Reno/Sparks Inventory Report: March 2023
As we settle firmly into 2023, we are adjusting to new market realities that have been affected by higher mortgage rates, global geo-political and financial market instability. Historically speaking though, demand is still strong in our region and the outlook is positive, especially when compared to national trends. Keep reading for the latest info on the single-family home market in the Reno/Sparks area.
As of March 1st, 2023, there were 549 homes available for purchase in the Reno/Sparks real estate market, which is a decrease of 20.1% from last month. Despite the monthly decrease, 549 homes available represents an increase of about 140% in standing inventory for the region compared to this time last year; though, it is important to remember that we were still in a severe housing inventory crisis at the beginning of 2022. An increase in inventory is realistic and is welcomed by home buyers and real estate professionals. Buyers now have more choices and additional time to make informed decisions before submitting offers. This ultimately 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 .6 months (18 days) of standing inventory in Reno/Sparks, or 45% less than that of last month. For homes in the range of $400,000 to $700,000, inventory is 1 month.
For inventory of homes priced in the mid to upper price ranges, we have:
- 1.7 months of inventory in the $700,000 to $1,000,000 price range
- 2.9 months of inventory in the $1,000,000 to $1,500,000 price range
- 4.2 months of inventory for homes priced over $1,500,000
Our region had 515 home sales through February 28th, 2023. That is 34.1% less than the 781 sales we had in 2021. A decrease in sales coincides with higher mortgage rates. The decrease in sales is not believed to be a long-term problem. Breaking down the home sales by price range through January, we see that:
- 81.2% of sales were under $700,000
- 12.8% of sales were between 700,000 and $1,000,000, and
- 6% 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 before you begin your search for a new home. If you are selling, you should work closely with a professional REALTOR to establish a realistic pricing strategy when going to market. 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.