The first signs of a market cooling may be revealing themselves as transactions lag and inventory accumulates in the greater Reno area. The total number of transactions has been declining for much of 2018 which was easily blamed on an inventory shortage that could be described as extreme. However, new listings have jumped 10% month over month and the market now stands at 2.8 months’ supply; a 30% catapult over this time last year. While this remains tilted in the seller’s favor, it is much close to equilibrium than this market has seen in quite some time.
Whether this is a normal lull in a still-hot market or a correction on the heels of unprecedented growth it yet to be seen. Neither would be unexpected given the unsustainable trajectory of the regional market in recent years.
As is often the case when a market peaks out, the sellers remain ambitious continuing to push asking prices well beyond comparable values; consistent with national trends. It often takes some period of time for the lack of activity to translate to into reduced asking prices to actually gauge the trajectory of the market. Despite flagging sales volume, median price has continued to grow at an extremely robust 6.4% year over year indicative of fewer transactions at higher dollar amounts.
It stands to reason that entry-level price points will be the most sensitive to aggressive asking prices. Below $750,000, the statistical performance of the market is even more extreme were transaction volume is lagging by 25%.
Conversely, the high end of the market, those priced above $750,000, remain fairly robust with transaction volume growing nearly 9% year over year. Though inventory in this category is up as well, pricing continues to swell indicative to executive-level demand at an all-time high.
Some cooling was inevitable and, ultimately, healthy for the market. The fundamental elements of demand remain sound and Nevada is the fastest growing state for job creation in the county. Reno remains a hotbed of innovation including several of the fastest growing companies in the nation.
Elsewhere around Reno:
Workforce housing projects continue even as for-sale supply increases.
Google is all in on Reno.
Basin Street Properties scores a new president from prestigious resort development company.
Rural broadband is expanding in Northern Nevada opening up channels for commerce beyond urban centers.
Virtual reality to train Nevada’s new workforce?