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?
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
Opposing forces; millennial wants vs. baby boomers
People love trails