Let's take a look at the existing housing inventory and sales statistics by price range for the Reno-Sparks area, as of May 1st.
Local housing inventory and affordability continue to be main topics of conversation in the real estate industry, both nationally and locally. As of the end of April, inventory of homes that are Active and Available is up 4.9% from the end of March. Compared to this time last year, the inventory numbers are close, with 1,031 available listings now and 1,053 at the same time in 2016. This should bring some relief to buyers in our marketplace.
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 we have 25 days of inventory, emphasizing the need for more affordable homes in the region. For homes in the range of $300,001-$600,000, available inventory is 58 days, or about 1.9 months. The exceptionally low inventory in these price ranges means it is a great time to sell with little competition and consider moving up to a higher priced home, where more inventory is available.
With an inventory of just over 5 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 sits at 9.3 months for properties in the $900,000 to $1,500,000 range. For homes priced over $1,500,000, we have a 4 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.
As we find ourselves in the Spring selling season, it’s a good time to look at the Percentage of Sales by price range. Over 93.4% of all sales this year have been under $600,000, with 50.7% of sales occurring below $300,000, and 42.7% of sales between $300,000 and $600,000. Only 5.1% of sales this year have been between $600,000 and $900,000. The remaining 1.5% 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 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 to speak with us to discuss your options.