Since the beginning of the year, the housing market in Northern Nevada has continued to move towards healthier supply and demand levels. In August 2022, the median price for a home in Reno-Sparks dropped slightly, more units sold, and contract time frames increased. With these factors combined, a theme of stabilization has appeared, benefiting buyers and sellers alike.
And while it’s true that mortgage rates have nearly doubled since 2021—from 2.86% to nearly 6% for a 30-year fixed rate—most experts predict that rates may not get much higher for the remainder of the year. So, for those who have felt the squeeze of fast-rising home prices and higher mortgage rates, you may start to feel some relief before the end of the year.
If you want to know more about what happened in August 2022 and what to expect as the housing market in Northern Nevada heads into fall, keep reading.
Your End Of Summer Update For The Housing Market In Northern Nevada
Median Home Prices Down
In August 2022, the housing market in Northern Nevada had a median home sale price of $565,686, representing a 1.5% decrease month-over-month but a 6.7% rise year-over-year. Though housing prices have started to cool from record-breaking highs in April 2022, this slight drop is about half the monthly change we saw from June to July 2022. With fall approaching and seasonality coming into play, it is likely that housing prices will continue stabilizing.
More Homes Sold in August 2022
When mortgage rates rise, buyers often take the wait-and-see approach, which can affect home sales, similar to what we saw in July 2022. But now, after a few months of increases, buyers have gained more confidence or found ways to creatively cope with Nevada mortgage rates. In August 2022, 437 homes sold, representing a 1.9% increase from the previous month. This number also shows a 22.2% decrease from the previous year, which is to be expected as the market continues returning to normalcy.
Contract Time Frames Increased
Another excellent indicator that home sales are stabilizing is the number of days it takes for a home to go into contract. In August 2022, it took 32 days for a home to go into contract, a 28% increase month-over-month and a 433.3% increase year-over-year. Again, this percentage makes for great headlines in the media and 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.
Available Inventory Down 8.1% Month-Over-Month
Since the housing market in Northern Nevada is constantly changing with an influx of listings, we use active inventory as a more dynamic metric to provide a better picture to buyers of available homes for sale in a given month.
In August 2022, 1,298 homes were available for sale, down 8.1% from July 2022 but up 117.4% from August 2021. Though this monthly decrease is an indicator of seller uncertainty in the market, it is essential to remember that current inventory is consistent with pre-pandemic levels. Typically, active inventory levels range from 600 to 1,000.
Fewer Properties Entered The Market
Aside from active inventory, we look at the number of new listings that enter the housing market in Northern Nevada monthly. In August 2022, 596 new properties were listed, which represents a 15.8% decrease month-over-month and a 20.2% decrease year-over-year. This number shows the stabilization we mentioned above, causing housing supply and demand to balance.
Demand Remained Steady
One of the best indicators to measure demand is the number of homes that go into contract every month. In August 2022, 535 homes went into contract in Reno and Sparks, up 121 from July 2022 but down 80 from August 2021. This monthly rise in demand is an excellent indicator that overall homebuying sentiment has improved since the previous month.
Offers On Homes Returned To Normal Percentages
During the high point of the pandemic, sellers received a significant amount more than their asking price. However, now that buyers have more housing options at their fingertips, this trend has started to change.
In August 2022, the average sale price for a home was 98.3% of the asking price, a slight decrease from the previous month and a 3.5% decrease from the previous year. Though these percentages are consistent with pre-pandemic averages, sellers should be prepared to receive offers near or slightly lower than their original asking price.
What To Do With This Information
Buyers: Housing prices and inventory levels are stabilizing, which means there are more available and affordable homes. While you can use this to your advantage when pursuing homeownership, housing prices and mortgage rates aren’t expected to drop significantly anytime soon. So, now’s not the time to have the homebuying jitters. Contact one of our neighborhood experts to help you find the house of your dreams.
Sellers: Buyers are starting to negotiate more in the market. So, before setting your asking price, it is important to consider the location, age, size, and condition of your property. You should also consider prevailing market conditions. By following our tips for getting your home ready to sell right now, you can increase the value of your home and appeal to the maximum number of buyers.
At Dickson Realty, we share monthly updates for the housing market in Northern Nevada. If you’d like to learn more about buying and selling real estate in Reno and Sparks, contact one of our REALTORS today.
