The Reno/Sparks Association of REALTORS (RSAR) released its home sale report on what the real estate market has been doing in the last few months and it seems like it is finally starting to stabilize. According to its report based off data collected through the Northern Nevada Regional Multiple Listing Service, the median price of a home was up less than one percent from earlier this year and a home was on the market an average of 38 days before it went into escrow.
Around 1,300 homes were on the market in September 2022, more than double what was available to buy in September 2021.
In the Sparks/Spanish Springs area, there were 149 existing single-family homes sold last month, a 17.7 percent decrease from last year and an eight percent increase from August 2022. The median sales price of a home in Sparks was $515,000, denoting a two percent increase from last year and a 2.1 percent decrease from last month. The median sales price for an existing condominium/townhome in Sparks was $285,000, a 4.6 percent increase from this time last year.
This data indicates that although home prices will likely never go below what they were pre-pandemic, they do seem to be settling into the “new norm” post-pandemic prices. There is still not much inventory on the market- likely because there is still an actual shortage of homes compared to population- but a home is staying on the market longer until it goes under contract. This may mean that people aren’t moving around as much as they did during COVID-19 or maybe their financial status has changed.
When asked if the increased mortgage interest rates are a reason homes are on the market longer, Incline Village Realtor Tanya Soule said that we’ve had very low interest rates for a long time and that it is going back to normal.
“Today’s mortgage interest rates remain very moderate compared to historic averages,” adds RSAR President Sarah Scattini.
The interest rate may not be a key factor in someone buying their first home, and they can always refinance down the line. She added that people she sold homes to in Lake Tahoe during the pandemic are happy with their new lifestyle, and their homes have held their value.
However, there does seem to be a lot more inventory available in the Sparks area. There were 392 homes for sale in Sparks last month, more than double than the 156 single family homes that were for sale in September 2021. Only 126 homes were on the market in September 2020.
This past summer, Scattini told the Sparks Tribune that sellers who are getting ready to move should pay close attention to what they price their homes at to ensure they get an offer, as we are not seeing the crazy bidding wars like what happened in 2020 and early 2021. However, buyers should also not wait and miss out on an opportunity since there is not much inventory.
Traditionally, prices do tend to drop in the autumn, though, making this an ideal time to buy.
“Savvy homebuyers are finding excellent opportunities among the homes available for purchase across various price ranges,” Scattini says.
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