Market Profile Report- October 2020
Here’s the latest information on the Reno/Sparks real estate market. Our analysis focuses on single family home activity in the region for the month ending September, 2020.
Buyer demand is remarkable in nearly every price range and is a major contributor to the continued rise in prices. Although the median price in Reno/Sparks decreased 1% from August to September, from $444,900 to $440,000, the better measure is comparing year over year. Here, we see the median price is up by 11% over last year, which is a strong growth rate.
Reno/Sparks REALTORS sold 686 homes in September, which was a 5% increase from August 2020, and a 18% increase from September 2019.
In September, 614 new listings entered the market, which is a little less compared to the number of new listings in August. When comparing year over year, the number of new listings went up by 10% from September 2019. Continued inventory shortages will contribute to increases in median price in the coming months.
From August to September, the number of available single-family homes for sale decreased by 8% to 425 homes. Since April we have seen a steady decrease in active homes for sale. The year over year number of available listings decreased by an incredible 67%.
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 September, the MSI was 24 days overall, which is 69% lower than the supply we had a year ago. A five to six 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 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 very 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.