June Market Update

As we head into summer, our local market is heating up – ask any Realtor® you know, and they’ll tell you that in the last two weeks the floodgates have opened up here in Reno-Sparks. The news of Phase 2, the desire to change school districts, low interest rates and more are all contributing factors to the increase in buyer demand – but, indicators are still showing that we’re in a seller’s market.

We’ll cover the average home price, average days on market and the list to sale ratio for our area. But before we dive into the numbers, let’s talk for a second about why these numbers matter and what they mean to you.

Average Home Price

The average home price in an area is a key indicator of whether pricing is rising or declining. In Reno-Sparks, we’ve bounce between $390-$420k average home price since about 2017. Average home price also gives an indication of affordability when we look at cost versus the average annual household income.

Days To Contract

When people refer to the housing market being “hot” they usually mean that the days to contract are less than what the area is used to. In our area, we can see the average is anywhere from 30-60+ days depending on market conditions in the neighborhood.

List To Sale Ratio

This is probably one of the most important statistics to know if you’re thinking about buying or selling. The list to sale ratio gives you a good idea of just how much negotiation space you have – whether you’re putting in an offer, or listing your house for sale, knowing how much or how little wiggle room there truly is can save you heartache.

Average Home Price: $399,900

Over the last month , we’ve seen the average home price decrease 3.6% from $415,000. Year over year, we’ve seen an increase of 2.5% from $390,000 in 2019. While we did see the price decrease month over month, we’re still seeing a positive trend.

Days To Contract: 39 Days

The average days to contract has increased by 1.6% from 38 days to 39 days to contract. At this point last year, we were seeing an average of 32 days on market. The increase is good because it’s allowing buyers to not be in the hot seat as much, but we’re still in a seller’s market.

List To Sale Ratio: 99.0%

The margin for negotiation room here in Reno-Sparks is slim. With about a 1% margin for negotiation, sellers have to be sure to nail their pricing strategy, and for buyers, there’s no time for low-ball offers.

Inventory

Let’s talk about the basics here for a second – inventory is a key indicator in supply and demand, which ultimately has the biggest affect on any real estate market.

While we’re seeing more new listings come on the market month over month (+2.4%), on a year over year scale we’ve seen an 11.7% decrease in active inventory. This decrease puts more pressure on our already tight real estate market – over the last two weeks alone, we’ve seen buyer demand skyrocket.

With the increase in demand, and lower levels of inventory, we’re seeing a lot of multiple offer situations (which some like to refer to as a “bidding war”) – all of which are signs that we are in a seller’s market – so be ready to move quick.

Ultimately, the conditions of our real estate market here in Reno-Sparks is holding steady. If you’re still thinking about buying or selling, reach out to one of our skilled agents to discuss how you they can help you with navigating the real estate transaction.

Data Sourced from Reno-Sparks Association of Realtors®