In the second quarter of 2024, the Reno-Sparks real estate market saw a decrease in demand, increased active inventory, and increased median home prices. Together, these shifts demonstrate a stabilization of our market and a return to some pre-pandemic norms.
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National Market Trends
Nationally, we’ve observed an uptick in active inventory—up 28% from last year—signifying a shift from the low levels we saw during the post-pandemic years. The increase in inventory may impact pricing trends, both locally and nationally.
Local Market Performance
Pricing Trends
In June 2024, the median home price in the Reno-Sparks area increased to $600,000, a price we haven’t seen since April 2022. Although we haven’t hit the peak of $615,000 from May 2022, this appreciation over the first half of the year indicates a healthy and stable market for sellers. The critical question is whether this trend will continue as inventory increases.
Demand and Sales
The demand for homes has seen a slight decline. Last month, 403 homes sold, down 4% from the previous month and 9% year over year. This trend is also reflected in new contracts, down 13% month over month and more than 14% year over year.
Mortgage rates have been gradually increasing, which might contribute to the softening in demand. If interest rates decrease, more buyers can purchase homes at each price point, potentially increasing demand and the median home price in our region.
Inventory Levels
As of June 2024, new listings stayed on par with those in 2023—559 this year versus 557 last year. Our active inventory at the end of June was 847 homes, a 16% increase month over month and a 19% increase year over year. This inventory growth is not necessarily from a flood of new homes but instead driven by the softening of demand.
The near doubling of active listings on the market since the beginning of the year could indicate a return to the pre-pandemic level of 1,200 to 1,400 active homes in our region.
Market Dynamics
The current market dynamics suggest a stabilization phase. The days to contract remain relatively quick, averaging 20 days, slower than the rapid timeline we saw in 2020 and 2021 but faster than the average of 30 to 45 days before the pandemic. Sellers are getting close to their asking prices, with a ratio of 99.6% of ask-price to close-price, slightly up year-over-year.
Looking Ahead
As we enter the latter half of 2024, several factors could impact the Reno-Sparks real estate market. While there has been a decrease in demand and an increase in inventory, the market remains healthy for sellers. The gradual rise in mortgage rates and the influence of inventory levels on pricing trends underscore the importance of staying informed about the changing real estate landscape. Buyers and sellers can make well-informed decisions in our evolving market by closely monitoring these developments.
