Demand for affordable housing in Reno-Sparks is high, and supply is low. While this creates a challenging environment for some home buyers and sellers alike, it is also one of the best move up markets in recent history. Let’s take a look at what’s happening.
As of February 27th, there were 607 homes on the market that were Active and Available for purchase. That is a 5% increase from the 578 available homes on the market at the end of January, but a staggering 37.6% decrease from the 972 homes on the market in February 2017. 66% of available homes have asking prices below $600,000, which is down from 71.7% in February 2017. Only 117 of the homes on the market today have asking prices under $300,000. By comparison, 273 of available listings were under $300,000 at the end of January 2017. Buyers will want to be pre-qualified with a lender before heading out to look at any homes in the lower price ranges, as homes quickly go into contract 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 came onto 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 13 days of inventory, emphasizing the great need for more affordable homes in the market. For homes in the range of $300,000-$600,000, available inventory is 28 days, or just under a month. 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 2.5 months, the $600,001 to $900,000 price range has now moved more into seller’s market territory like the lower price ranges. The months of inventory is 5.2 months for properties in the $900,000 to $1,500,000 range. This price range represents the most balanced market between sellers and buyers. For homes priced over $1,500,000, we have a 14.3 month or a 1.25 year supply.
Are you planning to buy or sell a home in Northern Nevada? Call us at 775-453-4568 for more information about the local real estate market.