If you’re looking for a local insider update on Reno and Sparks real estate trends, your search stops now. In July 2022, housing prices dropped slightly, inventory levels grew, and homes took longer to go into contract. With these factors coming into play, the Northern Nevada market continued shifting away from an intense last few years.
This may be unsettling for homeowners, who are used to having the upper hand and getting more than 100% of their original asking price. But don’t worry. In July 2022, mortgage rates pulled back from a high of nearly 6%, which allowed more buyers to enter the market. And, because buyers can afford more when rates are low, homeowners had more opportunities to get the most value for their homes in Northern Nevada.
Before we dive into some local stats, it’s critical to understand that this isn’t a repeat of the financial crisis we saw from 2007 to 2009, caused by the proliferation of high-risk mortgages and lending practices that no longer exist. This Whittier Trust graph shows that our housing and financial markets look much different now.
If you still have questions about how mortgage rates, housing prices, and economic factors affect Reno and Sparks’ real estate trends, keep reading.
With Balance Comes Opportunity: Get Ahead Of Reno-Sparks Real Estate Trends
How much did the average home cost?
In July 2022, the median price for a home was $574,510, a 4.2% decrease from the previous month but a 13.2% increase from the previous year. While this number represents a slight home price drop for real estate in Reno and Sparks, experts say it’s unlikely that prices will drop in any significant way nationwide anytime soon. It’s also important to understand that home price fluctuations react differently depending on factors such as the region’s underlying population growth, income, area size, and construction costs.
How many homes sold?
In July 2022, 425 homes sold, representing a 7.2% decrease month-over-month and a 34% decrease year-over-year. This may seem low, but the main driver behind home sales is demand, and with higher mortgage rates and 41-year-high inflation, more buyers have taken the wait-and-see approach. But this doesn’t mean demand is going anywhere, especially as the market continues returning to normalcy and more inventory becomes available.
Another excellent indicator that home sales have stabilized is the number of days it takes for a home to go into contract. In July 2022, it took 25 days for a home to go into contract, a 78.6% increase since June and a 316.7% increase from July 2021. Again, this percentage may seem high, but it remains historically low compared to years before the pandemic. In a balanced market, homes typically go into contract within 30 to 60 days.
How many homes came on the market?
Since Reno and Sparks real estate trends are constantly changing with an influx of listings, we use active inventory as a more dynamic metric to provide buyers with a better picture of available homes for sale in a given month.
In July 2022, 1,348 homes were available for sale, up 9.1% from June 2022 and 157.7% from July 2021. While this year-over-year change is significant, this is also a good indicator that supply is returning to pre-pandemic levels, similar to what we saw in July 2018 and July 2019.
To get an even deeper understanding of supply, we also look at the number of new listings that come into the market every month. In July 2022, there were 687 new listings, a 20.7% decrease month-over-month and a 7.9% decrease from the previous year. But, remember that properties can remain in this status for up to 21 days before they become available for showings.
How was buyer demand?
If you’re trying to gauge demand in the real estate market, one of the best indicators is the number of homes going into contract every month. In July 2022, 433 homes went into contract in Reno and Sparks, representing an 11.3% increase from the previous month and a 24.4% decrease year-over-year. This monthly number indicates buyers have gained more confidence, entering the market as home prices stabilize and inventory grows.
How much did sellers receive for their homes?
During the high point of the pandemic, sellers received a significant amount more than their original asking price. But, now that Reno-Sparks real estate trends show that the market is balancing, buyers have more housing options at their fingertips.
In July 2022, the average sale price for a home was 99.2% of the asking price, a slight decrease month-over-month and a 3.5% decrease year-over-year. These percentages are consistent with pre-pandemic averages—typically, homes sell for about 98.5% of the asking price.
How to use this information to buy or sell a home in Northern Nevada
- Buyers: Reno-Sparks real estate trends on housing prices and inventory levels are stabilizing, which means there are more available and affordable homes. You can use this to your advantage when pursuing homeownership. But even though there have been price reductions, that doesn’t mean prices will drop significantly anytime soon. So, think outside the box to get creative with mortgage rates and contact an experienced REALTOR who can help you find the house of your dreams.
- Sellers: Though mortgage rates can reduce buyer purchasing power and demand, life events create the need, no matter the interest rate. Home sales and housing prices may have slowed down, meaning there is more balance between demand and supply. That said, there are several steps you can take to get your house ready to sell in Reno-Sparks. Contact one of our neighborhood professionals for help understanding the current market conditions and what you can expect when listing your home.
At Dickson Realty, we share monthly updates on Reno-Sparks real estate trends for clients and community members to stay informed. For more information about living in the Northern Nevada region, contact one of our experienced real estate agents today.
