January 2018 Reno-Sparks Market Report: Prices Rise Again
Low inventory levels continue to push prices up. According to the January 2018 Reno-Sparks Market Report, the average sale price hit its highest mark in 12 years. Demand hasn’t slowed down either. Year-over-year sales increased. Active inventory has plummeted in the last 12 months. Read on to find out exactly what happened in the Reno-Sparks market last month.
January 2018 Reno-Sparks Market Report
January 2018 Reno-Sparks Market Report – Sale Prices
According to the Reno/Sparks Association of REALTORS@, the average sale price for a single-family home rose to $359,950, 19.2% higher than the same time last year and 4.3% more than December’s average. In fact, we haven’t seen January sale price this high since 2006. And it’s only slightly lower than the $365,000 average reported at that time. The average price-per-square-foot rose 13.2% to $202.84 in January 2017.
January 2018 Reno-Sparks Market Report – Total Sales
A total of 400 single-family homes were sold in the Reno-Sparks area in January 2018. While that decreased 18.7% from the 400 sold in December 2017, it was 9.9% higher than January 2017’s total of 364. New listings rose 20.2% since January 2017, with a reported total of 470. That’s a 50.6% increase from December 2017.
January 2018 Reno-Sparks Market Report – Inventory
January 2018’s active inventory hit a low of 528. That’s 51.1% less than the 1079 reported in January 2017. Currently, the market shows just 1.3 months of inventory available, a 55.5% drop from the three months available just one year prior. This is how long it would take to sell what’s actively on the market right now at the current rate of sales without anything new entering the market. A balanced market would be anywhere from four to six months of inventory. More than that indicates a Buyer’s market. At 1.3 months available, the market heavily favors the Seller.
What Reno Buyers and Sellers Need to Know
With the new tax bill having a larger impact on more expensive markets like the nearby Bay Area of California, we may see even more California Buyers flock to the Reno marketplace this year. To get ahead of future interest rate increases, Buyers could be out looking for a home earlier in the year. That’s great news for Sellers. Experts predict interest rates may hit 5% or more by the end of the year. For Buyers, this means more competition in a low inventory market. Prices will most likely continue to increase for a while. When you’re ready to start looking for your next Reno home or want to put your property on the market, contact me.