Market Profile Report – March 2021
Here’s the latest information on the Reno/Sparks real estate market. Our analysis focuses on single-family home activity in the region for the month ending February 2021.
Buyer demand is remarkable in nearly every price range and is a major contributor to the continued rise in prices. Although the median price in Reno/Sparks had almost no change from January to February, at $450,000; the better measure is comparing year over year. Here, we see the median price is up by 14.6% over last year, which is a strong growth rate.
Reno/Sparks REALTORS sold 381 homes in February, which was a 1% increase from January, but a 17% decrease from this time last year. The decrease in sales is largely attributed to a lack of inventory.
In the month of February, 450 new listings entered the market, which is 18.4% more than the number of new listings in January. When comparing year over year, however, the number of new listings decreased by 16% from February 2020.
From January to February, the number of available single-family homes for sale increased by almost 12% to 190 homes. This marks the first month with an increase in inventory since April 2020. The year-over-year number of available listings decreased by an incredible 63.6%. We expect that continued inventory shortages will put additional upward pressure on home prices in the coming months.
The Months Supply of Inventory (MSI) represents how many months it would take to sell all the homes currently available if no additional homes entered the market. As of the end of February, the MSI was 10.6 days across all price ranges, which is a remarkable 64% reduction from the supply we had a year ago. A five to six month inventory is considered a healthy and balanced market, where neither buyer nor seller is favored.
How does this information help if you are looking to buy or sell a home? If you need to move, this is an excellent time to sell with very little competition. For buyers, today’s record low interest rates may make this a great time to purchase, however, the inventory shortages and fast market times are very real, so it is important to be pre-qualified with a lender before looking at homes.
As always, if you have any questions about this report or the real estate market in our region, please reach out. It would be a pleasure to assist you.
