Let’s take an in depth look at the Reno-Sparks housing market activity, comparing May to June, 2016, activity, and also to activity from June, 2015.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes in the Reno/Sparks area increased by a meager on half percent to just over $311,000 in June. When we compare this to a year ago, there was a very robust 11.3% increase, validating a strong market locally. Industry experts are not predicting a bubble at this time, as the increases in value are being fueled mainly by economic growth and jobs in our region.
The number of homes sold increased modestly from 593 in May to 636 in June. Although more homes sold when comparing month over month, there was a 3.2% decrease in units sold when comparing year over year data.
There were 798 new listings on the market in June, which is a 2.3% more than a year ago, but 56 fewer, or a 6.6% decrease in new listings than last May. Although we are seeing a small increase in new listings year over year, the current demand for homes continues to outpace the supply. We’ll continue to experience a strong seller’s market until more homes are offered for sale in the region.
As we look at the Inventory numbers, there were 2,079 homes available for sale in June; which was a measly 50 unit increase from June of last year, but nearly a 4% drop from May.
All this information allows us to calculate the Months Supply of Inventory, which remains historically low in the most active price ranges below $600,000. Overall, there was a 3.3 months’ supply of inventory in June, which is a 10% decrease from May. The National Association of REALTORS considers 5 to 6 months of inventory to be a healthy housing market, where neither buyers nor sellers have a distinct advantage.
What does all this information mean to you, and why should it matter if you are a home buyer or seller? The lack of inventory and our region’s economic growth will continue to drive home prices higher. Low mortgage rates will also contribute to a steady stream of home buyers. As prices increase, concerns of affordability are making headlines. If you are thinking about buying, now is the time to get pre-qualified for a mortgage and start your home search.