October 2023 Market Report

** Data in the October 2023 Market Report reflect market activity from September 2023 compared to the previous month and year.  Information is gathered from the Sierra Nevada Realtors ® (RSAR) for the Greater Reno-Sparks region via the 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 September 2023 was 2.3 months, meaning that if the rate of sales continued at the same rate as it did in September, the entire housing inventory would be depleted in 2.3 months.  A “balanced market” is typically between 5 and 7 months.

SUMMARY:

• • At $567,500, the Median Sales Price in September 2023 was just 1.3% down from the previous month and is 7% higher than in September 2022. 
  • Today’s real estate market is playing with two factors
    • 1- A massive shift from historically low interest rates in 2021 to historically high interest rates in 2023.  Mortgage rates reached a 23-year high this month, currently at 7.99%.
    • 2- Inventory is Low.  According to Busineswire.com, “85% of Homeowners with mortgages have a rate far below today’s level, a factor prompting many to stay put. Some Americans are hesitant to sell their homes as mortgage rates soar because they have a low interest rate locked in. That’s contributing to a nearly 20% slump in new listings.”
  • The Number of Single Family Residences Sold in September was about 13% lower than the previous month, and 21% lower than last year.
  • Median Days to Contract increased slightly, up from 18 to 22 days month-over-month.
  • So who is the typical Seller?  Sellers these days are generally making a move because there is a specific reason… relocation, decline in health, loss of a loved one, divorce, and sometimes even a new birth are all reasons Buyers and Sellers are pulling the trigger now. In addition, retirees from CA are still settling in Northern Nevada, and working Californians who change job locations or work remotely are finding their home in Nevada!!

When is YOUR next move?  If you’re in a position where 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!  Email me at dhallerbach@intero.com or reach me by cell at 775-233-0682 so we can discuss the best plan for YOU!

~Denise Hallerbach, Broker-Owner, INTERO RENO.