Demand for affordable housing in Reno-Sparks is high, and supply is low. This creates 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 October 2nd, there were 1,044 homes on the market that were Active and Available for purchase. This is 3.1% fewer homes than the 1,077 on the market at the end of August and a staggering 35% fewer than the 1,602 homes on the market at this time last year. Sixty-six percent, or 692 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 has remained in prices below $600,000, often with competing offers in some neighborhoods. For homes priced below $300,000, we have only 17 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 $300,000-$600,000, available inventory is 55 days, or almost 2 months. If you own a home in these price ranges, 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 5.4 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 11 months for properties in the $900,000 to $1,500,000 range. For homes priced over $1,500,000, we have a 2.5 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 strong summer selling season is continuing into fall, and we are on track for a record breaking year for the number of sales. Let’s take a look at the Percentage of Sales by price range.
92% of all sales in Reno/Sparks this year have been under $600,000, with 45.3% of sales occurring below $300,000, and 46.8% 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 2.4% 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, or even a move across town, now is a great time for us to speak to discuss your options.