The busy summer selling season is here. Although we anticipate strong demand for new to market listings to continue despite mortgage rate increases, it is likely to also be tempered when compared to the recent past. Sellers should have a realistic pricing strategy in mind when going to market with their homes. Here is the latest info on the single-family home market in the Reno/Sparks area.
As of June 1st, 2022, there were 749 homes available for purchase, which is an increase of 46% from last month! There was also an increase of about 180% in standing inventory for the region compared to this time last year. Buyers have more choices and a little more breathing room to make informed decisions before submitting offers.
Months or Days of Inventory is the amount of time it would take to sell all existing homes for sale if no additional homes entered the market. For homes priced under $400,000, we have 11.8 days of standing inventory in Reno/Sparks. For homes in the range of $400,000 to $700,000, inventory is about 1 month, or 60% more than that of last month at this time.
For inventory of homes priced in the mid to upper price ranges:
- We have 2.4 months of inventory in the $700,000 to $1,000,000 price range
- Inventory in the $1,000,000 to $1,500,000 price range is 2.8 months
- For homes priced over $1,500,000, we have nearly a 3.9 month supply
Sellers typically have a greater negotiation advantage when the supply of inventory is low. A five to six month supply of homes historically represents a balanced market, where neither buyers nor sellers have an advantage.
As of May 31st, our region has had 2,295 home sales so far this year. That is 3% less than the 2,374 sales we had at the end of May 2021, so we are starting the new year at a very good sales pace. Breaking down the home sales through the first five months of this year, we see that:
- 69.6% of sales were under $700,000
- 19% of sales were between 700,000 and $1,000,000, and
- 11.4% of sales were over $1,000,000.
Mortgage rates have been increasing for some time now, so be sure that you have recently been pre-qualified by a lender to understand how much house you can afford. A professional real estate agent with negotiation and market expertise is as important now as it has ever been, whether buying or selling.
If you have any questions about this report or would like to take a deeper look into the market conditions of your neighborhood, please reach out. It would be a pleasure to assist you.