While the Reno housing market recently set records for its median sales price, the area’s standing inventory is growing, giving buyers more options this summer. Here are five things you need to know about buying or selling a home in the Reno housing market right now.
1. The median sales price is up in the Reno housing market and Sparks
For the first time, the median price of a home in the combined Reno-Sparks housing market hit the $500,000 mark. If you had asked me before the pandemic when we might have seen this in the Reno housing market, I would’ve ventured to guess in 2023 or, more likely 2024. So, the fact we’re seeing this record set in 2021 is incredible.
The median price increased by 1.5% month over month and more than 25% in one year. For example, in May 2020, the median home price in the Reno housing market was $399,900, and in May 2021, it is $102,000 higher at $502,000.
This rise has many people asking our agents if this trend is sustainable. While I don’t think the market will see a drastic shift as we did during the Great Recession, we may see the appreciation of prices slow down in the coming months. However, I believe consistently high demand will continue to buoy the median price and drive a more gradual increase.
2. Sellers are still receiving more than the listing price for their homes
To understand how many offers sellers receive and if those offers are above the original list price, our Dickson Realty agent Amy Shocket has created this over ask analysis. It shows the average percentage of over ask offers that are coming on the market. In May 2021, we saw another increase as this average rose to 103.6%, up 0.7% from April 2021 and 4.7% from May 2021. In previous years, this number stood between 98 and 99% on average.
While the market remains strong for sellers, anecdotally, our agents report that it’s now taking up to five days to get into contract on a home rather than the two or three days we saw a few months ago. The number of offers on a home is also slightly dropping. This anecdotal information likely reflects an increase in standing inventory that can keep up with demand.
3. More homes are coming on the market for buyers in the Reno housing market
In May 2021, 589 new listings came to the market. While this decreased from April 2021 and May 2020, it’s also interesting to look at the standing inventory. While new listings only account for the homes that were put up for sale in that particular month, standing inventory accounts for all the homes on the market, no matter when they were listed. As of this report, there are 278 homes on the market for sale, which is a 51% increase from our standing inventory in March 2021. This rise indicates that we are seeing a slight shift in the market that could favor buyers.
4. Demand continues to drive the Reno housing market
We can examine the demand for housing in the Reno/Sparks market by looking at the number of homes that sold or went into contract in a particular month. In May 2021, 606 homes went into contract, an increase of 7.6% from April 2021 and 1.2% from May 2020.
At the same time, 535 units sold in May 2021, which while that number is a decrease from April 2021, it was a significant increase from May 2020 at 32.4%.
This seasonal increase is something that we expect to see as the temperatures get warmer and people are more open to moving. Usually, we will see this summer trend peak in July and August.
5. Homes are staying on the market for less time than last year
Our days on the market remained steady at 55 days compared to April of 2021, but this is also a marked decrease from May 2020 and 2019. Throughout this summer, I think we’ll continue to have short days on the market for most homes that come on the market and are priced well.
What To Do With This Information…
If you’re thinking about selling your home, now is the time to take advantage of high demand and fast market times. The increase in standing inventory can be a benefit if you’re concerned about finding a new home to live in once you sell your current property. An expert agent can help you navigate the various options available to you. Our Dickson team can help you sell your current home and find a new home while minimizing the disruption to your life.
As more homes enter the market this summer, you need to be ready to pounce on the one that you love. While we may be seeing a very slight softening in market conditions, having a pre-approved mortgage and an experienced Realtor by your side can make all the difference.