Let’s take a look at the Reno/Sparks housing inventory and sales statistics by price range for the year as 2017 has come to a close. Demand for affordable housing in Reno-Sparks is high, and supply is low. This creates a challenging environment for home buyers and sellers alike. Here are the details:
As of December 31st, there were 665 homes on the market that were Active and Available for purchase. That is 19% fewer homes than the 821 on the market at the end of November and a staggering 44% fewer than the 1,187 homes on the market at the end of last year. 66.5% of available homes have asking prices below $600,000, which is down from 73.4% in December 2016. Only 115 of the homes on the market today have asking prices under $300,000. By comparison, 361 of available listings were under $300,000 at the end of December 2016. It is most definitely a Seller’s Market in these price ranges. Buyers should be pre-qualified with a lender before heading out to look at any homes in the lower price ranges.
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, the strong seller’s market in prices below $600,000 often means multiple or competing offers in some neighborhoods. For homes priced below $300,000, we have only 11 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 35 days, or just over 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 just under 3 months, the $600,001 to $900,000 price range represents a more balanced market between buyers and sellers. However, this price range is also in a seller’s market territory like the lower price ranges. Once the asking price moves above $900,000, the market begins a shift to favor the buyer. The months of inventory is 7 months for properties in the $900,000 to $1,500,000 range. For homes priced over $1,500,000, we have a 21 month or just under a 2 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.
We had a record breaking year in regard to the number of sales in 2017. Let’s take a look at the Percentage of Sales by price range.
91.8% of all sales in Reno/Sparks this year have been under $600,000, with 44.2% of sales occurring below $300,000, and 47.6% of sales between $300,000 and $600,000. A shift can be seen between these two numbers when looking at the percentages at this time in 2015, where 62.9% of all sales occurred below $300,000 and 31.9% occurred between $300,00 and $600,000. Only 5.9% of sales this year have been between $600,000 and $900,000. The remaining sales, or just 2.4% 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 to a larger or more expensive home, or even a move across town, now is best time for us to discuss your options.
Please reach out if you have questions or would like to talk about what is happening in our real estate market.