The 2020 real estate bonanza that dominated the last year shows no signs of abatement in the early days of a new year. As certain segments continue to rebound while others continue to languish in a COVID paralysis, demand for housing in the Reno – Tahoe area remains on a steady upward trajectory. For many consumers, the current demand is a function of upward mobility in an effort to find a more suitable habitat during a time when the home has become ever more central to everyday life. More many others, this is a migration, mostly from Northern Californians, to a region that promises greater affordability, ample economic opportunity, and an elevated quality of life.
January saw 778 residential transactions close throughout the region. This is a slight downtick from the same period in 2020 based entirely on rapidly evaporating supply. As evidence, all other metrics show dramatic growth over the same period including median price (+7.5%), the average price (+33% – indicative of a surge in premium real estate), days on market (-32%) and percentage of asking price (99%; +3%).
Currently, supply sits at just over 2 months inventory but much of that is ambitiously priced or unconventional offerings. Achievable supply is much tighter. A mere 1.5 months’ supply exists below $1,000,000. Interestingly, the activity from $500,000 to $1,000,000 is roughly proportionate to that below $500,000. This may be an indicator of the economy whereby those in industries unaffected by current restrictions are finding the means to purchase whereas those in service and other lower-end industries, generally more inclined to be buying at the lower end of the market, are finding it more difficult to make such a purchase.
Around Reno – Tahoe:
- Reno climbs the list among the best performing cities.
- The Milken Institute recognizes Reno for its diversified economy and job growth.
- Reno’s diversified economy is faring better than Southern Nevada’s service-oriented market.
- EDAWN recognized new industry as the key to economic success in Reno.
- Reno has gone viral… for multifamily property sales.
- High demand and low supply = rising prices
- The median price within Reno city limits is now half a million dollars
- Rents are increasing as rapidly as the price of homes