Let's review the Reno-Sparks housing market activity, comparing residential sales from September to October 2016, and comparing year over year activity to October 2015.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes and condos in the Reno/Sparks area decreased 1.7% from $295,000 in September to $289,950 in October. When we compare this price to a year ago, we see a healthy 9.4% increase, validating a strong market locally. 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 created by existing companies that are expanding and more companies moving to our region.
The number of homes sold decreased in October, with 568 sales versus 723 in September. There was also an 8.7% decrease in sales when comparing year over year data; down from 622 in October 2015.
There were 637 new listings on the market in October, which was a 19% decrease from September. Year over year, there was a 2% decrease in the number of new listings as well. Current demand for homes continues to outpace the supply, especially in price ranges below $500,000, and we expect a strong seller’s market to remain until more homes are offered for sale in the region.
As we look at the Inventory numbers, there were 2,300 homes available for sale at the end of October, which was a 9.9% decrease from the 2,553 in September. Despite the decrease month over month, a 2.2% (or 50 home) increase in inventory was recorded since October of last year.
All this information allows us to calculate the Months Supply of Inventory, which has increased from historically low numbers in the most active price ranges below $600,000. Overall, there was a 4 month supply of inventory in October. This was a 14.7% increase from September which is heading in the direction of a balanced market. The year over year inventory comparison also increased by 11.9% from 3.6 months in October 2015 to 4 months in 2016. 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. Low mortgage rates will also contribute to a steady stream of home buyers. As prices increase, concerns of affordability will make headlines. If you are thinking about buying, now is the time to get pre-qualified for a mortgage and start 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.
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