Real estate closings in the Reno Tahoe area experienced a small bounce in October. Despite prevailing sentiment, price popped upward slightly as both median and average price picked up 3% and 1% respectively. While transaction volume has slowed meaningfully from the hysteria of the last several years, recent data indicates that pricing remains stable.
Escalating interest rates threaten to tamp down velocity and cap appreciation however a notable absence of distress and still limited inventory indicate relative stability for pricing.
In October, 312 residential transactions closed in the greater Reno area. This compares to 429 in September and an overwhelming 508 in the same period a year ago. A slight tapering is typical for this time of year however the 2021 load is more indicative of an overheated period than an underwhelming performance during the current period.
Further, 10% of all transactions in October closed above $1,000,000. Year-to-date, 12% of all residential sales have cross this threshold, more than 2021 (9%) or 2020 (6%).
Given the vast geographic span of the Reno Tahoe area, assigning market wide data trends to specific homes may send false signals. However, the chart below demonstrates that until a market reaches 6 months of inventory, prices should not falter dramatically.
Current inventory stands at just over 4 months of supply.
Given the exceptionally high usage of most homes, primary and secondary (or a hybrid thereof), as well as the distinct absence of distress for reasons to do with mortgage carry or equity, it is unlikely that the local market experiences in meaningful flood of inventory before Spring, 2023.
Elsewhere around Northern Nevada:
The evolution of the Nevada workforce
UNLV’s business indicators for November
Californians are still coming …
… and Reno is still building
Apartment vacancies show the first increase in quite a while
Mortgage slowdown results in big layoffs at Clear Capital
