Let’s review Reno-Sparks real estate market activity, comparing April to May 2018 and year-over-year activity to May 2017.
The Median Sold Price for single family homes and condos in Reno/Sparks decreased by 1% to $351,500 from April to May but increased 10.6% compared to a year ago when the Median Price was $317,750. This year-over-year change is a better indicator of how the market is performing. Continued low inventory levels and sustained demand from home buyers are the primary reasons for the double-digit annual increase in value. We expect that prices will continue to climb until more homes are available in the market.
The number of homes and condos sold increased by 16% in May over April. Despite this increase, the total sales in May was down 15% compared to this time last year.
There were 891 new listings on the market in May, which was a welcomed 16% increase from the 768 in April. This is still 5% lower than the 938 new listings that came on the market in May 2017. This time of year, we often see an increase in the number of new listings as the summer peak moving season is near.
The Inventory numbers help set the stage for the market conditions today. There were 886 homes available for sale at the end of May, which was a 5.7% increase over April. When compared to May of last year, a considerable 29% decrease was seen in the number of homes for sale in Reno/Sparks. If you are planning to sell, we can explain how buyer demand will be strongest when there is less competition among sellers. Strong demand can lead to a shorter time on market or a higher sale price.
The Month’s Supply of Inventory for homes in Reno/Sparks decreased from 1.5 months in April to 1.3 months in May. In a balanced market, where neither the buyer or seller has the advantage, we would need 5 to 6 months of available inventory. This reaffirms that now is a time that a home can be sold quickly in most price ranges and most neighborhoods.
The low housing inventory and our region’s economic growth will continue to drive home prices up in the near term. We still have very low mortgage rates, which will help maintain the demand from home buyers in the market.
Curious about the Reno-Sparks real estate market or interested in purchasing or selling a home? Contact us for more information.