If you read our last blog on the “crazy” leaving the Reno Sparks real estate market, then you know that housing prices and supply are beginning to stabilize.
This stayed true in August 2021, when the market continued to shift from the beginning of the year. Active inventory is up, and the rate at which median prices are increasing is slowing, which many buyers will appreciate. While the median home price increased month-over-month, the rate of increase slowed to 1%—a decrease compared to June when we saw a more than 5% increase month-over-month.
We’re still experiencing an influx of cash buyers from people looking for homes and a better quality of life in Northern Nevada. With historically low mortgage rates—the average is now less than 3%—buyers have more purchasing power to access the standing inventory returning to the market, creating more options.
Will The Reno Sparks Real Estate Market Cool Off In Fall?
As summer temperatures dissipate, it’s also likely that the Reno Sparks real estate market will cool off from record highs in the summer. To understand what might be coming this fall, let’s look at what happened in August 2021.
Median Sales Prices In The Reno Sparks Real Estate Market Increased By 1%
In August 2021, the median sales price for the Reno Sparks real estate market stood at $530,000, representing a 1% increase month-over-month and a 19.8% increase year-over-year. Although this may indicate that housing prices are on the rise once again, we expect prices to stay the same or decrease slightly for the remainder of the year due to more inventory coming online.
New Listings Decreased While Active Inventories Grew
Since the beginning of the year, active inventory has gradually increased in the Reno Sparks real estate market. In August 2021, there were 718 new listings, which is a 4.4% increase year-over-year. There were also 482 active homes for sale, representing a 16.1% increase month-over-month and a 4.3% change from August 2020. With more options, buyers may also have a little more leverage for homes in Northern Nevada.
Demand Remained Strong For Homes In The Reno Sparks Real Estate Market
We track the number of new homes that go into contract in a given month to measure demand. In August 2021, there were 639 new contracts in the Reno Sparks real estate market, representing a 12.5% increase month-over-month and a 14.2% decrease year-over-year. This further shows that demand is strong but not as frenzied as last year, when consumers flocked to the real estate market out of desperation and urgency.
The number of days it takes for a home to go into contract has also decreased dramatically since last year. With shorter contingency periods, the market is moving at an accelerated rate. In August 2021, the number of days it took for a home to go into contract was 16, a 13.4% increase month-over-month but a 50% decrease year-over-year.
Over Asking Prices Declined Slightly On The Charts
Since the beginning of the year, more homes in the Reno Sparks real estate market have sold above the original listing price. This is due to low inventory levels, cash buyers, and increased housing prices. To understand how many homes sold for more than the asking price and by what percentage, we calculate the average sales price divided by the final asking price to measure the increase.
In August 2021, the over-asking price was 102%, representing a slight decrease month-over-month and a 2.6% increase year-over-year. This percentage has been gradually decreasing from a record high of 103.6%. Typically, the average sold price vs asking price ratio for homes in Northern Nevada is about 99%.
Fewer Homes Were Sold As Some Urgency Left The Market
In August 2021, there were 552 homes sold in the Reno Sparks real estate market, which is a 13.8% decrease month-over-month. This number also shows a 16.1% decrease year-over-year due to the surge of people buying and selling homes after the economic shutdown.
However, with the recent expansion of inventory and housing prices starting to stabilize, experts predict that demand will return to its usual cooling-off period in the fall.
The Reno Sparks Real Estate Market Maintained Its Fast Pace
Days on the market is an excellent tool for showing changes to the Reno Sparks real estate market over several years, and sellers can also use this information to know how long it will take to sell their homes. In August 2021, homes stayed on the market for 54 days before selling, that’s 21 days shorter than last year and 32 days down from July 2019.
How To Use This Information For Your Benefit
- Sellers: Demand for houses in the Reno Sparks real estate market is still in your favor. So, if you’re thinking about selling your home, now is the time to act. As inventory levels continue to grow, buyers have more options, which may reduce home sale prices. You’ll also want to take advantage of the increased over-asking prices to get the most for your home. And with more options available, one of our neighborhood experts can help you find a new home once your sell your current property.
- Buyers: While there’s more standing inventory and less competition for homes, it’s time to get your finances in order. If you wait too long, then you might miss out on the home of your dreams. This is an excellent time to work on your credit score and get pre-approved so that you can move quickly and meet the speed of the market. You’ll also want to take advantage of the record-low mortgage rates, which have helped demand, but these low rates won’t last forever.
