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 3.9% from April to May to $319,000. When we compare this price to a year ago, we see a 9.6% increase, validating the continued strong demand for real estate in the Reno Sparks region. While the year over year increases are having an impact on affordability, it is important to note these increases are being fueled by sustainable economic growth and new jobs. With summer nearly upon us, additional new home construction should begin appearing on the market over the next few months to help meet some of the demand. If you are thinking of selling, now may be the time.
The number of homes sold jumped by over 23% in May, with 750 sales versus 609 in April. There was also an increase of 9% when compared to the 688 units sold in May of last year.
There were 893 new listings on the market in May, which was a small 2.9% increase from April. However, there was an 9.6% decrease in the number of new listings in comparison to May last year. Current demand for homes continues to outpace the supply, especially in price ranges below $500,000. We expect a strong seller’s market to remain until more new listings in affordable price ranges are offered for sale in the region.
As we look at the Inventory numbers, there were 2,331 homes available for sale at the end of May, which was a 2.3% increase from the 2,278 on the market in April. Comparing year over year, we have an 11.2% decrease in inventory of homes for sale in Reno and Sparks. The low inventory in prices below $600,000 makes it a great time to sell. Demand for your house will be strongest at a time when there is very little competition.
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. We still have very low mortgage rates, which will contribute to a steady stream of home buyers. As prices increase, concerns of affordability will continue to make headlines.