Let's review the Reno-Sparks real estate market, comparing month over month activity from November to December 2017, and comparing year-over-year to December 2016.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes and condos in the Reno/Sparks area decreased by 3% to $324,950 through December. Though there was a decrease compared to November, a 12.1% increase is seen when we compare this price to a year ago. This year-over-year stat 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 sustained demand and the continued low inventory levels. We expect prices will continue to rise until more homes are available in the market.
The number of homes sold decreased by 7.9% in December, with 568 sales versus 617 in November. There was also a 5% decrease in the number of homes sold compared to December of last year. While it is typical to have sales tapering off this time of year, we believe the month to month decrease in sales is also partially attributable to the lack of inventory.
There were 352 new listings on the market in December, which was a staggering 20.9% decrease from the 445 in November. While some of the month over month decrease is attributable to the holiday seasonal trend, there was also an 8.8% decrease from the 386 new listings in December 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 705 homes available for sale at the end of December, which was a 24.5% decrease from the 934 on the market in November. A much more significant decrease of 47.4% was seen in the number of available homes for sale in Reno and Sparks when compared to December of last year.
The Month’s Supply of Inventory for homes in Reno and Sparks decreased slightly in December to 1.2 months from 1.5 months in November, but decreased 44.6% from December 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.