The busy summer selling season is here. Historically speaking, demand is still strong, but we are starting to experience the effects of higher mortgage rates, global geo-political and stock market instability. Sellers should work closely with a professional REALTOR to establish a realistic pricing strategy when going to market with their homes. Keep reading for the latest info on the single-family home market in the Reno/Sparks area.
As of August 1st, 2022, there were 1,292 homes available for purchase, which is an increase of 12.3% from last month. Although this represents an increase of about 211% in standing inventory for the region compared to this time last year, it is important to remember that we were in a severe housing inventory crisis during 2021. So, an increase in inventory is realistic and is welcomed by buyers and by real estate professionals. Buyers now have more choices and additional time to make informed decisions before submitting offers. This benefits sellers, too.
Months of Inventory is the amount of time it would take to sell all existing homes for sale if no additional homes entered the market. A five to six month supply of homes historically represents a balanced market, where neither buyers nor sellers have an advantage. For homes priced under $400,000, we have 1.4 months of standing inventory in Reno/Sparks, or 93% more than that of last month. For homes in the range of $400,000 to $700,000, inventory is about 2.2 months.
For inventory of homes priced in the mid to upper price ranges, we have:
- 3.6 months of inventory in the $700,000 to $1,000,000 price range
- 3.8 months of inventory in the $1,000,000 to $1,500,000 price range
- 5.8 months of inventory for homes priced over $1,500,000
As of July 31st, our region has had 3,179 home sales so far this year. That is 15.1% less than the 3,659 sales we had at the end of July 2021. A small decrease in sales coincides with increases in mortgage rates. The decrease in sales is not believed to be a long-term problem. Breaking down the home sales through the first six months of this year, we see that:
- 69.8% of sales were under $700,000
- 18.9% of sales were between 700,000 and $1,000,000, and
- 11.3% of sales were over $1,000,000
Mortgage rates have been fluctuating recently, so be sure that you have 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 the state of the real estate market, please reach out. It would be a pleasure to assist you.