After an extended period of sizzling growth that culminated in a post-recession high this summer for pricing, “flat” is shaping up to be the new normal for Reno-Sparks residential real estate.
The greater Reno-Sparks housing market posted a median price of $310,000 in September for an existing single-family home, according to the Reno/Sparks Association of Realtors. The price represents a 9 percent increase from the same period last year but also remains unchanged from August.
The flat pricing occurred despite a 6 percent year-over-year increase in the number of houses sold in Reno and Sparks to 626 — a record for September and the second-highest number reported so far in 2016. The RSAR figures are limited to stick-built, single-family homes and does not include condominiums, manufactured houses and new homes.
“We have seen a slowdown in year-over-year median price increases,” said William Process, RSAR President. “We see this as a positive sign of some stabilization.”
The flat rates are a far cry from the double-digit gains seen early in the housing recovery. Appreciation has averaged in the single digits in 2016, though it was still high enough to raise concerns about affordability fueled by an overheated market and limited supply earlier this year. Reno continues to set the pace for the area, alternating between flat pricing and slightly lower or higher numbers in the last few months.
The median price of an existing single-family house in Reno in September was $319,900, up 8 percent from last year but down 2 percent from August. The post-recession peak for Reno was $331,000, which it reached in June. Unit sales were more positive for the Biggest Little City. Reno reported 437 sales of existing single-family homes, up 13 percent and 9 percent respectively on an annual and monthly basis.
Sparks’ sales were relatively flat for September at 189 units. Its median price, however, saw an 11 percent jump to $299,000 from the previous month.
Fernley, which is not factored into the Reno-Sparks tally, saw a slight 1 percent increase in median price to $199,999 month-over-month. Its 43 unit sales also represent a 10 percent increase from the previous year.
Key facts for the Reno-Sparks market from September:
- Historically, the area median price is about 15 percent below the peak reached in 2006.
- New listings in Reno-Sparks for September totaled 691, which is up 9 percent from the same month last year.
- Reno-Sparks continues to see a seller’s market with 3.4 months of inventory based on current sales activity, compared to 4 months in July and August.
- Properties stayed on the market for an average of 90 days in September compared to 86 during the same month last year as well as August 2016.
- On average, seller’s received 98.3 percent of their list price compared to 98.8 percent last year.
WATCH: RENO'S BOOMERANG MARKET
The greater Reno-area housing market is hot. Limited supply and rising prices, however, are causing several issues, with housing affordability at the top of the list. Here are some key statistics. Jason Hidalgo/RGJ