Market Profile- January 2021
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 December, 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 almost no change from November to December, at $449,800; 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 550 homes in December, which was a 9% decrease from November. However, it was a 6% increase from December 2019, and a record for home sales in the month of December.
Only 309 new listings entered the market in December, which is 20% less than the number of new listings in November. When comparing year over year, the number of new listings increased by 14% from December 2019.
From November to December, the number of available single-family homes for sale decreased by 27% to 203 homes. Since April, we have had a steady decrease in active homes for sale. The year over year number of available listings decreased by an incredible 75%. 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 December, the MSI was 11 days across all price ranges, which is a remarkable 76% 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 are very real, so it is 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.