How did National Trends Affect the Reno-Sparks Real Estate Market in Q1 2023?

The national home market continues to adjust back to normal. Inventory rates nationally are declining, in part due to rate-locked sellers worried about financing and in part due to increasing demand. Experts agree that this, combined with significant increases in new pending sales and contracts in the first quarter of 2023, indicates an upward trend for the market.

Dig into the numbers with me in this video

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Reno-Sparks Real Estate Market Trends

• For the last decade, existing home sales have averaged 500 homes per month. While 2022 was a below-average year, with 434 existing home sales per month, the first quarter data shows the market to be on track for 430 or more sales per month this year.
• Year-over-year, the Reno-Sparks real estate market has only seen an 8% decrease in median home price. March and April both saw upticks in median home pricing, with the current median home price being $527,919.
• New contracts have increased locally by 6% month-over-month. It’s likely that more than 400 homes will sell in the Reno-Sparks market in April, which will continue bringing the market to average numbers.
• The seasonal market in Reno means there’s been an uptick in new listings as we’ve welcomed spring. New inventory is up month-over-month by almost 15%, but active inventory is down by 10% in the same time frame – currently sitting at 543 homes.
• The gap between list price and sold price continues to get smaller. While January and February saw a much more significant gap in sale price, March is seeing more regulation. The local real estate market is now nearing the average of 98%.
• Days to contract is also normalizing in the first quarter of this year. In March, the average days to contract decreased to 18 days – down 43% from February alone. In the first quarter of this year, the average days to contract has decreased from two months to about half a month. As we continue into spring and summer, especially with the current inventory rates, we may see days to contract decrease even further.

National Real Estate Market Trends

• The first quarter of 2023 saw an increase in pending contracts. In the last quarter of 2022, there was a steep decline in pending contracts, so this rebound is indicative of an upward-trending market.
• At the end of February this year, there were 69,000 new pending contracts (less than seven days old), which is a 1.3% increase year-over-year, indicative of increasing buyer demand.
• Inventory is nationally decreasing as the demand for homes has increased this quarter. Many potential sellers are in a “rate lock” – worried about having an increased interest rate or monthly payment if they move. Due to this, inventory is likely to remain near current levels.

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