impact affordability, increases in value are being fueled mainly by sustainable economic growth and jobs in our region.
The number of homes sold decreased modestly from 659 in June to 566 in July, which was a 14% decrease when comparing month over month. There was also a decrease of 12.7% when comparing year over year data. The decrease in both monthly and yearly unit sales is believed to be caused by our regional inventory shortage.
There were 713 new listings on the market in July, which is a 13.5% decrease from June as well as an 11.1% decrease compared to July 2015. The current demand for homes continues to outpace the supply and we’ll continue to experience a strong seller’s market in the affordable price ranges until more homes are offered for sale in the region.
As we look at the Inventory numbers, there were 2,144 homes available for sale in July; which was a 4.7% decrease from June. Although there was an increase of 1.5% year over year, the difference is only 31 listings.
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 3.8 months supply of inventory in July, which is an 11% increase from June, but still about half of what is needed for a healthy, balanced market. The National Association of REALTORS considers 5 to 6 months of inventory to be a healthy housing market, where neither buyers nor sellers have a distinct advantage.
What does all this information mean to you, and why should it matter if you are a home buyer or seller? 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 continue 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.
Whether you are buying or selling, talk to a Dickson Realty neighborhood expert first. Dickson Realty agents have the best tools, training and leading technology to stay in tune with the market.
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.
Dickson Realty Market Trends- Market News August 18, 2016 from Dickson Realty on Vimeo.
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