Housing inventory and affordability continue to be topics of conversation locally and nationally. Let’s take a look at what’s happening in the Reno-Sparks market area.
As of June 27th, inventory of homes that are Active and Available increased slightly from the beginning of the month. Despite the small increase, the 1,063 homes currently on the market is down 25.3% from the 1,423 on the market at this time last year. Sixty-nine percent, or 734 of the homes on the market today have asking prices under $600,000.
Now, let’s talk about absorption rate by price range. The Absorption Rate, or Days of Available Inventory, is the amount of time it would take to sell off existing homes for sale if no additional homes came onto the market.
As expected, a strong seller’s market exists in prices below $600,000, often with competing offers in some neighborhoods. For homes priced below $300,000, we have just 20 days of inventory, emphasizing the great need for more affordable homes in the region. For homes in the range of $300,001-$600,000, available inventory is 62 days, or 2 months. The exceptionally low inventory in these price ranges means it is a great time to sell with little competition, and consider moving up to a higher priced home where more inventory is available.
With an inventory of 6 months, the $600,001 to $900,000 price range represents the most balanced market between buyers and sellers. In the territory above $900,000, the market begins a shift to favor the buyer. The months of inventory sits at 10 months for properties in the $900,000 to $1,500,000 range. For homes priced over $1,500,000, we have a 3 YEAR supply.
It is good to remember that The National Association of REALTORS considers 5 to 6 months of inventory a healthy market, where neither buyers nor sellers have a distinct advantage.
The typically strong summer selling season is upon us, so let’s look at the Percentage of Sales by price range. Over 92% of all sales this year have been under $600,000, with 47.8% of sales occurring below $300,000, and 45% of sales between $300,000 and $600,000. Only 5.1% of sales this year have been between $600,000 and $900,000. The remaining sales, or just over 2% of all sales, were over $900,000.
The supply-demand equation continues to drive home prices up in the most affordable price ranges. However, the pace of price increases often depends on a specific neighborhood or area of town. Whether you are considering a move to downsize, move up, or even a move across town, now is a great time to speak with a Dickson Realty agent to discuss your options.
At Dickson Realty, our professional real estate experts have the tools, training and award-winning technology to stay on top of the market. That will help you buy or sell at the right price.
Dickson Realty is ranked the number one real estate company in the Reno-Tahoe region. We’ve been assisting home buyers and sellers for over 40 years. Call one of our offices or your Dickson Realty agent today.
Dickson Realty Market News July 3, 2017 from Dickson Realty on Vimeo.