Welcome to the Reno real estate 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 reported above covers the cities of Reno, Nevada, and Sparks, Nevada. Based on the data provided in the February 2023 Market Report, it seems that the Reno housing market is continuing to experience growth, albeit at a slower pace than in previous years. The median home sales price for the Reno, Nevada metro increased by 1.0 percent over January's median sales price, reaching $515,000 in February. However, year-over-year, February's median sales price is down by 7.4 percent.
Despite the slight increase in the median sales price, the median sold price per square foot (PPSF) decreased by 0.8 percent to $286.73/sq.ft. in February. Year-over-year, February's median sold PPSF was down by 8.8 percent. This suggests that homebuyers are getting more square footage for their money compared to last year.
It is worth noting that the number of homes sold in February increased by 15.5 percent from the previous month, reaching a total of 276 homes sold. However, year-over-year, home sales are down by 27.0 percent. This indicates that the Reno housing market may be experiencing a slowdown in demand.
Furthermore, available inventory fell by 14.7 percent from the previous month, with only 550 homes currently available for purchase in the Reno-Sparks market. This represents just a two-month supply of inventory, which is quite low. Prospective home sellers may be hesitant to put their homes on the market given the higher interest rates for new mortgages. Despite the monthly drop in available inventory, year-over-year, available inventory is up by 104.5 percent.
Finally, February's median days on market (DOM) remained unchanged from January's median DOM at 86 days. Year-over-year, February's DOM is double that of February 2022's DOM number. This suggests that homes are taking longer to sell in the current market.
Overall, the Reno housing market is showing some signs of growth, albeit at a slower pace. While the median sales price increased slightly in February, it is still lower than the previous year. However, the increase in pending sales may indicate a higher demand in the near future. The low inventory and longer days on market may pose challenges for homebuyers, but it could present opportunities for sellers looking to maximize their profits.
Reno Real Estate Market Forecast 2023-2024
Based on the Zillow data, the Reno real estate market is expected to experience a slight decline in home values in the coming year. According to Zillow's forecast, the Reno MSA (Metropolitan Statistical Area) is projected to decline by 0.2% by March 2023, 1.1% by May 2023, and 1.6% by February 2024.
The average home value in Reno is currently $510,283, which is down 1.9% from the previous year. Additionally, homes are going pending in approximately 49 days, indicating a moderately competitive market. The median sale to list ratio as of January 31, 2023, was 0.977, indicating that homes are generally selling for slightly under their asking price. However, 12.8% of homes are selling for over their list price, while 68.2% of homes are selling under their list price.
Overall, the Reno real estate market forecast for 2023-2024 suggests a modest decline in home values. However, this decline is not expected to be significant, and the market is likely to remain relatively stable. Despite the decline in home values, the moderately competitive market and the percentage of homes selling over their list price indicate that there may still be opportunities for both buyers and sellers in the Reno area.
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.
One of the biggest draws of the Reno real estate market is its affordability, with a median home value of $510,283, which has decreased by 1.9% over the past year. In the context of Reno's housing market, a median home value of $510,283 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.