Market Profile Report – Reno/Sparks – August 2020
Although we are in unprecedented times, we have been surprised by the number of people who still want or need to buy and sell real estate. The buyer demand is remarkable in nearly every price range. We continue to take steps to ensure that we are as safe as possible while bringing new homes to market and showing properties. However, if this is not the right time for you to buy or sell, we certainly understand and will be here when it is the right time for you.
Below is an update on the Reno/Sparks real estate market. Our analysis focuses on single family home activity in the region for the month ending July, 2020.
The median price in Reno/Sparks increased 7.4% from June to July, from $405,000 to $435,000. It is truly the shortage of inventory that is helping to boost median price. When comparing year over year, the median price is up by 7.1% over last year, which is a healthy growth rate.
Reno/Sparks REALTORS sold 735 homes in July, which was a 31% increase from June 2020, and a 21% increase from July 2019.
In July, 665 new listings entered the market, which was nearly unchanged compared to June’s new listings. When comparing year over year, the number of new listings went down by 13% from July 2019. This is contributing to the inventory shortages, and is expected to drive median price up in the coming months.
From June to July, the number of available single-family homes for sale decreased by 15% to 556 homes. Since May we have seen a steady decrease in active homes for sale. The year over year number of available listings decreased by an incredible 58%.
The Months Supply of Inventory (MSI) represents how many months it would take to sell all the homes currently available if no new homes entered the market. As of the end of July, the MSI was 1.08 months overall, which is 60% lower than the supply we had a year ago. A 5 to 6 month inventory is considered a healthy and balanced market, where neither buyer nor seller is favored.
What does all this mean if you are looking to buy or sell a home? If you need to move, this is an excellent time to sell with very little competition resulting in multiple buyer offers in many neighborhoods. For buyers, today’s record low interest rates may make this a great time to purchase, however the inventory shortages and fast market times means it’s important to be pre-qualified with a lender before looking at homes.
As always, if you have any questions about this report or the real estate market in our region, please reach out. It would be a pleasure to assist you.
