Market Profile Report- September 2020
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 August, 2020.
Buyer demand is remarkable in nearly every price range and is a major contributor to the continued rise in prices. The median price in Reno/Sparks increased 2.5% from July to August, from $434,000 to $444,900. When comparing year over year, the median price is up by 11.5% over last year, which is a strong growth rate.
Reno/Sparks REALTORS sold 649 homes in August, which was a 13% decrease from July 2020, and a 4% increase from August 2019.
In August, 669 new listings entered the market, which was nearly unchanged compared to the number of new listings in July. When comparing year over year, the number of new listings went down by 11% from August 2019. This is contributing to the inventory shortages, and is expected to help drive median price up in the coming months.
From July to August, the number of available single-family homes for sale decreased by 17% to 462 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 66%.
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 August, the MSI was 27 days overall, which is 67% 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.
