Demand for housing in Reno-Sparks remains high, and supply is near a record low. Although this creates a challenging environment for home buyers and sellers alike, it is one of the best move up markets in recent history. Let’s take a look at a few key points.
As of May 29th, there were 818 homes in Reno-Sparks that were Active and Available for purchase. That is a welcomed 17.2% increase from the 698 available homes on the market at the end of April, but still a significant 20.7% decrease from April 2017. Over 68% of available homes have asking prices below $600,000, and only 131 of the homes on the market today have asking prices under $300,000. By comparison, 243 of available listings were under $300,000 at this time last year. If you are buying in this market, it is more important than ever to be pre-qualified with a lender before looking at houses in most price ranges, as many homes go into contract quickly after hitting the market.
Absorption Rate, or Days of Available Inventory, is the amount of time it would take to sell off existing homes for sale if no additional homes entered the market.
As expected, in prices below $600,000 multiple or competing offers are happening in some neighborhoods. For homes priced below $300,000, we have only 15 days of inventory, emphasizing the need for more affordable homes in the region. For homes in the range of $300,000-$600,000, available inventory is 41 days. If you own a home in either of these price ranges, it is a very good time to sell with little competition in the marketplace. It is also an excellent time to consider moving up to a higher priced home where more inventory is available.
With an inventory of 3.4 months, the $600,001 to $900,000 price range is firmly in seller’s market territory like the lower price ranges. For properties in the $900,000 to $1,500,000 range, the inventory has decreased to 4.8 months. This price range represents the most balanced market between sellers and buyers. For homes priced over $1,500,000, we have a 16 month or a 1.25 year supply.
The National Association of REALTORS considers 5 to 6 months of inventory a healthy market, where neither buyers nor sellers have a distinct advantage.
As of May 29th, nearly 89% of all sales in Reno/Sparks have been under $600,000, with 32.7% of sales occurring below $300,000, and 56.2% of sales between $300,000 and $600,000. We are seeing a shift between these two price categories when comparing 2018 to 2017. Last year, 48.9% of all sales occurred below $300,000 and 44.4% occurred between $300,00 and $600,000. Only 7.3% of sales this year have been between $600,000 and $900,000 (compared to 4.9% in 2017). The remaining sales, or 3.9% of all sales, were over $900,000.
The supply-demand equation continues to drive home prices up in nearly every price range. We expect this trend to continue. However, the pace of price increases often depends on a specific neighborhood or area of town. No matter your reason for moving, contact a Sallan Real Estate to discuss your options for buying or selling.