Let's review the Reno-Sparks housing market activity, comparing month over month residential real estate market activity from March to April 2017, and comparing year over year to April 2016.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes and condos in the Reno/Sparks area remained unchanged from March through the month of April at $305,000. When we compare this price to a year ago, we see an 8.3% increase, validating a continued healthy real estate market. While the year over year increases are beginning to impact affordability, it is important to note these increases are being fueled mainly by sustainable economic growth and new jobs. Additional new home construction and resale inventory should begin appearing on the market over the next few months to help meet some of the demand.
The number of homes sold decreased by 6.4% in April, with 599 sales versus 640 in March. There was also a decrease of 7.3% when compared to the 646 units sold in April of last year. The decrease in units sold is due in part to the lack of inventory.
There were 847 new listings on the market in April, which was a 3.2% increase from March. However, there was an 18.1% decrease in the number of new listings in comparison to April last year. Current demand for homes continues to outpace the supply, especially in price ranges below $500,000, and we expect a seller’s market to remain until more homes in affordable price ranges are offered for sale in the region.
As we look at the Inventory numbers, there were 2,234 homes available for sale at the end of April, which was a 7.5% increase from the 2,079 on the market in March. Comparing year over year numbers, a 7.4% decrease in inventory was seen since April last year. Lower inventory means less competition if you are selling, and means it’s a great time to consider selling your home if you want to move up to a larger home or higher price bracket.
All this information allows us to calculate the Months Supply of Inventory. Overall, there was a 1.8 months supply of inventory in April. This was a 0.1% increase from March, and is still very much in Seller’s Market territory. The year over year inventory comparison saw a decrease of 13.7%. The National Association of REALTORS considers 5 to 6 months of inventory to be a balanced 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. We still have very low mortgage rates, which will contribute to a steady stream of home buyers. As prices increase, concerns of affordability will continue to make headlines. If you are thinking about buying, be sure to get pre-qualified for a mortgage before starting your home search.
Whether you are buying or selling, talk to a Dickson Realty neighborhood expert first. Dickson Realty agents have the industry’s best tools, training and leading technology to stay in tune with the market.
Trust the experts at Dickson Realty to get you the information you need, when you need it. We are ranked the number one real estate company in the Reno, Sparks, Lake Tahoe market, and we’ve been assisting buyers and sellers in northern Nevada for over 40 years.
