Housing inventory levels remain low nationwide as the second quarter of 2023 ends. As interest rates increase, new purchase applications are beginning to decline—a trend likely to continue in the third and fourth quarters of this year.
Homeowner equity has increased to over $30 trillion, and 40% of all US homes have no property debt. Similarly, delinquency rates are historically low, and homeowners are maintaining high average credit scores, leading to a lack of foreclosures and bankruptcies. Not only is this good for current homeowners, but potential owners also benefit from the market not being flooded with shadow inventory as in 2006-2010.
Dive into the numbers in our Q2 Carson Valley Market Recap Video
Carson City Real Estate Trends
- The Carson City/Carson Valley market saw an increase of 11% in median sales price month-over-month. This brings the median to $519,000, a $21,000 decrease year-over-year.
- 122 homes in the Carson Valley area sold in June, a 16% increase month-over-month but a decrease of 7% year-over-year.
- New contracts continue to trend upward at the end of quarter two. In June, 132 new homes entered contract, a 32% year-over-year increase. At the same time, inventory rates were down to just 201 active homes in June—a 33% decrease from June 2022, which had 302 active homes on the market.
- There were 151 new listings in the Carson Valley area in June. While this is an increase from the 144 new homes that came on the market in May, it is a 28% year-over-year decrease from the 211 new homes that hit the market in June of 2022.
- The average sale price of a home is 99% of the asking price. Combined with the low inventory, this indicates that the Carson City real estate market still firmly favors sellers.
National Real Estate Trends
- Inventory nationwide continues to be at historically low levels. 63,000 new listings came on the market in June of this year, compared to 77,000 in June 2022.
- Delinquency rates are historically low, and homeowners consistently pay mortgages on time. 40% of American homes now have no mortgage debt. This economic downturn hasn’t increased delinquency rates compared to the Great Recession of 2006-2010.
The number of purchase applications in 2023 is nearly equal to the number of applications in 1999/2000. The increasing home interest rates that factor into this are unlikely to drop in quarters three or four this year.