Reno-Sparks Market Report – 2017 Year in Review
The Reno-Sparks Market Report – 2017 Year in Review is in. While the new tax bill may not affect the mortgage interest deduction for most Reno-Sparks homeowners, it could force our neighbors in the higher priced (and heavily taxed) Bay Area of California to leave and buy a property here instead. That could put an even bigger strain on our inventory, pushing prices up even more. Read on to find out how the Reno-Sparks market fared last year.
2017 Reno-Sparks Market Report – Prices
According to the Reno Sparks Association of REALTORS@, 2017 started off with a median sale price of $303,750 for single-family homes in the Reno-Sparks real estate market. It rose steadily to hit its peak of $357,500 in July. After a brief decline in August and September, prices again went up, with November hitting $355,000, the second highest median sale price for the year. Finally, the Reno-Sparks Market Report showed the year ending at $345,000. That marks a 13.6% increase for the calendar year.
The price-per-square-foot showed a huge jump as well. It began the year at $179.44. Then, it steadily rose up until September. But, after a slight decline in October, prices again went up to end the year at $200.31 in December, an 11.6% increase from January 2017.
2017 Reno-Sparks Market Report – Total Sales
2017 Reno-Sparks sales overall were higher than last year. After beginning the year at 358, they peaked in June at 736. Summer was the busiest time of the year, with sales beginning to fall off after school started in the fall. December saw 482 sales for the month, bringing the total for the year to 6,599.
2017 Reno-Sparks Market Report – Inventory
The absorption rate is the time it would take to deplete all current active listings at the current sales rate if no new ones came on the market. A lower number indicates a seller’s market. A higher number means it’s a buyer’s market. 2017 started with four months of inventory available in January 2017. However, it quickly dropped to below two in March and never went back over two months for the rest of the year. The Reno-Sparks Market Report showed just 1.3 months available in December, the lowest amount for the entire year. That definitely puts our market in the seller’s favor.
Reno-Sparks Market Report Summary
The new tax bill that was signed into law at the end of December 2017 brings some changes to Reno-Sparks homeowners. Limits were placed on the mortgage interest deduction. Now, the mortgage cap for the deduction is $750,000. This won’t affect most Reno-Sparks homeowners. However, it may bring more buyers in from higher priced areas like California, especially those living in the high dollar Bay Area. That could push sale prices in the Reno-Sparks area even higher, making affordability an even bigger issue in Reno. Home equity lines of credit are no longer deductible.
High builder costs make Reno homes in the “affordable” range harder to come by. This can be frustrating for the entry-level buyer. If you’re looking for a home for less than $300,000, you may need to look at buying an older home that needs repairs or updating. However, even those are becoming harder to find, with just under 100 currently available. Other options to consider are lower-priced condos and townhomes or something outside the Reno-Sparks market.