Let’s take a look at the Reno/Sparks housing inventory and year to date sales statistics by price range. Demand for affordable housing in Reno-Sparks is high, and supply is low. This creates a challenging environment for home buyers and sellers alike. Here are the details:
As of November 27th, there were 821 homes on the market that were Active and Available for purchase. This is 17% fewer homes than the 990 on the market at the end of October and a staggering 38% fewer than the 1,321 homes on the market at this time last year. Only 64% or 525 of the homes on the market today have asking prices under $600,000. In November 2016, 75% of available listings were under $600,000. About 15% of the homes on the market today have asking prices below $300,000, while 32% of available homes in November 2016 were asking $300,000 or below. It is most definitely a Seller’s Market in these price ranges, which makes it difficult for Buyer’s to purchase.
Now, let’s talk about absorption rate by price range. The Absorption Rate, or Days of Available Inventory, is the amount of time it would take to sell off existing homes for sale if no additional homes came onto the market.
As expected, the strong seller’s market in prices below $600,000 often means multiple or competing offers in some neighborhoods. For homes priced below $300,000, we have only 12 days of inventory, emphasizing the great need for more affordable homes in the market. For homes in the range of $300,000-$600,000, available inventory is 44 days, or about 1.5 months. If you own a home in either of these price ranges, it is a great time to sell with little competition. It is also an excellent time to consider moving up to a higher priced home where more inventory is available.
With an inventory of 4 months, the $600,001 to $900,000 price range represents a more balanced market between buyers and sellers, but still remains in seller’s market territory like the lower price ranges. Once asking prices move above $900,000, the market begins a shift to favor the buyer. The months of inventory is 9 months for properties in the $900,000 to $1,500,000 range. For homes priced over $1,500,000, we have a 26 month or just over 2 year supply.
It is good to remember that The National Association of REALTORS considers 5 to 6 months of inventory a healthy market, where neither buyers nor sellers have a distinct advantage.
The typically strong summer selling season is continuing well into fall, and we are on track for a record breaking year for the number of sales. Let’s take a look at the Percentage of Sales by price range.
91.7% of all sales in Reno/Sparks this year have been under $600,000, with 44.3% of sales occurring below $300,000, and 474% of sales between $300,000 and $600,000. Only 5.9% of sales this year have been between $600,000 and $900,000. The remaining sales, or just 2.4% of all sales, were over $900,000.
The supply-demand equation continues to drive home prices up in the most affordable price ranges. However, the pace of price increases often depends on a specific neighborhood or area of town. Whether you are considering a move to downsize, move up, or even a move across town, now is best time to speak with a Dickson Realty agent to discuss your options.
At Dickson Realty, our professional real estate experts have the innovative tools, training and award-winning technology to stay on top of the market. That will help you buy or sell at the right price.
Dickson Realty is ranked the number one real estate company in the Reno-Tahoe region. We’ve been assisting home buyers and sellers for over 40 years. Call one of our offices or your Dickson Realty agent today.
Dickson Realty Market News December 4, 2017 from Dickson Realty on Vimeo.