The Reno-Sparks Real Estate market continues to stabilize as quarter three wraps up. Similar to the July market update, supply and demand in the Reno-Sparks market are both maintaining at low levels. While low inventory and high-interest rates are keeping the market stable, we’re unlikely to see significant market fluctuations—for better or worse—until external factors adjust.
Demand is slowly increasing, as evidenced by increasing home prices in the area since December 2022. However, even with this increase, demand in the Reno-Sparks real estate market is soft, holding up increased pricing in the area only due to low inventory numbers. If interest rates rise through the remainder of 2023, it’s likely this demand will slowly drop off, and home pricing will decline to maintain stabilization.
Dig into the numbers with me in the August Reno-Sparks real estate market update
What you need to know about Reno Sparks real estate
- The median home sale price in August was $575,000, a 2.3% year-over-year increase.
- 426 homes sold in August, a decrease of 1.6% month-over-month and 5.1% year-over-year. This decrease was expected with the seasonality of the Reno-Sparks market, as fall typically sees lower transaction volumes in any given year.
- In August, there were 411 new contracts and 531 new listings. While new contracts increased by 2.8% and new listings increased by 3.1% month-over-month, these numbers are still lower than historical average. Indicative of low demand, this is helping to stabilize pricing with the low inventory levels in the market.
- Active inventory continues to climb, with 822 homes active in the Reno-Sparks real estate market in August – an increase of 2.4% month-over-month. Year-over-year, however, we’ve seen a 38.7% decrease in active inventory due mostly to the increase in mortgage rates throughout 2023.
- August saw an average of 18 days to contract, which is a positive sign. While we’ve discussed low supply and demand, this number is indicative of enough demand in the market to absorb inventory at a relatively quick pace.
Sellers are currently receiving an average of 98.9% of their asking price, indicative of a stable market.