Reno and Sparks real estate news is constantly changing as inventory levels, housing prices, and home sales fluctuate. We know that uncertainty can be challenging for buyers and sellers to navigate. That’s why we provide monthly market updates to explore the key factors impacting our market and the trends our expert Realtors are seeing.
Here’s what you should know.
- Since the beginning of 2022, increasing mortgage rates, housing prices, and living costs have been a topic of discussion. It’s no secret that the Russian invasion of Ukraine at the end of February caused worldwide instability in the global financial markets.
- Although it is still unclear how this conflict will continue to affect the U.S. housing market, energy prices have skyrocketed, oil prices have soared to over $110 a barrel, and mortgage rates dropped below 4% in the most significant one-week drop in nearly two years.
- In the coming months, this fluidity in the world economy could change homebuyer attitudes in various ways. For example, they could become more apprehensive about making a big purchase or take advantage of the lower mortgage rates.
So what does that mean for our local market in Northern Nevada and California?
The most recent data comes from February 2022 and demonstrates that home showings in Reno and Sparks increased by 112% month-over-month. Although housing prices decreased by less than 2%, there were fewer listings to choose from, which drove more demand and competition back into the market.
If you’d like to learn more about buying or selling a home in Northern Nevada, keep reading.
Reno/Sparks Real Estate News Update: Housing Prices Down, Demand Up
Northern Nevada Home Prices Dropped Slightly
If you’ve been paying attention to the Reno and Sparks real estate news, you know there was a jump in housing prices at the beginning of 2022. However, in February 2022, the median price for a home dropped to $559,000, representing a 1.9% decrease month-over-month. Although this drop should provide some relief for home buyers, housing prices remain 24.2% higher than the previous year. With the warmer spring and summer months quickly approaching, we expect the market to get hotter.
There Were More Available Homes Than the Previous Year
If you’re searching for a home to purchase, it’s essential to know that whenever a seller lists a home for sale, it’s considered inventory—regardless of the status. We use a dynamic metric called “active inventory” to give buyers a clearer picture of how many available listings.
In February 2022, there were 230 homes available for sale in Reno and Sparks, representing a 16.4% decrease month-over-month but a 17.4% increase year-over-year. In the previous year, 190 available homes were for sale, which was a record low for the region, and it caused housing costs to start surging. Typically, active inventory levels range from 600 to 1000.
Fewer Sellers Listed Their Homes for Sale
To get an even better read on Reno and Sparks real estate news, we look at the number of new listings that come to the market every month. In February 2022, there were 372 new homes listed for sale, representing a 7.5% decrease month-over-month and a 4.1% decrease year-over-year. Since fewer properties were listed, buyers became more competitive and eager to view available homes.
Home Sales Decreased with Seasonal Trends
In February 2022, 372 homes sold in Reno and Sparks, down from 402 in January 2022 and 388 in February 2021. This graph shows the decline in home sales is consistent with seasonal trends and averages about the same compared to previous years. However, as mentioned above, we can expect an increasingly active market for the remainder of the first quarter of 2022.
New Housing Contracts Outpaced Supply
We measure demand by the number of homes that go into contract in any given month. In February 2022, 479 homes went into contract, representing an 8.4% increase month-over-month and a 16.3% increase year-over-year. With this rise in mind, it is clear that the Reno and Sparks real estate market is approaching a busy season faster than in previous years.
To measure just how fast the market is moving, we also look at the number of days it takes for a home to go into contract. In February 2022, it took five days for homes to go into contract, 28.6% faster than the previous month and 16.7% faster than in February 2021.
Sellers Received More for Their Homes
As we mentioned above, the market is moving at an accelerated rate. This, combined with fewer homes for sale month-over-month, is driving demand. As a result, sellers are receiving more than their listing price, which has been a trend since the pandemic.
Our Reno/Sparks real estate news update for January 2022 reported that asking prices dropped below 100%. In February 2022, the average asking price for a home was 100.3%, representing a slight rise month-over-month but a 1.4% decrease from the previous year. And while asking prices aren’t close to where they were in the Spring quarter of 2021, we expect percentages to increase as we near the end of Q1 2022.
Reno And Sparks Real Estate News Advice for Buyers And Sellers
- Buyers: Mortgage rates have fluctuated in response to the geopolitical conflict in Eastern Europe, which you’ll want to pay close attention to in the upcoming months. Now is the time to get your finances in order. If you wait too long to get preapproved for a loan, a more qualified buyer could swipe the home you want right out of your hands. Housing prices in Reno and Sparks have also dropped slightly, but we’re expecting them to rise again as the warmer months embrace the Northern Nevada region.
- Sellers: Homes in Northern Nevada remain in high demand, which means you still have the upper hand in negotiations and the final sales price. We also know that the market is accelerating, and homes are going into contract in less than 10 days. So, if you contact one of our neighborhood experts, we can help you find the right buyer and get the most out of your home. You’ll want to act now with housing prices dropping slightly in February 2022.