Conditions defining the performance of real estate in the Reno-Sparks region during the first half of 2018 are satisfyingly linear. Reduced supply combined with surging demand have resulted in slightly fewer sales at substantially higher prices.
The region made headlines in the second quarter by exceeding a median sale price of $400,000 for the first time ever. This represents a surge of nearly 16% over the same period last year. Moreover, the luxury segment, defined as the top 5% of transactions by price, have leapt by nearly 50% to $1,110,000. 183 homes have traded year-to-date above $1 million, far and away the largest performance for luxury real estate for the region. Notably, 12 properties have sold in the South and Southwest Reno luxury communities for prices at or above $2,500,000.
Meanwhile, inventory and days on market continue to dwindle, creating increasingly optimal conditions for would-be sellers. 1.6 months’ supply equate to 32 days to contract on average creating dramatic imbalance in seller’s favor.
Yet, the cycle continues to be perpetuated by more and more migration to Reno, largely from Californians being squeezed out of even tighter markets. The City of Reno is considering progressive methods of addressing the housing shortfall via accessory dwelling units while contractors provide insight on how to more efficiently create new stock.
Housing crisis or not, not every project is being rubber stamped for approval.
Elsewhere around the region:
Five additional technology companies coming to Reno.
Speaking of soaring, new charter air service comes to Reno while ground transportation has an entirely new option:
Reno Ground Transportation – Lime Bikes
Grow with Google offers to help existing workforce adapt to newer technologies and a changing job landscape:
Nevada gets things done: