Reno-Tahoe Market Update | August

 

Evaluating the many factors that drive supply and demand for Reno real estate reveal many of the market drivers we observe on a daily basis.  Job creation is among the highest in the nation, while unemployment is historically low. The influx of business has fueled major migration to the region while creating a high-income stratum of jobs beyond the gaming and hospitality industry, in many ways, for the first time ever. These factors have driven median price to $400,000 for the first time ever, a healthy 4.7% year over year improvement.

Contradicting this rosy picture are a number of supporting metrics that, depending on perspective, reveal a moderating influence on real estate. The total number of home sales year-to-date is down 7.8% from the same period a year ago. It would be easy to blame a sluggish first quarter during a blustery wintery however the last 30 days trailed the previous month by nearly 18%. Again, an easy explanation for this could be constrained supply however total inventory is up 23% year over year and days to contract have increased 45% to nearly 44 days; admittedly still a very low number historically.

So how can prices continue to appreciate despite swelling supply and potentially decreasing demand? Job growth and a maturing economy have created upward mobility that has allowed for traction in the belly of the market, between $600,000 – $1,000,000 where sales have risen dramatically. Below $600,000, affordability has become a major challenge as ambitious sellers escalate asking prices while entry-level consumers fail to find achievable deals. Any lagging metric is almost entirely found in this category.

Meanwhile around town:

A billion dollar investment coming to Reno.

And other big players making a splash Downtown

There will be density

Nevada’s booming economy is the result of shrewd planning after being devastated during the downturn. Have we reached the limit?

Jobs a plenty

And more coming

Young entrepreneurs are leading the way

With all the businesses moving to the area, nice to see a locally-based group expanding

Looking everywhere for housing opportunities

Consumer trends:

Opposing forces; millennial wants vs. baby boomers

People love trails

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