The question our agents hear most is this: “When is the best time to buy or sell real estate in Reno and Sparks?”
Since the pandemic, we’ve seen new trends starting and old trends behaving differently, making the market challenging to navigate. In this context, it’s essential to know how seasonality affects the real estate market. Historically, the market slows down in the colder months, and in the warmer months, the market is more active.
But this wasn’t the case in 2020—the economic shutdown created the perfect storm. Sellers were hesitant to sell, and many people were moving from more populated areas searching for space and better quality of life, which caused available inventory to plummet and housing prices to skyrocket across the country.
And although the market is still experiencing some of these pandemic-related changes, there is more active inventory to supply buyer demand, and housing prices are showing signs of stabilization. Keep reading to learn more about what happened in the third quarter and what you can expect going into the upcoming year.
What You Need To Know About Real Estate In Reno and Sparks Right Now
If you’re searching for the latest update on real estate in Reno and Sparks, then you’ve come to the right place. This third-quarter update can help you navigate the current market and prepare for the upcoming year as we head into winter.
Housing Prices For Real Estate In Reno And Sparks Held Steady
In Q3, the median housing price for real estate in Reno and Sparks was at $530,000, which represents a 0% increase month-over-month. This price has remained the same for the last four months, indicating that home prices are finally starting to stabilize. This number also shows a 20.5% increase year-over-year due to the pandemic-driven demand for homes and the other long-term housing constraints. However, as the market continues to balance out, we’re expecting housing prices to start evening out slowly.
New Listings and Active Inventory Grew Year-Over-Year
In September, there were 687 new listings on the market for real estate in Reno and Sparks, down 6.3% from the 733 homes listed for sale in August 2021 but up 7.2% from the 641 listed for sale in September 2020.
On average this month, we have seen about 541 homes available for sale in the Reno/Sparks market. Last year at this time, we had 425 homes, which means active inventory has increased by 27.3% year-over-year.
Demand Started To Stabilize While Options Went Quick
We track the number of new homes that go into contract in a given month to measure demand. In September 2021, there were 600 new contracts in the market, representing a 2.8% decrease month-over-month and a 9.9% decrease year-over-year. Although this may seem like demand is slowing down, this graph shows that it’s more or less starting to stabilize with pre-pandemic numbers.
However, the market is still moving at an accelerated rate. Due to historically low-interest rates and shorter contingency periods, it takes less than 10 days for a home to go into contract. In September 2021, it took eight days on average for a home to go into contract, representing a 33.3% increase month-over-month and a 23.8% decrease year-over-year.
Over-Ask Analysis Continued To Decline Month-Over-Month
The market for real estate in Reno and Sparks has experienced low inventory levels, an influx of cash buyers, and increased housing prices since the pandemic started. This caused bidding wars between buyers and more homes to sell above the original listing price. To understand this trend, we calculate the average listing price divided by the final sales price to measure how many homes sold for more than the listing price and by what percentage.
In September 2021, sellers sold their homes for 101.1% of their asking price on average, representing a 1.1% decrease month-over-month and a 1.4% from September 2020. In the first quarter of 2021, the percentage of the asking price sellers received for homes in Northern Nevada reached a record high of 103.6%.
More Homes Sold As The Summer Ended
In September 2021, 582 homes sold in the Reno/Sparks real estate market, representing a 3.7% increase month-over-month and a 16.7% decrease year-over-year. With 111 more homes sold, September of 2020 was a record month. This was due to the surge of people buying and selling homes after the economic shutdown.
Homes Are Leaving The Market Faster
Days on the market is an excellent tool for showing how real estate in Reno and Sparks has changed over the years, and sellers can also use this information to know how long it will take to sell their homes. In September 2021, homes stayed on the market for 64 days before selling, six days shorter than last year and 22 days down from September 2019.
How To Navigate Real Estate In Reno And Sparks Like A Pro
Buyers: Mortgage rates are still very low which gives buyers more buying power, but these rates won’t last forever. If rates start increasing and home prices drop, then you could end up paying more because of your debt-to-income ratio. So, now is the time to buy and get your finances in order. You should also get preapproved for a loan before making an offer and ensure that you’re paying attention to what’s most important to you.
Sellers: With buyer demand and the speed of the market working in your favor, you’re at an advantage. However, if you’re thinking about selling your home, now is the time to act. As inventory levels continue to grow, buyers have more options, which may reduce home sale prices. And, because there are more options available, over-asking prices for homes are starting to decrease. One of our neighborhood experts can help you find a new home and get the most out of your current property.
