By Lindsay Clarke and Nicolle Gust
As we approach spring in the Greater Reno-Sparks area, many eager pre-approved buyers are holding their breath in hopes of new listings hitting the market. Standing Inventory? What’s that? Today’s home buyer has to pull out all of the stops just to contend on a decent home that is listed to for sale. Within minutes, viable listings are receiving multiple offers and flying off the market. With major business moving into northern Nevada such as Tesla, Google, Panasonic and more there looks to be no end in sight for the current housing crunch. “January’s available active inventory was at a low of 528 available listings,” said Doug McIntyre, 2018 Reno Sparks Association of Realtors (RSAR) President. “The declining supply of active inventory is the primary reason we are seeing increasing prices. Looking to the year ahead, with the passage of the new tax bill, Californians will be looking at Nevada as a better place to own real estate.” While northern Nevadans are excited about the future growth, the question remains, “Where is everyone going to live?”
Why is housing inventory so low? For several years following the recession, many homeowners simply didn’t have the equity to sell. Now that there is life blood back in the Reno-Sparks economy many home owners are opting to refinance as opposed to contending with inflated prices. Ironically, prices are raising due to the lack of inventory. According to RSAR, the January 2018 median price was at $360,000. This is a 16 percent increase from January of 2017. Additionally, new home construction cannot seem to keep pace. Because several construction companies and laborers were forced to find work elsewhere during the down-turn, many new home builders are having difficulty finding quality contractors. The Builders Association of Northern Nevada reported only 2000+ permits pulled for new single-family homes in 2017 which pales in comparison to the 5300+ permits pulled for new single-family homes in 2005.
What does this mean to you? If you own a home and you have been considering selling to upgrade, downsize or have experienced a life changing event forcing you to sell, now is the time! RSAR is reporting that it is indeed a seller’s market, at 1.3 months’ supply of inventory. (1.3 months is the time it would take to exhaust the active inventory at the current rate of sales.) Interest rates are still at historic lows and with equity back in most properties, it is an optimum time to sell and buy. It is imperative that you work with a seasoned real estate professional that can help you navigate through the process, especially if you are buying in a seller’s market with a contingency such as selling your current home.
Lindsay Clarke and Nicolle Gust of the Clarke & Gust Group are Residential Real Estate Specialists in Reno-Sparks area with over 15 years of experience. For additional information or a personal market analysis of your home contact firstname.lastname@example.org or visit wesellrenotahoe.com.