Our market has heated up as the summer selling season gets into full swing. As of July 2nd, there were 1,029 homes available for purchase in Reno-Sparks, which is nearly a 26% increase from May. However, our inventory is still less than this time last year. Over 70% of available homes have asking prices below $600,000.
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 entered the market. The National Association of REALTORS considers 5 to 6 months of inventory a healthy market, where neither buyers nor sellers have a distinct advantage.
For homes priced below $300,000, we have only 23 days of inventory. For homes in the range of $300,000-$600,000, available inventory is 51 days. 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. The Inventory of homes in the $600,001 to $900,000 range is 4 months. The $900,000 to $1,500,000 price range is the most balanced at 4.5 months. For homes priced over $1,500,000, we have a 16.7 month, or just over a 1.25 year supply (a year ago, supply in this price range was nearly 3 years).
89% of Home Sales are Below $600,000
The total number of home sales year to date is nearly equal to this time last year. As of July 2nd, nearly 89% of year-to-date home sales in Reno/Sparks have been under $600,000. Only 7.2% of sales this year have been between $600,000 and $900,000. The remaining sales, or just 4% of all sales, were over $900,000.
If you are planning to buy a home, it is more important than ever to be pre-qualified with a lender before looking at houses, as many homes go into contract quickly after entering the market.