October 2023 Market Report for Reno and Sparks, Nevada

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 lowest-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[1]

Past 13 Months of Home Sales Data
Month Year # Sold Median Sold Price Sold Price per Sq Ft Median DOM # of Actives # of Pendings
Oct 2023 342 $562,500 $308.63 60 818 412
Sep 2023 376 $562,500 $306.05 54 809 459
Aug 2023 430 $575,000 $310.79 55 820 501
Jul 2023 439 $570,000 $304.57 49 794 507
Jun 2023 448 $575,000 $306.21 49 751 584
May 2023 418 $555,000 $295.47 49 694 560
Apr 2023 373 $539,950 $292.68 58 606 532
Mar 2023 406 $529,250 $287.30 75 550 512
Feb 2023 276 $512,500 $286.73 86 550 523
Jan 2023 239 $510,000 $289.13 86 645 465
Dec 2022 337 $519,950 $284.81 79 795 327
Nov 2022 350 $550,000 $294.23 73 1,012 376
Oct 2022 377 $540,000 $304.17 76 1,212 412

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.

I look forward to your comments below.

Thinking of selling your home and looking for guidance in the current market? Schedule a consultation with me to get personalized advice on your real estate goals.

For historical home sale data dating back to 1998 click here.

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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.

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