Let's Unpack the
Reno-Sparks Housing Market Data for August 2024
Hey everyone, and welcome back to the blog! If you’re new here, my name is Sarah Sperber, a local REALTOR serving the Reno-Sparks area in Northern Nevada. Every week, I share insights into the Nevada real estate market, provide buyer advice, and showcase what it’s like living in Reno. Today’s post is a deep dive into the Reno-Sparks housing market data for August 2024. Whether you’re buying, selling, or just curious about the market, this recap is for you!
Reno-Sparks Housing
Market Data for August
Each month, our local MLS releases key performance indicators (KPIs) that give us a clear picture of how the market is performing, and August certainly didn’t disappoint. While there have been some shifts, both in terms of pricing and activity, the market is showing resilience.
Average Sale Price
The average selling price saw a slight increase in August, ticking up 8% month-over-month, landing at $610,000. While this might sound promising, the year-over-year increase is only 6.1%, showing that the market has plateaued slightly in terms of price growth. In fact, the market feels a bit “stuck,” especially with other KPIs we’ll get into shortly.
Closed Sales
Drop Significantly
Here’s where things get interesting. The number of closed sales dropped by 13.6% from July to August and by a whopping 133% year-over-year. That leaves us with just 368 closed sales for August—a significant decrease considering Reno-Sparks typically sees a busy summer season.
This drop in activity indicates a slower-than-expected market, which is quite unusual given the typical market conditions during this time of year. It’s not just slow; it feels like an outlier for Northern Nevada real estate. Let’s explore why.
Average Days
on Market Soar
One of the most striking stats is the average days to contract, which saw a significant change. It increased by 36.8% month-over-month and a staggering 62.5% year-over-year, landing at an average of 26 days.
If you’re not familiar, “days to contract” is the time from when a home is listed to when it goes under contract. In most markets, 26 days would be pretty reasonable. However, in the Reno-Sparks market, where homes were flying off the shelves just a few months ago, this shift is quite notable.
This longer period on the market suggests buyers are more cautious or waiting for better financing opportunities—something we’ll discuss more when we talk about interest rates.
Percentage of List Price Received:
Still Strong
Despite the slowdown in sales and increased days on market, there’s good news for sellers: properties are still selling for almost what they’re listed at. The percentage of list price received remains strong at 99%. This means homes that are priced correctly are still attracting serious buyers and closing near their asking price.
Price Per Square
Foot Holds Steady
Another positive sign is that the median price per square foot increased 1.7% month-over-month, landing at $322 per square foot. Year-over-year, this figure has also increased by 3.4%. While this might seem modest, it’s a sign that prices are holding steady despite the market slowdown.
Interest Rates:
A Market Stumbling Block?
Interest rates continue to play a major role in shaping the real estate landscape. Many homeowners who bought between 2020 and 2022 locked in mortgage interest rates as low as 2-4%, making it much more affordable to stay put rather than upgrade to a new home at today’s rates of 6-7%. This creates a “locked market” scenario where people are hesitant to sell their starter homes and move up.
For new buyers, the higher rates mean larger monthly payments, despite the market’s cooling prices. That said, there’s good news on the horizon. Rates have begun to soften, and there’s talk of more substantial rate cuts coming soon. When that happens, we may see more buyers enter the market, which could potentially push prices higher again.
Inventory Trends:
A Bit of a Bottleneck
Inventory remains tight. The number of new listings in August decreased by 7.5% month-over-month and by nearly 5% year-over-year, leaving us with just 504 new listings. For a city the size of Reno-Sparks, this isn’t a lot of new inventory.
Active inventory, however, increased 11.4% year-over-year, with 960 active listings available at the end of August. This modest rise in inventory coupled with the slowdown in sales means there’s a bit of breathing room for buyers—at least for now.
Monthly Supply of
Inventory: A Telling Sign
One key metric we track is the monthly supply of inventory, which refers to how long it would take for all active homes on the market to sell at the current pace. In August, the monthly supply increased by 12.7% month-over-month and 28% year-over-year, landing at 2.6 months.
This is still a relatively low figure, meaning we’re still in a seller’s market, but things are slowly shifting toward balance. If inventory continues to rise and demand remains tepid, we could see a shift into a buyer’s market over the coming months.
What This Means for Buyers
For buyers, now is an interesting time to consider entering the market. Interest rates are still high, but if you can lock in a lower rate with a lender as rates begin to fall, you’ll have a competitive edge over other buyers. Getting pre-approved and ready to move quickly can give you a leg up when competition inevitably returns.
I always recommend working with a good lender, and if you need any referrals, I have some fantastic lending partners that I’d be happy to connect you with.
What This Means for Sellers
For sellers, this is a critical moment. If you’ve been considering listing your home but have been hesitant due to the slower market, now might be the time to act. As rates drop, more buyers will re-enter the market, and competition for homes will heat up again.
Make sure your home is priced right and staged properly to attract buyers. High-quality media like professional photography and drone footage can make a big difference in setting your listing apart. If your home has been sitting on the market, consider a small price adjustment to bring it back into the algorithm or discuss staging with your agent to boost its appeal.
Final Thoughts
In summary, the Reno-Sparks housing market data is in a bit of a holding pattern as we head into the latter half of 2024. However, changes are on the horizon, particularly when it comes to interest rates. Sellers should prepare now, and buyers should keep an eye on the market for the best opportunities.
If you have any questions about your specific situation or would like to discuss buying or selling in the Reno-Sparks area, feel free to contact me! I’d love to help guide you through this evolving market.
Thanks for reading, and as always, stay tuned for next month’s update!