** Data in the May 2023 Market Report reflect market activity from April 2023 compared to the previous month and year. Information is gathered from the Sierra Nevada Realtors ® (RSAR) for the Greater Reno-Sparks region via Northern Nevada Regional Multiple Listing Service (www.nnrmls.com). Data accounts for single-family resale residences only, and excludes townhouses/condos, manufactured/modular and new construction.
- The Months Supply of Inventory (MSI) represents the number of months it would take to sell through the available inventory at the current rate of sales. The MSI in March 2023 was 1.6 months, meaning that if the rate of sales continued at the same rate as it did in March, the entire housing inventory would be depleted in 1.6 months. A “balanced market” is typically between 5 and 7 months.
- The number of pending sales is an indicator for increasing units sold in May-June 2023 as it typically takes about 30-45 days to close these pending sales.
- The Median Sales Price in April 2023 ticked up 2% in Reno-Sparks combined, but is still down 9% compared to last year.
- The number of Closed Sales is still drastically low compared to historical data. This is largely due to lack of inventory in our market.
- However, properties that ARE listed appear to be moving, as indicated by the Months Supply of Inventory which was 1.6 MSI AVERAGE over all price points in April 2023.
- So why have we not seen the typical influx of homes on the market this spring? Here are a few reasons:
- The eager Sellers have already sold. During the height of COVID-19 when interest rates were radically lower (sub-3%) and homeowners could get top dollar for their investments, many took advantage of that supercharged housing market and made their move.
- In general, Buyer interest in many parts of the US is down. Higher mortgage rates have been a leading cause for many Buyers to stall. This can be a turnoff for some potential sellers, as they would rather have multiple hungry buyers, rather than unmotivated buyers.
- Finding an affordable replacement can be a challenge. Higher interest rates can impact potential Sellers when they then turn around and become a Buyer, causing many Sellers to stall on the sale of their home.
Where do you go from here? If you’re in a position that you need to make a move, contact me to help you strategize. As a buyer, I can help you potentially negotiate with Sellers to buy down your interest rate, making your next purchase more affordable. And as a Seller, recognize that inventory is extremely low, and there are fewer homes for sale to compete against. This could be a great time to list & sell!
If you need an expert to guide you through your next real estate purchase or sale, I am here for you, whatever your real estate needs are. Email me at firstname.lastname@example.org or reach me by cell at 775-233-0682 so we can discuss the best plan for YOU!
~Denise Hallerbach, Broker-Owner, INTERO RENO.