** Data in the JANUARY 2024 Market Report reflect market activity from DECEMBER 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 only accounts for single-family resale residences and excludes townhouses/condos, manufactured/modular, and new construction.
Looking at the Reno-Sparks real estate market over the last year, prices appear to have stabilized since June 2023. Appreciation has flattened. Note that in October 2023, mortgage rates surpassed the 8 percent threshold, but have since dropped nearly 1.5 points and are below 7 percent now.
- 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 December 2023 was 2.2 months, meaning that if the rate of sales continued at the same rate as it did in December, the entire housing inventory would be depleted in 2.2 months. A “balanced market” is typically between 5 and 7 months.
Naturally, the MSI can vary by price range greatly. As seen in the above graph, the $1M+ market is behaving more balanced. Homes listing under $1M are technically considered to be in a “Seller’s Market.”
The graph above shows that the number of New Listings to come to market in December hit a 10-year low at 200 single family homes.
Similar to New Listing data, the Number of Pending listings in a given month hit a 10-year-low as well.
Approximately 1/2 of the single family homes that sold over $1M in December were purchased with cash. 40% of homes in the $750k to $999k price point were also purchased with cash.
For the third straight month, no short sales or foreclosures were sold. What does the distressed inventory look like? In December, the entire Reno-Sparks market offered only 6 distressed single family homes TOTAL. Three were bank-owned (foreclosures) and three were short sales.
- The Median Sales Price for Reno-Sparks combined in December 2023 was $565,500, 2.5% higher than November and 9.5% higher than December 2022.
- Inventory remains extremely low.
- According to BankRate.com, “After topping 8 percent in October 2023, mortgage rates fell sharply to close out the year. As of Jan. 3, the average rate on 30-year loans remained below 7 percent.” Great news for homebuyers!
- How is the market expected to behave in 2024? Mark Fleming, the chief economist for First American Financial Corporation, explains, “The outlook for the housing market in 2024 is heavily dependent on the path of inflation and the health of the economy. The Fed’s own projections indicate that their battle with inflation could end soon, which means we may not see any more interest rate hikes.” This will be extremely helpful for homebuyers struggling with affordability.
Is your next home sale and/or purchase happening in 2024, or even 2025? Email me at firstname.lastname@example.org or reach me by cell at 775-233-0682 so we can begin analyzing the best plan for YOU!
~Denise Hallerbach, Broker-Owner, INTERO RENO.