In good news, the August 2017 Reno Sparks Market Report indicated a decrease in the median sale price. Unfortunately, inventory tightened up even more. The area remains firmly in the Seller's favor.
August 2017 Reno Sparks Market Report
Total Reno Sparks Sales in August 2017
According to the Reno Sparks Association of REALTORS@, a total of 678 Reno Sparks homes were sold in August 2017. That was 13.8% higher than the same time last year and 6.4% higher than July 2017.
New Reno Sparks Inventory for August 2017
Inventory continues to be an issue for Reno Sparks Buyers. While new listings decreased from last year, they actually went up from the previous month. In August 2016, 814 new listings hit the Reno Sparks real estate market. In August 2017, that number decreased by 11.9% to 717. On the other hand, this showed a 9.5% uptick from July's 655. It's difficult to determine whether this upward trend will continue since June 2017 showed 835 new listings. We'll have to wait to see.
The total supply of inventory in the last 12 months dropped from a high of three months back in October 2016 to a low of 1.5 months in August 2017. That's almost half of the 2.8 months available back in August 2016 (a drop of 48.4%). The Reno Sparks market continues to favor Sellers.
Median Reno Sparks Sale Price in August 2017
The median sale price for a Reno Sparks home in August 2017 was $349,500. This marked a 12.7% increase from August 2016's median sale price. However, it also showed a 2.2% decrease from the previous month's all-time high of $357,500. The price-per-square-foot rose 9% from $177.19 in August 2016 to $193.17 in August 2017.
Suburban Southwest Reno showed the highest median sale price (just over $680,000). Metro Southwest and West Suburban Reno followed behind at $450,000 and $440,000+. The lowest median sale prices in the Reno Sparks area were found in Sparks and the North Valleys. Both reported a median sale price of $270,000.
What Reno Buyers Need to Know
One reason cited for our low inventory is that homeowners aren't ready to pay higher prices that the Reno Sparks market commands right now. So they hold on to their homes a bit longer. Furthermore, Reno Sparks homeowners who bought their properties as investments continue to take advantage of the higher rents in the Reno area. Lower inventory and high demand means higher rents and higher prices. According to Bankrate.com, current mortgage rates come in just under 4% for a 30 year fixed-rate loan. That continues to be a fantastic rate if you're interested in purchasing a Reno home.
Originally posted on my Reno real estate blog here: http://www.relocationtoreno.com/2017/09/18/august-2017-reno-sparks-market-report/