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.
Click here for a printable version of these charts
Although the temperature is going to be over 100 degrees this weekend, the real estate market, while solid, is not the same hot market of the past two “covid” years. While those were remarkable years for sellers, it was not a healthy or sustainable trend for buyers, particularly first time buyers that are an important cornerstone of a balanced housing economy that feeds the move up market. There are many theories about the real estate market, such as high mortgage rates discouraging buyers or the belief that prices are too high and we are going to see a repeat of the “great housing crash” of 2007 but that is not what we are seeing. It is time to adjust the expectations to the reality of the market.
At the end of the first quarter of 2022, we begin to see the change coming in the pace and price of our housing market. From April on, the frantic pace of the “covid years” began to slow, or fall back to a more normal pace. There were not as many properties closing at significantly over list price and not as many multiple offers. As importantly we begin to see a change in the buyer behavior, almost a pause button. Some buyers believed prices would come down dramatically while others were more measured in their offers and the terms they would close on. You’ll notice the comparisons we are seeing year over year in most cases are not so dramatic which we believe is giving us a window into the next housing cycle.
Click here for a printable version of these charts
Inventory is climbing month over month, which is healthy especially this time of year but like many areas of the country, we are still inventory “light”. In our area, we need to be building more residential units (whether single family houses or condominiums) which is tempered by the high cost of building and land. This is not a new issue but a factor for the last ten plus years. The impact of tight inventories versus demand is reflected in the median price of homes as well as the days on market. June’s median price was not the highest in the past twelve months at $575,000, last year’s median price at this time was at $600,000. We are seeing prices climb month over month and even with more inventory available we believe we will see the median price climb or stay high. The average days on the market to contract remained at 75 days from May to June but dropped 17% reflecting less days on the market compared to year over year. The number of homes sold increased by 7.7% from May and were only off 3.69% year over year, reflecting the change in the market of 2022. Pending sales which are the future sales for July and August were up from May but down almost 36% year over year. Remember, we just need to be thankful for the historic sales of that period but move on.
What does all this mean for our area? The Reno/Sparks housing market will not be the best year nor the worst year in real estate but it will be a year that ends in the positive range. We have so many factors that attract new people to our community. The Reno/Sparks’ reputation as a popular destination for outdoor enthusiasts, retirees, and tech industry workers will keep our real estate market moving forward.
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.
