While reports of a slowing real estate market are making headlines nationally, the Reno Tahoe region is continuing ahead at a steady, consistent pace. The first half of 2022 saw results within 10% of the same period a year ago while posting 19% median appreciation. Even factoring in the second half of 2021, typically the busier than the first six months by 30% or more, pricing has leapt by 10%.
When viewed in 6-month increments, the local market has been very steady with predictable flows deals and consistent appreciation.
| H1 2021 | H2 2021 | H1 2022 | ||
| Total Transactions | 3662 | 4126 | 3296 | |
| Median Price | $457,000 | $499,910 | $545,000 | |
| % Change | 9% | 9% | ||
| Average Price | $552,941 | $592,727 | $644,000 | |
| % Change | 7% | 9% | ||
| Days on Market | 43 | 46 | 42 | |
| % of Asking Price | 100% | 100% | 100% |
Inventory has crept up to nearly 4 months’ supply; a meaningful spike from recent extreme lows but typical of the season. While rising interest rates may mitigate any momentum for potential purchasers that have been non-triumphant in past attempts, there could be a sweet spot where ample options meet affordability before a meaningful change in market conditions.
While choppy economic conditions seem inevitable, the fundamentals for Reno Tahoe real estate seem generally stable, particularly in comparison to the 2008 recession. Unlike those years, leverage has been measured leading to modest mortgage distress. Regional job growth remains strong fueling demand for primary housing at all levels from entry to executive.
Some pricing regression may be inevitable however utility of housing purchased in recent years appears sufficiently high such that a major inversion of supply and demand remains unlikely.
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