Let’s review the Reno-Sparks housing market activity, comparing month over month residential real estate market activity from February to March 2017, and comparing year over year to March 2016.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes and condos in the Reno/Sparks area increased 2.4% from $297,000 in February to $304,000 in March. When we compare this price to a year ago, we see a 9.4% 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 mainly by sustainable economic growth and new jobs.
The number of homes sold increased by 38.6% in March, with 625 sales versus 451 in February. Despite this large increase, year over year, there was actually a decrease of 6.6% in sales of single family homes and condos. The increase in sold units is due in part to more new listings coming on the market as we move into the spring selling season.
There were 787 new listings on the market in March, which was a 30.9% increase from February. However, there was a 10.1% decrease in the number of new listings compared to March 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 in affordable price ranges are offered for sale in the region.
As we look at the Inventory numbers, there were 1,820 homes available for sale at the end of March, which was a 3.4% decrease from the 1,884 in February. Comparing year over year numbers, a 13.3% decrease in inventory was seen since March last year.
All this information allows us to calculate the Months Supply of Inventory. Overall, there was a 1.7 months supply of inventory in March. This was a 31.3% decrease from February, and is still very much in Seller’s Market territory. The year over year inventory comparison saw a decrease of 1.1%. 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 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.
Dickson Realty Market News April 24, 2017 from Dickson Realty on Vimeo.
