We've had yet another month of good news for buyers and sellers. Our median sales price has increased +2.9% month over month, showing strong buyer demand despite rising interest rates. In the short term, rising rates can slow buyer demand but they won't help much with our long-term supply issue. Developers aim to build roughly 3,000 houses in Washoe county this year when the projected need is 3,500+. On top of that, there are currently 51,000 renters in Washoe County that could qualify tomorrow to purchase a home, if they so choose.
The effects of seasonality have started to tiptoe in as we begin spring; seasonality is the phrase used to explain the way the market tends to follow regional seasons - here in Reno-Sparks for instance, things tend to slow down in winter and pick back up in spring and summer, whereas somewhere like Phoenix or Miami has a snow-bird market where they are busier in fall and winter rather than spring and summer.
New listings, active inventory, and closed sales have increased which is customary for this time of year. In specific, new listings increased by +24.4%, active inventory increased by +17.1% and closed sales increased by +29.8%. This is giving buyers more options to choose from, but as previously hinted we're not seeing the increased options for buyers hurt seller's profits.
Despite the growth in active and new inventory, our market is still moving rapidly as days to contract have remained the same; 5 days is the average for how long we see a property sit on the market before going under contract. My advice to buyers and sellers is to chat with a lender before shopping or listing a property, so you know the ins and outs of the whole financial aspect before getting into such a hot market.
Whether you're thinking of buying or selling, market conditions will be a factor in your transaction. If you're curious as to how this update can affect you, send me an email or fill out the contact form on my website.