Demand for affordable housing in Reno-Sparks is high, and supply is low. This makes it a challenging environment for home buyers and sellers alike. Let’s take a look at our local housing inventory and year to date sales statistics by price range.
As of August 28th, there were 1,077 homes on the market that were Active and Available for purchase. This number was slightly less than the 1,082 on the market at the end of July. Despite this small change month over month, Available Inventory is down 32.8% from the 1,602 homes on the market at this time last year. Sixty-seven percent, or 724 of the homes on the market today have asking prices under $600,000, and less than 20% of the homes on the market have asking prices below $300,000.
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 additional homes came onto the market.
As expected, a strong seller’s market exists in prices below $600,000, often with competing offers in some neighborhoods. For homes priced below $300,000, we have just 18 days of inventory, emphasizing the great need for more affordable homes in the region. That is the lowest inventory in that price range since March of 2015. For homes in the range of $300,001-$600,000, available inventory is 60 days, or 2 months. The exceptionally low inventory in these price ranges means it is a great time to sell with little competition. It is also an excellent time to consider moving up to a higher priced home where more inventory is available.
With an inventory of 5.8 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 is nearly 10 months for properties in the $900,000 to $1,500,000 range. For homes priced over $1,500,000, we have almost a 3 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 sustaining, so let’s look at the Percentage of Sales by price range. 92% of all sales this year have been under $600,000, with 45.7% of sales occurring below $300,000, and 46.3% of sales between $300,000 and $600,000. Only 5.5% of sales this year have been between $600,000 and $900,000. The remaining sales, or just 2.5% of all sales, were over $900,000.
The supply-demand equation continues to drive home prices up in the most affordable price ranges. However, the pace of price increases often depends on a specific neighborhood or area of town. Whether you are considering a move to downsize, move up, or even a move across town, now is best time to speak with us to discuss your options.