This report will help you stay informed for your buying and selling decisions by breaking down the numbers and finding the trends.
We are seeing the last of the dramatic year-over-year changes, as the effects of the extremely low interest rates, low inventory, and high buyer demand began to change in the 2nd quarter of last year. Comparing March 2022 to March 2023, the number of homes on the market has increased by 77%, a healthy return for home buyers. While sales decreased by 22% and median prices decreased by 8%, days on the market increased by 85%.
After the extraordinary winter we have experienced in Northern Nevada, we are finally seeing more normal seasonal trends. The good news is even the everlasting winter did not stop people from buying and selling real estate in March.
Upon examining the statistics from Q1 of 2023, it is evident that the demand for the market is gaining momentum. Despite a 30% increase in new listings in March, the active inventory has decreased due to higher absorption. Additionally, there has been a month-over-month increase in new pending and closed sales, as well as a rise in median prices throughout the first quarter of 2023. Furthermore, the average time it takes for a listing to reach a contract has reduced significantly from 58 days to 18 days in the last three months, indicating a faster-paced market and a stronger demand in the region.
Months of Inventory is the amount of time it would take to sell all existing homes for sale if no additional homes entered the market. It is a great marker to understand supply vs. demand in real estate and whether it’s a more favorable buyer’s market or seller’s market. A five to six month supply of homes historically represents a balanced market, where neither buyers or sellers have an advantage.
We currently have a 4-month supply of homes in the $1,500,000+ price range compared to March of 2019, when supply was 1 year. The majority of sales (64%) have occurred in the $400,000 – $700,000 range in our region this year. For that price range, months supply of inventory is at 0.7 months (25 days).
If you have any questions about this report, real estate in our region, or the value of your home, don’t hesitate to reach out. It would be a pleasure to assist you.