The Reno-Tahoe real estate market spent much of 2022 vacillating between conditions that could be defined as neither good nor bad. When viewed on a 12-month basis, the data strongly favors the good. When viewed as momentum heading into 2023, the verdict remains to be determined.
At the highest level, 4,386 residential properties were traded in 2022. While this represents the fewest sales in over a decade, the reasons waver between reduced demand and greatly diminished quality supply. The overall resilience of prices points to supply being the greater culprit as average and median prices were in agreement as to gains of 12% – 14% respectively.
The average price in January is nearly identically matched by the pricing in December bracketing a bell-shaped journey that saw values surge above $700,000 before settling back in the mid $600,000’s.
At the outset of 2023, market dynamics have undeniably changed from this time a year ago. Interest rates have spiked challenging affordability; a dynamic that typically creates downward pressure on values. While days on market have increased by over a week from 2021, the overall supply of available listings has remained exceptionally low at just 3 months’ inventory. Until supply hangs at 6 months or longer, values are typically steady.
Luxury sales continued to grow in 2022 as transactions greater than $1 million comprised 12% of all trades; the highest ever for Reno-Tahoe. 523 transactions above this premium threshold is just 8% fewer than the total in 2021 despite the overall market total dipping by 25%.
While the headwinds are plentiful heading into 2023, until supply climbs by double or more, pricing is likely to remain steady. The local market seems to have priced in a tougher 2023 economic year, including higher interest rates and compressed equities, so any signs of economic relief could boost local activity. Nevertheless, the fundamental value in job growth in Reno will continue to deliver an enhanced lifestyle benefit that transcends economic values this year and for years to come.
The Reno – Tahoe Year in Review:
EDAWN helped generate over 2,300 high-paying jobs in 2022
Job growth has slowed but continues on a positive trajectory
KOLO’s Top 8 Stories of the Year
Rents have come down but affordability remains a challenge
Mayor for life?
Is Nevada ready for a green economy?
Tale of two diversifying cities
Examining the local economy after two years of pandemic
Nevada is #1 in the country for economic momentum
Early season snowfall is a boon for winter resort business
Best wishes for a happy and prosperous 2023.
