Inventory is low as we head into fall.
Reno and Sparks's median home prices were slightly lower again last month. With fewer and fewer homes available, inventory has been moving quickly - especially in the under-$600,000 market. Take a look at the chart below...
There were 1,820 homes available at the end of September. This a decrease of 6.8% when compared to August, and down a staggering 25% when compared to this time last year. Next, we will look at the number of units sold.
Reno/Sparks area REALTORS sold 587 single family homes in September, which was a decrease of 18.2% compared to August. Despite this significant monthly decrease, the year over year sales were only down 7.3% showing that the market is starting to follow the typical trend as we head into the fall season. This is not a demand issue, but rather an inventory issue resulting in fewer homes sold. Until more homes appear on the market, the limited inventory will continue to affect the number of sales.
So, let’s take a look at how the demand and sales activity impacted median price and average days on market through September.
While the median sold price for single family homes in Reno/Sparks decreased slightly from $347,854 in August to $335,000 in September, the better indicator of how the market is performing is the year over year analysis. Last September, our median price was $310,000. This year, it is $335,000, which is an increase of 8.1%.
Average Days on Market for homes sold in September decreased 4.7%, from 86 days in August to 82 days. It is normal during the peak summer months to see the average days to hover in the low to mid 80-day range, but we expect this number to increase as fall and winter come along. Last year, at this time, the Average Days on Market was 90 days. In a fast-moving market such as ours, you will want to be sure to work closely with me, and your lender to be pre-qualified before looking at homes.
Why should this information matter to you? The supply-demand equation continues to drive home prices up in the most affordable price ranges. However, the pace of price increases often depends on a specific neighborhood or area of town. Whether you are considering a move up, across town or to downsize, now is a great time for us to talk about your options.