Welcome to the Reno housing market report for 2023. In this report, we will take a look at the current state of the housing market in Reno, Nevada, including trends and forecasts for the coming year. With Reno's reputation as a popular destination for outdoor enthusiasts, retirees, and tech industry workers, we'll explore what impact these factors have on the local real estate market. So, if you're interested in buying or selling property in the area, keep reading to learn more about the Reno real estate market.
Reno/Sparks Housing Market Trends for 2023
The following residential housing market data covers the cities of Reno, Nevada, and Sparks, Nevada. In July 2023, the real estate market in Reno and Sparks, Nevada exhibited a pause in its upward trajectory. Following five consecutive months of growth, the median home price experienced a slight dip. The market indicators reflected a temporary pullback in home sales and a rise in inventory levels.
Median Home Price and Sales
The median sales price for single-family homes (SFRs) in July 2023 settled at $573,000, marking a modest 0.3% decline from the previous month. This also represented a 0.3% decrease compared to the same period last year. Similarly, the median sold price per square foot (PPSF) fell to $304.58, reflecting a 0.5% drop from June and a 4.8% decrease from the same time last year.
Home Sales Statistics
The total number of homes sold in July 2023 amounted to 434, indicating a 3.1% decrease from the previous month. However, this figure represented a 1.4% increase when compared to the same period last year. On the other hand, the current inventory of available homes for purchase saw a 5.7% rise from the previous month, totaling 794 homes. Notably, this inventory was 40.2% lower than the same time last year.
Pending Sales and Months' Supply
The number of pending sales in July 2023 stood at 507, showing a 13.2% decrease from the previous month and a 7.7% decrease from the same period last year. The months' supply of inventory (MSI) for July came in at 1.8 months, indicating a seller's market. This metric suggests a strong demand and low supply, favoring sellers. A balanced market typically features between four and six months of supply.
Days on Market (DOM)
The median days on market (DOM) for July 2023 remained consistent at 49 days, the same as June's median DOM. Compared to July 2022, there was a decrease of 1 day in DOM, indicating a slightly faster pace of sales year-over-year.
Market Trends by Quartile
Examining quartile-based trends, home sale prices in quartiles 2 and 3 experienced declines of 0.3% and 8.3%, respectively, in July 2023. In contrast, quartile 1, representing the lowest-priced houses, saw a 0.5% increase in sales prices compared to the previous month.
The median sales price for condo/townhomes in July 2023 was $330,000, indicating a 1.5% decrease from the previous month and a more substantial 9.6% decrease from the same period last year.
The Reno-Sparks real estate market demonstrated growth during the first half of the year, but this momentum appeared to level off as the market entered the second half of 2023. This pattern aligns with historical seasonal trends. Despite the moderation, the market still favored sellers, as indicated by the low months' supply of inventory.
The residential housing market data reported above covers the cities of Reno, Nevada, and Sparks, Nevada [NNRMLS Area #100]. Market data includes SFR (Single Family Residence) properties only. Data excludes Condo/Townhouse, Manufactured/Modular properties. Data courtesy of the Northern Nevada Regional MLS – August 11, 2023. Note: This information is deemed reliable, but not guaranteed.
Reno Housing Market Forecast 2023-2024
The Reno housing market has experienced fluctuations over the past year, with Zillow reporting an average home value of $524,127, reflecting a 5.6% decrease from the previous year. Interestingly, homes in Reno tend to go pending in approximately 12 days, suggesting a brisk pace of sales. As of June 30, 2023, the median sale-to-list ratio stands at 0.997, indicating homes are generally selling very close to their list prices.
In terms of sales performance, around 26.1% of sales have been achieved over the list price, while 50.8% of sales have been under the list price, as of June 30, 2023. The median days to pending sales as of July 31, 2023, is 12 days, indicating the swift movement of properties from listing to pending status.
Reno MSA Housing Market Forecast
Looking ahead, the Reno Metropolitan Statistical Area (MSA) housing market is projected to show positive growth. As of July 31, 2023, the forecast indicates a 0.6% increase in home values by August 31, 2023, and a 1% increase by October 31, 2023. Over a longer horizon, the Reno MSA is expected to experience a more substantial 4.2% increase in home values by July 31, 2024.
Are Home Prices Dropping in Reno, NV?
The question of whether home prices are dropping in Reno, NV has been a topic of interest for potential buyers and sellers alike. According to recent data provided by Zillow, the average home value in Reno stands at $524,127, representing a 5.6% decrease over the past year. While this decrease might raise eyebrows, it's important to recognize that real estate markets are dynamic and can experience short-term fluctuations.
It's worth noting that factors such as local economic conditions, supply and demand dynamics, and even seasonal trends can contribute to shifts in home prices.
Will the Reno Housing Market Crash?
The speculation about a potential housing market crash in Reno has prompted discussions and concerns. However, predicting market crashes can be complex and challenging. It's important to consider several factors before arriving at any conclusions. The current real estate market climate is influenced by a combination of local and national economic conditions, mortgage interest rates, employment rates, and housing demand.
Historically, real estate markets experience cycles of ups and downs. While a significant crash cannot be ruled out entirely, it's essential to assess the overall market conditions and consult with experts before making assumptions.
Is It a Good Time to Buy a House in Reno, Nevada?
The decision to buy a house in Reno, Nevada depends on a variety of individual factors. While the current market might seem uncertain due to price fluctuations and speculations, there are aspects that could make it a favorable time for buyers.
- Interest Rates: Mortgage interest rates are a crucial consideration for buyers. If rates are low, it could translate into more affordable monthly payments.
- Personal Finances: Assessing your financial situation, job stability, and ability to afford homeownership is essential.
