Market Profile Report- November 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 October, 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 increased just 3% from September to October, from $440,000 to $455,000; the better measure is comparing year over year. Here, we see the median price is up by 14% over last year, which is a strong growth rate.
Reno/Sparks REALTORS sold 628 homes in October, which was a 10% decrease from September 2020. However it was a 12% increase from October 2019.
In October, 571 new listings entered the market, which is 8% less than the number of new listings in September. When comparing year over year, the number of new listings went up by 12% from October 2019. Continued inventory shortages will contribute to increases in median price in the coming months.
From September to October, the number of available single-family homes for sale decreased by 18% to 347 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 69%.
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 October, the MSI was 20 days across all price ranges, which is a remarkable 70% reduction from 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.