Let’s review the Reno-Sparks housing market activity, comparing residential sales in August to September 2016, and comparing year over year activity to September 2015.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes and condos in the Reno/Sparks area increased 2.3% from $289,000 in August to $295,750 in September. When we compare this to a year ago, we see a healthy 11.6% increase, validating a strong market locally. While the year over year increases are beginning to impact affordability in the lower price ranges, it is important to note the increases in value are being fueled mainly by sustainable economic growth and new jobs created by existing companies that are expanding and more companies moving to our region.
The number of homes sold increased slightly in September, with 710 sales versus 703 in August. However, there was a 7.1% increase in sales when comparing year over year data; up from 663 in September 2015.
There were 772 new listings on the market in September, which was a 16.5% decrease from August; while year over year there was a 6.9% increase in the number of new listings. Despite the year over year increase, current demand for homes continues to outpace the supply. We expect a strong seller’s market to remain in the affordable price ranges until more homes are offered for sale in the region.
As we look at the Inventory numbers, there were 2,373 homes available for sale at the end of September, which was an 11% decrease from August. Inventory was relatively flat year over year, with a slight decrease of point 1%; a decrease of only 2 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 3.3 months supply of inventory in September, which is a 12% decrease from August, and approximately half of what is needed for a balanced market. The year over year inventory comparison was also down; from 3.6 months in September 2015 to 3.3 months in 2016. The National Association of REALTORS considers 5 to 6 months of inventory to be a balanced 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 will 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 industry’s 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 News October 24, 2016 from Dickson Realty on Vimeo.
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