Local housing inventory and affordability continue to be topics of conversation in the real estate industry, both nationally and locally. Let’s take a look at what’s happening in the Reno-Sparks market area.
As of May 30th, inventory of homes that are Active and Available is unchanged from the beginning of May, up 4.9% from the beginning of April, but down 16.8% from this time last year. The total number of homes active and available is 1,031. Sixty-nine percent, or 711 of those homes, have asking prices under $600,000.
Now, let’s talk about absorption rate by price range. The Absorption Rate, or Days of Available Inventory, is the amount of time it would take to sell off existing homes for sale if no new homes came onto the market.
Under $600,000, a strong seller’s market exists, often with competing offers in some neighborhoods. For homes priced below $300,000, we have just 23 days of inventory, emphasizing the great need for more affordable homes in the region. For homes in the range of $300,001-$600,000, available inventory is 58 days, or about 1.9 months. The exceptionally low inventory in these price ranges means it is a great time to sell with little competition and consider moving up to a higher priced home, where more inventory is available.
With an inventory of just over 6 months, the $600,001 to $900,000 price range represents the most balanced market between buyers and sellers. In the territory above $900,000, the market begins a shift to favor the buyer. The months of inventory sits at 10 months for properties in the $900,000 to $1,500,000 range. For homes priced over $1,500,000, we have nearly a 4 YEAR supply.
It is good to remember that The National Association of REALTORS considers 5 to 6 months of inventory a healthy market, where neither buyers nor sellers have a distinct advantage.
The typically strong summer selling season is just around the corner, so let’s look at the Percentage of Sales by price range. Over 93% of all sales this year have been under $600,000, with 49% of sales occurring below $300,000, and 44% of sales between $300,000 and $600,000. Only 5% of sales this year have been between $600,000 and $900,000. The remaining sales, or less than 2% of all sales, were over $900,000.
The supply-demand equation continues to drive home prices up in the most affordable price ranges below $600,000. However, the pace of price increases often depends on the neighborhood or area of town. Whether you are considering a move to downsize, move up, or even a move across town, now is a great time to speak with us to discuss your options.