Let’s review the Reno-Sparks housing market activity, comparing residential sales from December 2016 to January 2017, and comparing year over year activity to January 2016.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes and condos in the Reno/Sparks area decreased .5% from $289,000 in December to $287,500 in January. When we compare this price to a year ago, we see a 10.8% increase, validating a continued healthy market. While the year over year increases are beginning to impact affordability, it is important to note these increases are being fueled by sustainable economic growth and new jobs created by existing companies that are expanding in addition to many companies moving to our region.
The number of homes sold decreased by a notable 30.2% in January, with 411 sales versus 589 in December. Year over year, there was also a decrease of 12.2% in sales of single family homes and condos.
There were 436 new listings on the market in January, which was a 16% increase from December. However, there was a 24.7% decrease in the number of new listings compared to January of last year. Current demand for homes continues to outpace the supply, especially in price ranges below $500,000, and we expect a seller’s market to remain until more homes are offered for sale in the region.
As we look at the Inventory numbers, there were 1,609 homes available for sale at the end of January, which was an 11.6% decrease from the 1,821 in December. Comparing year over year numbers, a 12.4% decrease in inventory was seen since January last year.
All this information allows us to calculate the Months Supply of Inventory. Overall, there was a 3.9 month supply of inventory in January. This was a 26.6% increase from December, and is still in Seller’s Market territory. The year over year inventory comparison remained relatively equal, with just a small decrease of .2%. 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. Although mortgage rates have crept up in recently, we still have historically low mortgage rates, which will contribute to a steady stream of home buyers. As prices increase, concerns of affordability will 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 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.
