Reno-Sparks Housing Market UpdateReno-Sparks Housing Market Update July 10, 2024 Record-Breaking Prices Persist in Reno and Sparks Homebuyers seeking affordability face challenges as average home prices remain near all-time highs in Reno and Sparks. Reno * Median home sale price: $630,000 (June 2024) * Third-highest median price ever recorded * Less than 1% decrease from May 2024 but within range of June 2022 record ($635,000) Sparks * Median home sale price: $557,000 (June 2024) * Up 3% from May 2024 * Second-highest average house price ever recorded in Sparks Washoe County * Median home price: $600,000 (excluding Incline Village) * Second-highest median home price ever recorded for Reno-Sparks * Equal to May 2022 record Existing Home Sales Decline * Reno-Sparks saw a decrease in existing home sales in June 2024: * 399 homes sold, down 8% year-over-year * 33% decline from pre-pandemic levels (June 2019) Active Inventory Increases * Active inventory of existing single-family homes in Reno-Sparks rose 13% in June 2024, reaching 849 homes. * New listings, however, fell 4% to 541 units. High Interest Rates Hinder Market * High mortgage rates continue to impact home sales despite an increase in FHA and VA loan applications nationally. * National Association of Realtors predicts mortgage rates to remain above 6% until 2025. Outlook * Home price growth is expected to slow due to increased inventory and lower demand. * Home prices are predicted to decline in the coming months, but remain relatively high in Reno-Sparks.
The average home price for existing single-family homes in Reno and Sparks is once again strikingly close to all records.
Homebuyers looking for lower prices will have to look harder, as the average price for existing homes in Reno and Sparks is still near the all-time highs in both cities.
According to an analysis by the Reno Gazette Journal, the average home sale price in June was $630,000. That’s down less than one percent from May but still within range of the record $635,000 set in June 2022.
The number is the third-highest median price ever recorded for Reno. Sierra Nevada Realtors’ housing data is limited to existing, custom-built, single-family homes and excludes condos, manufactured homes, and new homes.
Not to be outdone, neighboring Sparks recorded the second highest average house price during the same period.
The median home sales price in June was $557,000, up 3% from the previous month. Only Sparks’ May 2022 median price of $570,000 was higher.
The median home prices for Reno and Sparks were enough to increase the median home price in Washoe County by 2% to $600,000. That number, which excludes Incline Village, is equal to the second highest median home price ever recorded for Reno-Sparks.
The record amount for Washoe County is $615,000 and was set in May 2022.
How are existing home sales in Reno-Sparks?
Average home prices in Reno-Sparks remain high despite a decline in condo sales.
Reno-Sparks saw 399 existing homes sold in June, down 8% from last year. Unit sales are also down a third from three years ago during the COVID-19 pandemic, when Reno-Sparks reported 622 existing homes sold.
Before the pandemic, the area was selling an average of about 500 homes per month.
Active inventory, meanwhile, saw a 13% increase with 849 homes listed for sale on the market. However, new listings fell 4% to 541 units as a high-interest environment continues to put pressure on the housing market.
The median number of days it takes for an existing home to close is 15 days, unchanged from the same period last year.
High interest rates remain a drag on the housing market
High mortgage rates continue to negatively impact home sales, not only in Reno-Sparks but across the country.
According to the Mortgage Bankers Association, mortgage applications fell 0.2% in the first week of July, although an increase in FHA and VA loan applications helped boost buying activity.
“Mortgage applications remained virtually flat last week as mortgage rates remained around 7%,” said Joel Kan, vice president and deputy chief economist for the MBA.
Kan added that the number of refinancing applications fell for the fourth week in a row.
“While home values have increased significantly in recent years, most borrowers don’t have much incentive to refinance at current rates,” Kan said.
Markets like Reno are also facing a dual impact: high home prices coupled with high interest rates, making it difficult to buy a home.
Higher-than-expected inflation dashed hopes for a rate cut by the Federal Reserve in June, although a rate cut later this year is still considered a possibility. Even if a rate cut does occur this year, the National Association of Realtors predicts mortgage rates will remain above 6% in 2024 and 2025.
Lawrence Yun, chief economist at NAR, expects home price growth to slow somewhat.
“The market is at an interesting point with rising inventory and lower demand,” Yun said.
“Supply and demand movements suggest that house prices will decline in the coming months.
Reno-Sparks June 2024 Housing Data
Here are the combined housing numbers for Reno-Sparks in June:
- $600,000: The average price for an existing single-family home increased by 2% compared to May and by 4% compared to June 2023.
- 849: The active inventory of existing single-family homes in Reno-Sparks is up 13% year-over-year.
- 541: The number of new listings on the housing market in June fell by 4% compared to a year ago.
- 15 days: The average number of days it takes for a home to reach contract is unchanged from last year, but longer than the 10 days in May of this year.
