Tight supply throughout all segments of the Reno-Tahoe real estate market has generated substantial pricing gains while suppressing the total number of sales. Ten weeks’ supply-constrained the total number of residential transactions in February by 8% compared to the same period a year ago. While still reduced, this is a small improvement from last month which transacted 3% fewer sales.
Conversely, the total dollar volume for residential transactions rose by nearly 20% despite fewer deals indicative of demand overwhelming available supply but also of a consumer with a rising wealth profile able to afford substantially more house than a year ago. In February, median pricing rose 15% over the same period a year ago providing a strong benchmark for the overall market. Average price, a metric more volatile based upon premium pricing, increased by nearly 30% to a figure above $500,000. Move-up buyers within the region as well as those importing equity from other regions, including Northern California, appear to have substantially greater purchasing power resulting in increased sales in premium neighborhoods.
Further evidence of a frenzied market is visible through a Days on Market tally nearly cut in half from a year ago. In a season typically slow for primary home purchases, 82 days on market in 2020 was a seasonally appropriate figure for a stable market. The most recent month reduced that figure to just 49 days demonstrating that a majority of properties are listed and fully transacted within 6 weeks of coming to market.
Around Reno – Tahoe:
- Affordable housing supply has become an impediment to growing Reno’s economy
- Many of those moving to Reno aren’t coming from very far
- Reno is doing much better than the nation as a whole
- Rent increases in Reno are among the most rapid in the country.
- After enduring a long renovation before quarantine, Midtown businesses are seeing foot traffic return
- New neighborhood, new name, new (reduced) density
- Some are returning to work; many still have a way to go
- Nevada’s outdoor recreation industry has suffered during stay-at-home orders
- Construction resumes on Reno’s indoor sports facility
- Governor Sisolak foresees self-governed Blockchain cities