Home prices bounce back to yearly highs in October
The median home price for the Reno-Sparks real estate market bounced back to its yearly high of $575,000 in October. A median sales price of $575,000 seems to be a point of resistance of sorts — as that number was reached in June, and then again in August, but has not been breached.
October’s median of $575,000 is a 2.2% increase over September’s, is up 6.5% year-over-year.
The median sold price per square foot (PPSF) also rose in October 2023 — coming in at $308.63/sq.ft. — an 0.8% increase over September, and up 1.5% over the same period last year.
As predicted in last month’s market report, the number of homes sold in October 2023 fell markedly. 342 homes sold in October, which is a 9.0% decrease from September’s 376 SFRs sold, and a 9.3% decrease from the same period last year. Low inventory and high mortgage interest rates are negatively impacting home sales.
Speaking of inventory, the current available inventory of homes listed and available for purchase is 818. Though this number is 9 more homes available from this time last month, inventory is down a remarkable 32.5% from the same time last year. Homeowners do not want to sell their homes, currently at a 3% mortgage rate, to then have to buy a new home with an 8% mortgage rate.
The number of current pending sales is 412, a 10.2% decrease from this time last month, however is equal to the year-over-year number. Last year’s 412 pending sales resulted in 350 homes sold in November 2022. Let’s see what happens this year.
October’s months’ supply of inventory (MSI) was 2.4 months of supply, which indicates a seller’s market. This figure is calculated by dividing the available inventory by the number of homes sold last month. A balanced market is generally considered to be between four and six months of supply.
October’s median days on market (DOM) came in at 60 days — an increase of 4 days over September’s median DOM. Year-over-year, October’s DOM is 16 days less than October 2022’s DOM number.
The quartile chart below shows the changes to the 1st, 2nd, and 3rd quartiles of monthly sale prices spanning the most recent 13 months.
This interactive chart allows readers to compare sales price trends within a quartile relative to the trends observed in the other quartiles. For example, as can be seen in the chart above, while home sale prices rose across all quartiles, home sale prices in quartiles 1 and 3 (the highest-priced houses and highest-priced houses, respectively) saw sharper increase than the median priced homes — climbing 5.6% and 3.7%, respectively, from September’s numbers. Compare these increases to the 2.2% increase exhibited by the median (or quartile 2).
Unlike the bounce back in the median sales price exhibited with SFRs, the median sales price for condo/townhomes fell in October 2023. The median sales price for condo/townhomes was $315,000, which is a 5.3% decrease from September, however is unchanged from the same period last year.
13 Months of SFR Sales Data
The table below contains the past 13 months of data…
|Month Year||# Sold||Median Sold Price||Sold Price per Sq Ft||Median DOM||# of Actives||# of Pendings|
In summary, the Reno-Sparks real estate market’s performance in October 2023 showcases resilience, with median home prices returning to annual highs despite a cooling in sales volume. This price steadfastness, coupled with a tightening inventory, underscores a continuing demand and the area’s strong appeal. Looking forward, the market remains a seller’s domain, but the uptick in days on the market suggests a need for thoughtful pricing strategies and patience. As we move forward, the balance between supply and rising interest rates will be pivotal in shaping the market’s trajectory as we close out the year.
1. The residential housing market data reported on above covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Market data includes SFR (Single Family Residence) properties only. Data excludes Condo/Townhouse, Manufactured/Modular properties. Data courtesy of the Northern Nevada Regional MLS – November 5, 2023. Note: This information is deemed reliable, but not guaranteed.
For historical home sale data dating back to 1998 click here.
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