Let's take a look at the existing housing inventory and sales statistics by price range for the Reno-Sparks area, as of October 31st.
The local real estate inventory and affordability have been the main topics of conversation in the real estate industry for several months. At the end of October, overall inventory was up 21% year-over-year. While available inventory is down in the under $300,000 price range compared to this time last year, it is up in every other price bracket, underscoring the need for more affordably priced homes in the market.
When we look at absorption by price range, we still see a strong seller’s market in homes priced below $600,000. For homes priced below $300,000 there is a little over one month of inventory at 41 DAYS! For homes in the range of $300,001-$600,000, available inventory is just below 3 months. Both price ranges experienced a decrease in available inventory when compared to September, and underscores the robust Seller’s Market. 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.
In the price ranges above $600,000 we have a greater inventory of available homes, and a shift toward more of a buyer’s market. The months of inventory sits at 7.5 months for properties in the $600,001 to $900,000 range, while in the price range $900,000 to $1,500,000, the months of inventory is 14 months. For homes priced over $1,500,000, we have seen a dramatic increase in inventory since the beginning of the year; currently with nearly a 4 YEAR supply.
As we enter the fall months, it’s a good time to look at the Percentage of Sales by price range. Over 94% percent of all sales since the beginning of this year have been under $600,000, with 55.5% of sales occurring below $300,000. Over 38% of sales occurred between $300,000 and $600,000. Only 3.9% of sales this year have been between $600 and $900,000. The remaining 1.7% of 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 is beginning to temper, and often depends on the neighborhood or area of town. Whether you are considering a move to downsize or to move up, now is a great time for us to speak to discuss your options.