Market Profile- December 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 November, 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 had no change from October to November, staying at $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 593 homes in November, which was a 6% decrease from October 2020. However it was a 30% increase from November 2019, and a record for home sales in the month of November.
Only 378 new listings entered the market in November, which is 34% less than the number of new listings in October. When comparing year over year, the number of new listings decreased by 12% from November 2019.
From October to November, the number of available single-family homes for sale decreased by 20% to 277 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 72%. We expect that continued inventory shortages will put additional upward pressure on median price in the coming months.
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 November, the MSI was 15 days across all price ranges, which is a remarkable 73% 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.
How does this information help 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.