Reno/Sparks Market Report
This report will help you stay informed for your buying and selling decisions by breaking down the numbers and finding the trends.
We believe we have finally reached late spring, early summer in Northern Nevada and California. Although inconvenient to have to live with the unusual spring thunderstorms, we must remember we welcome precipitation and water, anytime and in any form.
The current real estate market in Northern Nevada and California is behaving more ”normally” when we compare sales results to pre covid years. As you can see from our market statistics, inventory, while still low in most listing categories, it is increasing. Listings went into the first of the year comprised by incredible snow levels from Thanksgiving on. Even though we have had an increase in listings from the previous month of 12.6%, we have seen an increase in our median sales price by 2.9% due to supply and demand. Days on the market have also decreased by 13.8% despite fluctuations with interest rates as a direct result of supply and demand in our area.
As we continue reviewing our local market, the number of sales in May also increased by 11.7%. In some cases, we are seeing well priced and presented listings receiving multiple offers which is all positive news.
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. It is a great marker to understand supply vs. demand in real estate and whether it’s a more favorable buyer’s market or seller’s market. A five to six month supply of homes historically represents a balanced market, where neither buyers or sellers have an advantage.
We currently have over a 6 month supply of homes in the $1,500,000+ price range compared to April of 2023, when our supply was 5.1 months. Interestingly, the majority of sales (65%) have occurred in the $400,000 – $700,000 range in our region in May and in April of this year. For that price range, month’s supply of inventory has only increased by 4 days month over month. The Reno-Sparks Median Sales Price is currently $555,000.
The challenges we face affect young people and young families being able to afford their first home, which creates the move up market over time. Luckily, the federal government did not touch the interest rates this week but there is the possibility of the federal government raising interest rates later this year to tame inflation.
Upon examining the statistics in May of 2023, it is evident that the demand in the market is gaining momentum as schools get out for summer and the weather is finally cooperating.
If you have any questions about this report, real estate in our region, or the value of your home, don’t hesitate to reach out. It would be a pleasure to assist you.