The Reno housing market was THE hottest topic of 2017 here in the Truckee Meadows area of Nevada. Affordability and availability seem to be the hardest for buyers to come by. The following are the top five topics we covered about the Reno housing market over the last year.
The Reno Housing Market
We began the year with a median sale price of $304,000. Inventory started low and just kept getting lower. It really was no surprise to find out that local real estate experts believed they’d see buyers in the Reno housing market paying even more in the spring.
By April, they were already talking about the rental market. RentCafe.com named the Reno rental market as one of its top 10 fastest growing markets out of the 250 cities it looked at. In fact, it came in at #6. They credited this to the large amount of urban redevelopment, relocation of big companies like Tesla, Apple, and Google into the area, as well as airport expansion projects bringing more people into the area, driving up the demand in the Reno housing market. In turn, this forced prices up.
Halfway through the year, the median sale price rose to $340,000. Inventory had dropped by almost 42% from the previous June. But that wasn’t the end of it.
The most recent sales figures for the Reno housing market showed median prices at their highest ever ($355,000). Inventory levels dropped an astonishing 43% from November 2016. And experts believe this will continue to be the case all throughout 2018 and into 2019.
Builders try to keep up with the demand placed on the Reno housing market. But, in order to cover their costs, they must sell in the $400,000 range. According to the latest numbers from the US Census Bureau, the median household income in Reno is $48,815, well below the affordability level for a $400,000 home. While there are some homes available in the $250,000 range, they are few and far between. When they do hit the market, they get scooped up fast. Only more construction can help. But, that takes some time.
If you’re in the market for a new Reno home, don’t despair. Competition is fierce. Get your finances in order now. That way, when you’re ready to put in an offer, you’re not fumbling for loan approval first.