Let's review the Reno-Sparks real estate market, comparing month over month activity from December 2017 to January 2018, and comparing year-over-year to January 2017.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes and condos in the Reno/Sparks area increased by 5.4% to $342,500 through January. There was also was a 19.3% increase when we compare this price to a year ago. This year-over-year change is a better indicator of how the market is performing. One of the largest reasons for the double-digit year over year increase in value is due to the continued low inventory levels and sustained demand from home buyers. We expect that prices will continue to rise until more homes are available in the market.
The number of homes sold decreased by 20.9% in January, with 457 sales versus 578 in December. Despite the large monthly decrease, the number of units sold actually increased by 9.1% when compared to January of last year. While it is typical to have fewer sales this time of year, we believe the month to month decrease in sales is also partially attributable to the lack of inventory.
There were 562 new listings on the market in January, which was an impressive 49.9% increase from the 375 in December. There was also a 19.1% increase from the 472 new listings in January 2016. A strong seller’s market is expected to remain in many price ranges until more new listings are offered for sale in the region.
The Inventory numbers set the stage for the market conditions today. There were 603 homes available for sale at the end of January, which was a 22.8% decrease from the 781 on the market in December. A much more significant decrease of 50.8% was seen in the number of available homes for sale in Reno and Sparks when compared to January of last year. Our Dickson Realty neighborhood experts can explain how the buyer demand for your house will be strongest at times when there is less competition among sellers, which can often lead to a shorter time on market and possibly a higher sale price.
The Month’s Supply of Inventory for homes in Reno and Sparks decreased slightly in January to 1.3 months from 1.4 months in December, but decreased 54.9% from January of last year. This reaffirms that now is a time that homes can be sold quickly in most price ranges and most neighborhoods.
Why is this information important to home buyers and sellers? The low housing inventory and our region’s economic growth will continue to drive home prices up. We still have very low mortgage rates, which will contribute to a steady stream of home buyers.