Reno-Sparks Housing Market Remains Strong Amid High Prices and Interest RatesReno-Sparks Housing Market Remains Strong Amid High Prices and Interest Rates The housing market in Reno and Sparks continues to see robust activity, with average home prices remaining near record highs. According to data from the Reno Gazette Journal, the average home sale price in June 2024 was $630,000 for Reno and $557,000 for Sparks. These prices are only slightly below the all-time highs set in 2022. Despite the high prices, home sales have only declined slightly. Reno-Sparks saw 399 existing homes sold in June, down 8% from the previous year. Active inventory has also increased, with 849 homes listed for sale. However, high mortgage rates remain a drag on the housing market. The number of mortgage applications has fallen in recent weeks as rates hover around 7%. This makes it more challenging for buyers to afford homes, especially given the elevated home prices. Key Highlights from Reno-Sparks Housing Data for June 2024: * Average home price for existing single-family homes: $600,000 (up 2% from May) * Active inventory: 849 homes (up 13% year-over-year) * New listings: 541 (down 4% from June 2023) * Days to contract: 15 days (unchanged from last year) Outlook for the Reno-Sparks Housing Market Experts expect home price growth to slow somewhat in the coming months due to rising inventory and lower demand. However, they also predict that mortgage rates will remain above 6% for the next few years, which will continue to challenge affordability. For homebuyers, it may become harder to find affordable options in the Reno-Sparks market. They may need to consider lower-priced homes, downsizing, or looking in less competitive areas.
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.
