Market Profile- February 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 January, 2021.
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 December to January, at $449,152; 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 376 homes in January, which was a 32% decrease from December 2020, and a 5% decrease from this time last year. The decrease in sales is largely attributed to a lack of inventory.
Only 372 new listings entered the market in January, which is 19% more than the number of new listings in December. When comparing year over year, the number of new listings decreased by 22% from January 2020.
From December to January, the number of available single-family homes for sale decreased by 16% to 170 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 73%. 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 January, the MSI was 9 days across all price ranges, which is a remarkable 74% 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.