A healthy correction to the Reno real estate market continued through November. White hot velocity has tapered to merely red hot 444 residential transactions in the most recent 30 day period; a 2% decrease from the prior 30 day period and a 17% ebb from the prior year. Meanwhile, median pricing remain up a healthy, though not overcooked, 6.6% year over year.
Interestingly, appreciation in price per square foot is outpacing median price by 1%. This may be the result of slightly smaller homes selling at more premium pricing or simply greater value assigned to the underlying land. With construction cost rising faster than appreciation, land value typically depreciates indicating the smaller home scenario as the more likely driver. This trend, while not dramatic, is common when entry level pricing is in tight supply. Validating this point, price around the regional median between $300,000 – $400,000 (regional median stands at $377,000), is up just 1% however price per square foot now stands at $217; nearly 8% higher than a year ago.
Inventory remains historically low at 2.9% months’ supply though feels almost glutenous after maintaining at 25% that quantity for much of the last few years. Ideally this will slowly moderate toward neutral market conditions over the next few months giving buyers an opportunity to find housing without pressure boarding on insanity. An easy regression will have the local housing economy on steady footing in the event of a recession on a larger stage as job growth continues steadily throughout the region.
AROUND THE REGION:
Flyover video offers a glimpse at Midtown post-road chaos.
While housing remains in short supply, not every project is being green lit.
Wage growth has not kept up with job growth….