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Real estate trends often require several months to find definition in the Reno Tahoe market. Heavy winter snow and abundant storms only compound the malaise typical of Q1 months. The current state of local real estate offers a general sense of optimism that is in conflict with pedestrian data.

2023 began with a sluggish 207 residential transactions. This figure trails the same period in 2022 by 40%; a period that was the last gasps for pandemic-induced irrationality that gave way to greater sobriety in the second half of the year. This result can be equally ascribed to cautious consumers and persistently tight supply.

The smaller sample size delivered a tighter band of pricing. Average price in January was nearly identical to that of December while median price lagged by 5%. Despite relatively few closings, inventory dropped month over month by 10% falling below 1,000 listings for the first time in years.

National trends whereby meaningful distress is absent within existing homeowner who are secure in low mortgage rates resulting in sellers unmotivated to drop price are particularly prevalent in Reno where job security and overall contentment are high.

As a result, we are likely to continue seeing a pattern of modest of transaction activity and balanced supply at least through the first quarter of 2023. The typical revealing of new inventory in spring may be met with an improving interest rate environment that boosts transactions to more normal levels.

In the meantime, plentiful snow is delivering a winter paradise and hope for improved water resources for the balance of 2023.

 

Elsewhere around town:

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A 13-acre mixed use project is coming to Fernley

Reno Public Market opens to great acclaim