Median home prices in Reno-Sparks near record high at mid-year

Median home prices in Reno-Sparks near record high at mid-year

The median home price for existing single-family homes in Reno and Sparks is once again remarkably close to all-time records.

Homebuyers hoping for a price cut will have to look harder as the average price of existing homes in Reno and Sparks continues to flirt with both cities’ all-time highs.

According to an analysis by the Reno Gazette Journal, Reno saw a median home sale price of $630,000 in June, down less than one percent from May but still within reach of the all-time record of $635,000 set in June 2022.

The figure is the third-highest median price ever recorded for Reno. Sierra Nevada Realtors’ real estate data is limited to existing single-family, mass-construction homes and does not include condos, manufactured homes and new construction.

Not to be outdone, neighboring Sparks recorded its second-highest median home price during the same period.

The median home sale price in June was $557,000, up 3% from the previous month. Only Sparks’ median price was higher at $570,000 in May 2022.

The median home prices for Reno and Sparks were enough to push the median home price in Washoe County up 2% to $600,000. That figure, which does not include Incline Village, is the second-highest median home price ever recorded for Reno-Sparks.

The record for Washoe County is $615,000 and was reached in May 2022.

What is the sales activity for existing homes in Reno-Sparks?

Median home prices in Reno-Sparks remain high despite declining sales.

In Reno-Sparks, 399 existing homes were sold in June, down 8% from a year ago. Retail sales are also a third lower than three years ago during the COVID-19 pandemic, when Reno-Sparks reported 622 existing homes sold.

Before the pandemic, an average of about 500 homes were sold per month in the area.

Active inventory, meanwhile, rose 13% to 849 homes listed for sale. However, new listings fell 4% to 541 units as the high-interest rate environment continues to put pressure on the real estate market.

The median number of days it takes to close an existing homeownership contract was 15 days, unchanged from the same period last year.

High interest rates remain a burden on the real estate market

High mortgage rates continue to negatively impact home sales, not just in Reno-Sparks, but across the country.

Although an increase in FHA and VA loan applications boosted buying activity, there was still a 0.2 percent decline in mortgage applications during the first week of July, according to the Mortgage Bankers Association.

“Mortgage applications remained essentially unchanged last week as mortgage rates remained around 7%,” said Joel Kan, MBA vice president and deputy chief economist.

The number of refinancing applications also fell for the fourth week in a row, Kan added.

“Even though there have been significant gains in home equity in recent years, there is not much incentive for most borrowers to refinance their debt at current interest rates,” Kan said.

Markets like Reno also face the double whammy of high real estate prices and high interest rates, making it difficult to buy a home.

Higher-than-expected inflation dashed hopes of a rate cut by the Federal Reserve in June, although a rate cut later this year is still considered a possibility. Even if a rate cut does occur this year, the National Association of Realtors predicts mortgage rates will remain above 6% in 2024 and 2025.

Lawrence Yun, chief economist at NAR, expects the increase in home prices to ease somewhat.

“The market is at an interesting point with rising inventories and lower demand,” Yun said.

“The development of supply and demand suggests that the increase in home prices will slow in the coming months.

Reno Sparks Housing Data June 2024

Here are the combined housing numbers for Reno-Sparks in June:

  • $600,000: The average price for an existing single-family home is 2% higher than in May and 4% higher than in June 2023.
  • 849: The active inventory of existing single-family homes in Reno-Sparks has increased 13% year over year.
  • 541: The number of new entries onto the market in June fell by 4% compared to the previous year.
  • 15 days: The median number of days it takes to close a contract on a home is unchanged from last year, but longer than the 10 days in May of this year.