Reno Residental Sales Market Trends
RENO AREA MARKET NEWS
Whether buying or selling, you need an expert advisor on your side. I have the tools and technology to help you understand the nuances of the market. Contact me to get the very latest information about your neighborhood home values.
In the real estate industry, we’ve been talking about low levels of inventory for many months now. But what does that mean? We’ve broken down the Months of Inventory by price range, and are only looking at homes that are Active and Available. As of September 28th, for homes priced $10,000-$300,000, there are only 38 DAYS of inventory! For homes in the range of $301,000-$600,000, inventory is just 84 days, or just around 2.8 months. Although inventory has increased slightly since earlier in 2015, these two price ranges have been in a very strong seller’s market for many months now. It’s good to note that the National Association of Realtors looks for 5 - 6 months of inventory in a balanced market, where neither seller’s nor buyer’s have a distinct advantage.
The first half of 2015 was positive for luxury home sales in the Reno area. In the second quarter alone, there were 30 home sales over $1 million, which is a 76.5% increase in sales compared to 17 in the first quarter. Sales were strong in most neighborhoods; however, two areas in particular had the most activity, with 5 sales in the Eaglesnest community of Caughlin Ranch and 7 sales in Montrêux. While sales have increased in 2015, the luxury home market remains oversupplied with approximately two years of inventory over $1 million. Correctly pricing your home to sell in this highly competitive market is key to a successful sale within a reasonable timeframe.
If we break down the Months of Inventory by price range, and only look at the homes that are Active and Available as of June 29th, then we see even lower levels of inventory, especially in the under $300,000 price range. For homes priced $10,000-$300,000 there are 31 days of inventory. For homes in the range of $301,000-$600,000, inventory is just 74 days, or right around the 2.5 month mark. These two price ranges have been in a very strong seller’s market for many months now.
Now let’s look at sales through June 29th. Exactly 65.4 percent of all closed sales since January 2015 have been in the under $300,000 price range. The number of sales under $300,000, 2,204 sales this year to date, is nearly two times the number of sales in all other price ranges combined. The updated statistics indicate 29.6 percent of all closed sales were in the $301,000-$600,000 range; while 3.3 percent of closings (111 homes) were for properties priced $601,000 to $900,000. Only 1.7 percent of sales were priced over $900,000.
What are the reasons for our continued inventory shortage, especially in the lower price ranges? There are many first time homebuyers. Competing in the first time buyer price ranges are investors, who are using their capital reserves to pay cash. In some cases, these cash buyers pay over asking price and further drive prices up.
The good news is, these increased values are putting more sellers in a positive equity position. This may be you, and if you are ready to move, the time may be right for us to talk. At Dickson Realty, we have the tools and technology to stay on top of the market. That will help you buy or sell at the right price.
The median sales price for single family homes sold in May experienced a 4.6 percent increase, to $285,000, from April, 2015. The median sales price for condos stayed the same from April to May at $125,000.
While there was a decrease of 7.6 percent for the number of condos sold from April to May, there was a slight increase of 2 percent for the number of homes sold over that same time span. It is worth noting that May 2015’s unit sales are the second highest in history for the month of May, exceeded only by May, 2005, which was the height of the real estate boom.
All of these numbers combined to help reduce the overall supply of available homes. According to the Reno Sparks Association of Realtors, there were 3 months of unsold home inventory at the end of May. However, this calculation includes some homes that are in contract. When we look at only homes that are available to make an offer on, the available inventory slips to just over 30 days for homes and condos.
Although mortgage interest rates are still incredibly low, the 30-year fixed rate mortgage is up almost one half of one percent since mid-May. Buyers who have been on the sidelines should keep in mind that rates are expected to continue to rise throughout the year.
It’s an even better time to sell, while inventory is very constrained. Whether buying or selling, you need an expert advisor on your side. I have the experience, tools and technology to help you understand the nuances of the market. Contact me to get the very latest information about your neighborhood home values.
The median sales price for homes sold in April experienced a nearly one percent increase from March, 2015, and an 18% increase over April, 2014. For Condos, the median price increased 13.6% from March to April.
The number of Homes and Condos that sold also increased in the month of April. While the average days on market was slightly lower for April, it has been fairly stable for the past several months.
All of these numbers, combined to help reduce the overall supply of available homes to purchase. According to the Reno Sparks Association of Realtors, inventory was 2.9 months of unsold homes at the end of April. However, this calculation includes homes that are in contract. When we look at only homes that are available to make an offer on, the available inventory slips to just over 30 days for homes and less than 30 days for condos.
Mortgage interest rates are still incredibly low, so it is a great time to buy and an even better time to sell, while inventory is very constrained. You’ll want to work closely with your lender and your Dickson agent to make sure you are well positioned when making an offer.
In April, the total number of single family home sales in the greater Reno Sparks area was up 3% from March. While the median sales price decreased slightly from March, it has increased 7 percent from January, to $271,000.
The number of homes available for purchase continued to decrease in April to 651, down from 797 in January. Typically inventory levels begin to rise as we get further into spring, and we are already seeing more homes come onto the market in May. Also, the outlook for more new home construction is positive as we head into the peak building season, which should provide some relief for our region’s constrained inventory.
April’s average days on market was 95, which is a slight increase from March. The average days on market has been relatively stable for the past several months.
Total February single family home sales were up 6 percent. The median sales price for homes increased 5% to $265,000. Overall supply of inventory stayed the same at 1.8 months, but breaking that inventory down by price range tells a very different story. Under $300,000, there is only 16.8 DAYS of inventory, and between $300,000 and $600,000, there is 1.68 MONTHS of inventory.
Total Condo sales increased in February by 38% over January, and the median sales price also increased 13% over January’s median price of $97,300. At the end of February, there was a 1.4 months supply of inventory for condos.
Interest rates are still incredibly low, so it is a great time to buy. It’s an even better time to sell. To understand the nuances of the real estate market, you need an expert counselor on your side whether you are buying or selling.