In October 2024, Reno’s real estate market exhibited notable strength with 1,290 active listings and 332 homes sold, generating a volume of $252.9 million and an average price of $761,648. This represents a significant increase from October 2023, where similar metrics showed 1,097 active listings, 298 homes sold, and an average price of $705,950, leading to a volume of $210.4 million.
Despite these positive trends in property values, sales activity has slowed compared to 2023, reflecting concerns over various economic factors. High interest rates have been a substantial barrier, with many potential buyers facing increased monthly mortgage payments. This has prompted some to defer home purchases as they wait for more favorable financing conditions. Additionally, uncertainty around the upcoming presidential election creates a climate of apprehension for both buyers and sellers, often leading to hesitation in making significant financial commitments such as purchasing real estate.
The slightly lackluster sales volume has been remarkably steady throughout 2024 and particularly in the last six months as the variance in total sales has not exceeded 10% in any given month. As well, the overall share of sales greater than $1,000,000 has grown slightly from 13% to 14% of all residential transactions. Sales greater than $2,000,000 are exactly tracking last year at 3% of all transactions.
Looking ahead to the first quarter of 2025, several factors could influence the real estate market in Reno. It is anticipated that as the election draws closer, there may be clarity concerning future governance that could ease buyer concerns, potentially invigorating the market. Additionally, should interest rates begin to stabilize or decrease, more buyers could re-enter the market, stimulating sales activity.
The forecast remains cautiously optimistic. If interest rates can shift downwards and political uncertainties begin to resolve, we could witness an uptick in sales activity, improving buyer confidence and reducing the current paralysis in the market. Overall, while challenges persist, the underlying demand for housing in Reno may prevail as conditions evolve, setting the stage for a more active market in 2025.
