Let's review the Reno-Sparks housing market activity, comparing residential sales from October to November 2016, and comparing year over year activity to November 2015. According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes and condos in the Reno/Sparks area increased 0.9% from $292,500 in October to $295,000 in November.
When we compare this price to a year ago, we see a healthy 7.3% increase, validating a strong and market locally. While the year over year increases are beginning to impact affordability, it is important to note these increases are being fueled by sustainable economic growth and new jobs created by existing companies that are expanding in addition to many companies moving to our region. The number of homes sold increased in November slightly, with 590 sales versus 588 in October. Year over year, however, there was an impressive 21.4% increase in sales of single family homes and condos. There were 471 new listings on the market in November, which was a 28% decrease from October. Year over year, there was a very slight 0.4% decrease in the number of new listings.
Current demand for homes continues to outpace the supply, especially in price ranges below $500,000, and we expect a seller’s market to remain until more homes are offered for sale in the region. As we look at the Inventory numbers, there were 2,017 homes available for sale at the end of November, which was a 17.7% decrease from the 2,452 in October. Comparing year over year numbers, we saw a 3.6% decrease in inventory from November last year.
All this information allows us to calculate the Months Supply of Inventory. Overall, there was a 3.4 month supply of inventory in November. This was an 18% decrease from October, which is still in Seller’s Market territory. The year over year inventory comparison also decreased by a hefty 20.6% from 4.3 months in November 2015 to 3.4 months in 2016. The National Association of Realtors considers 5 to 6 months of inventory to be a balanced housing market, where neither buyers nor sellers have a distinct advantage.
What does all this information mean to you, and why should it matter if you are a home buyer or seller? The lack of inventory and our region’s economic growth will continue to drive home prices higher. Although mortgage rates have crept up in recent weeks, we still have historically low mortgage rates, which will contribute to a steady stream of home buyers. As prices increase, concerns of affordability will continue to make headlines. If you are thinking about buying, now is the time to get pre-qualified for a mortgage and start your home search.
Are you planning to sell your home? We will create a complimentary, no-obligation home valuation for you so you know exactly what your home is worth prior to listing. Call us at 775-453-4568 today!