Whether you’re buying or selling, the Reno real estate news for October 2021 shows the critical fundamentals about the market that are working in your favor. If you’re a buyer, inventory is on the rise, and demand continues to stay strong if you’re a seller. Because of these reasons, we feel confident that the market is not heading for a sudden shift or change in direction.
It’s always important to consider the big picture when deciding to act in the Reno/Sparks real estate market. Last year at this time, there were only 347 active listings for sale in our region, which means inventory has increased by about 30%. The next thing to consider is that as inventory increases, buyers will have more options, affecting housing prices and demand. However, we know that demand hasn’t slowed down, and the market is still moving at an accelerated rate—it’s now taking less than ten days for a home to go into contract. Mortgage rates are also on the rise and will play a pivotal role in the housing industry for the upcoming months.
So, if you’ve been thinking about buying or selling a home in Northern Nevada, now is the time to decide. For more up-to-date Reno real estate news about how to make those dreams become a reality, keep reading.
Reno Real Estate News For October 2021
We’re sharing another housing market update for Reno and Sparks to help you make the best decision for you and yours as we head into the next month and the upcoming year..
Housing Prices In Reno and Sparks Increased
One of the noteworthy items in Reno real estate news is that in October 2021, the median home sales price increased to a record $540,000. This is a 1.9% increase month-over-month and an 18.7% change year-over-year and represents the first notable shift in the last four months. While we expected housing prices to continue to stay level for the rest of the year, a slight decrease in the number of new listings and active inventory likely contributed to the price increase. We’re still expecting housing prices to even out slowly with seasonality returning to the market and fewer buyers panic-buying due to the pandemic.
Reno Real Estate News Hot Item: More Available Homes For Sale
In October, there were 606 new listings on the market for homes in Reno and Sparks, down 12.6% month-over-month from the 693 homes listed for sale in September 2021 but up 1.2% from the 599 listed for sale in October 2020. One thing to note is that new listings often show a seasonal dip as we head into the winter months, so it’s not surprising to see fewer homes for sale as the temperatures get colder and the holidays arrive.
While it may not be getting enough attention in Reno real estate news items, the amount of active inventory in the Reno/Sparks market increased by nearly 50% year-over-year in October 2021. This substantial increase demonstrates how far we’ve come from 2020.
New Contracts Showed Demand Remained Strong
We track the number of new homes that go into contract each month to measure demand. In October 2021, there were 615 new contracts in the market, representing an 8.5% increase month-over-month and a 3.3% decrease year-over-year. This graph shows that the demand is still there for homes in Northern Nevada. However, the market is showing signs of stabilizing with pre-pandemic numbers.
The number of days it takes for a home to go into contract reflects the strong demand for homes. Due to lower mortgage rates and shorter contingency periods, it takes less than 10 days for an offer to be accepted. In October 2021, it took nine days on average for a home to go into contact, representing a 12.5% increase month-over-month and a 0% change year-over-year.
Over-Ask Offers Continued to Decline
Since the beginning of the year, the Reno real estate news has shown high buyer demand and record-low inventory levels. This caused bidding wars between buyers and homes to sell above the original listing price. To understand this trend, we calculate the average listing price divided by the final sales price to measure how many homes sold for more than the listing price and by what percentage.
In October 2021, the average over-asking price was 100.3%, representing a slight decrease month-over-month and a 0.5% increase year-over-year. Although this number is higher than normal—typically, about 99%—there are more available housing options, causing over-ask percentages and housing prices to stabilize.
Home Sales Catch Up With Pre-Pandemic Numbers
In October 2021, 565 homes sold in the Reno/Sparks real estate market, representing a 4.7% decrease month-over-month and a 10.5% decrease year-over-year. Although the number of homes sold may seem low for the region, this number is significantly higher when compared to pre-pandemic numbers. In September 2018, there were about 450 homes sold, and in October 2019, about 400 homes were sold.
Homes In Reno and Sparks Sold Quickly
We use days on the market in our Reno real estate news as a tool to show how real estate has changed over the years, and sellers can also use this information to know how long it will take to sell their homes. In October 2021, homes stayed on the market for 61 days before selling, 17 days shorter than last year and 34 days down from October 2019.
What This Reno Real Estate News Means For Buyers And Sellers
Buyers: Mortgage rates are beginning to rise from historic lows, which means now is the time to get your finances in order. Getting preapproved for a loan will show sellers that you’re serious about buying as it requires you to send full financial documents to your lender and can provide you with a pre-approval letter. Having cash in hand will also make you a more competitive buyer in a competitive market. Take advantage of low-interest rates now if you can, as it increases your buying power and the amount of home you can afford.
Sellers: It’s no secret that the market has been in your favor since the beginning of the year, and we’re expecting that trend to continue into 2022. But as inventory levels continue to grow and buyers have more options, home prices are starting to stabilize. That’s why it’s essential to understand where the market is now and focus on the big picture. With the help of one of our neighborhood experts, we can help you find a new home while getting the most out of your current property.