- Long-Term Goals: Consider your long-term plans. If you plan to stay in the area for several years, buying could be a prudent investment.
Ultimately, the decision to buy a house should be based on careful consideration of your financial readiness, life circumstances, and thorough research into the local market.
The Reno housing market presents a mix of price trends, market stability questions, and buying opportunities. While the average home value has decreased over the past year, it's essential to look beyond the short-term figures and consider the broader context of the market. Predicting market crashes is challenging, and individual decisions to buy a house should be based on personal financial readiness and long-term goals. Consulting with real estate professionals and staying informed about market trends will guide you in making the right choices for your housing needs in Reno, Nevada.
Reno Real Estate Investment Overview
Reno, Nevada is a popular destination for real estate investors due to its strong economy, growing population, and affordable housing market. The city offers a range of recreational opportunities and attractions, including nearby Lake Tahoe and the Sierra Nevada mountains, as well as a thriving business environment with a diverse range of industries, from technology to healthcare and logistics.
Investing in the Reno real estate market offers a dynamic landscape with both opportunities and considerations. While recent data indicates a 5.6% decrease in average home values over the past year, it's important to recognize that real estate markets often exhibit short-term fluctuations.
In the context of Reno's housing market, a median home value may not be considered affordable for everyone. However, compared to other popular real estate markets in the United States, such as San Francisco, New York City, or Los Angeles, Reno's housing market may be relatively more affordable. It is important to note that affordability is also influenced by factors such as local median income levels, employment opportunities, and the overall cost of living. In addition, properties tend to go pending within an average of 49 days, making it a fast-moving market.
Investors have many reasons to consider Reno real estate, including the potential for rental income from the city's growing population, the chance to take advantage of a strong economy with numerous job opportunities, and the possibility of diversifying their investment portfolios with a range of property types, from single-family homes to multi-unit apartment buildings. The city's thriving tourism industry, with numerous entertainment options, including casinos and music festivals, also presents opportunities for investors to benefit from short-term rental income.
Here are the top reasons to consider investing in Reno real estate:
Strong Economic Growth:
Reno's economy has seen a significant boost in recent years, with job growth outpacing the national average. The city's diverse economy includes industries such as healthcare, technology, logistics, and manufacturing, which have all seen growth in recent years. This economic growth has resulted in increased demand for housing, making it an attractive market for real estate investors. Moreover, the city is a hub for tech startups and small businesses, which are continually looking to expand and hire.
Affordable Housing Market:
Despite the average home value in Reno being over $500,000, it is still relatively affordable compared to other western cities such as San Francisco and Seattle. This affordability has made Reno an attractive destination for people looking to relocate from more expensive areas, increasing demand for housing and presenting opportunities for real estate investors. Additionally, the city has a wide range of housing options, from single-family homes to condos and townhouses, allowing investors to diversify their portfolios.
Favorable Tax Environment:
Nevada has a business-friendly tax environment, with no state income tax and relatively low property taxes. This favorable tax environment can be beneficial for real estate investors, as it can increase potential returns on investment. Moreover, the state's tax structure is favorable to businesses, making it an attractive location for corporations, which can result in increased demand for housing.
Reno is a popular tourist destination, attracting visitors to its many attractions, such as Lake Tahoe and the Reno Air Races. This tourism industry can provide a stable source of income for real estate investors through short-term rentals and vacation homes. Furthermore, the city hosts several events and festivals throughout the year, such as the Reno Rodeo, Hot August Nights, and the Great Reno Balloon Race, which can boost the demand for short-term rentals.
Growing Rental Market:
As home prices continue to rise, more people are turning to rent as a more affordable housing option. This has resulted in a growing rental market in Reno, making it an attractive market for real estate investors looking to generate passive income. The city's growing economy and population growth also contribute to this trend, providing a stable demand for rental properties.
Proximity to Major Cities:
Reno's proximity to major cities such as San Francisco, Sacramento, and Las Vegas makes it an attractive location for businesses and residents alike. This proximity can drive economic growth and increase demand for housing, making it an attractive market for real estate investors. Furthermore, the city's location near Lake Tahoe and the Sierra Nevada mountains makes it an ideal destination for outdoor enthusiasts, contributing to its overall appeal.
Reno's population has been steadily growing in recent years, with an expected growth rate of 2.7% by 2025. This population growth can increase demand for housing, presenting opportunities for real estate investors to capitalize on this trend. Additionally, the city's population growth is driven by both domestic and international migration, providing a diverse pool of potential renters and buyers for real estate investors.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Reno.
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Las Vegas is another hot real estate market in the state of Nevada. Las Vegas is a hot spot for real estate investment due to its strong economy, growing population, low taxes, and tourism industry. The city's affordable housing market and proximity to major cities like Los Angeles also make it an attractive destination for investors. Additionally, Las Vegas is home to a variety of entertainment options, including casinos, music festivals, and sporting events, which can provide a stable source of income for real estate investors through short-term rentals and vacation homes.
On the east of Nevada lies the state of Utah, where you can consider investing in Salt Lake City. Salt Lake City is emerging as a hot spot for real estate investment due to its growing population, strong job market, and relatively affordable housing market. The city's diverse economy, which includes industries such as healthcare, education, and technology, has resulted in job growth outpacing the national average.
This economic growth, combined with the city's stunning natural beauty and recreational opportunities, has attracted people from across the country, driving demand for housing. Salt Lake City's favorable tax environment, with no state income tax and relatively low property taxes, also make it an attractive market for real estate investors looking to maximize their returns. Additionally, the city's growing rental market and proximity to major cities such as Denver and Las Vegas provide further opportunities for investors.
Let us know which real estate markets in the United States you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.