Market Update for Reno-Sparks
Real estate is in all the news today, and the noise is deafening. We want to take just a moment to paint a quick picture of what the market looks like locally. Here is a market update for Reno-Sparks:
Last 90 Days:
Out of 988 homes sold, the average close price was $788,824 – and they spent 64 days on the market.
Out of the 405 homes currently pending, their average list price is $859,025. Pending homes have now been on the market for 84 days.
What is this telling us? The average list price is higher, and they are taking longer to sell. Our market is still great; homes just aren’t flying off the shelves, so to speak.
What Does it Mean?
When looking at the sold homes and the adjusted list prices to sold price ratios, a negotiated price of + or – 2%-3% overall spread provides a fair give and take on values. The days on the market are in line with a rebalance of values. Again, that is good news if we want to see a softer landing than many are predicting.
As of the first of July, sales in the homes that have rebalanced their expectations remain strong, and the market is doing very well. The August/September numbers will be significant as we move through the rest of this year and where we stand on unsold inventory by September and price adjustments.
From this viewpoint, we expect a market correction of asking prices, sold prices, a flattening of values, and a rise in the low single-digit levels as we end the year (assuming another 1% interest increase).
How Does this Affect the Price of My Home?
In an upwelling market, raising prices quickly to ride a wave of price increases is one thing. In an adjusting market, it’s suicide not to adjust to the market swiftly. You’ll risk chasing a market down!
Should I List My Home Now?
For sellers on the fence, selling now is an excellent opportunity. Buyers are highly focused on quality and value, and inventory remains low. With the current interest rates, buyers are making offers. The key words here are that buyers are making offers. Overbids still exist, but fewer than before. Buyers will expect the seller to negotiate.
Is Now a Good Time to Buy?
Buyers waiting for some unrealistic bottom to develop will be sorely disappointed in the results and miss a host of great opportunities in this market. Yes, we will see some fantastic deals on the fringes, and the competition for those homes will be intense. We assume that interest rates will move significantly in the next 60 days. Time will tell.
Please review and call us with any questions, and you should have questions. A lot is going on with many moving parts. Remember, regardless of the “news,” our inventory is small; demand, even reduced demand, still exceeds supply.
If you’d like to stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno real estate market or if you’re ready to list your home, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.
