Forget flowers. April showers brought another record-breaking performance for the median home price in The Biggest Little City as Reno posted a new high — again.
The median sales price for an existing home in the city of Reno reached $630,000 for the first time in April, according to the Reno/Sparks Association of Realtors. The number is limited to stick-built single-family dwellings and does not include manufactured homes, condominiums or new houses.
Reno’s April median home sales price beat the previous record of $600,000, which was first set in January and then equaled in March, by 5%. It also represents a year-over-year increase of more than $100,000. The median price in Reno back in April of last year was $505,000.
The new high brought up the combined median home price for Reno-Sparks to record levels as well. The median sales price for an existing home in the overall Reno-Sparks market was $595,000, breaking the previous record of $575,000 set in the previous month of March.
The question now is whether Reno’s sharp uptick in median home price will be sustained for the rest of 2022. The Federal Reserve raised interest by half a percentage point last Wednesday, its biggest hike in more than two decades, to combat rampant inflation. Higher interest rates increase the cost of borrowing, which tends to reduce activity for things such as mortgages.
“It’s clear that the market is starting to return to more normal levels as the effects of higher mortgage interest rates begin to be felt,” said RSAR President Sarah Scattini. “We also are seeing a growing number of homes for sale, which provides greater choice for buyers.”
Although sales activity was down 3.2 percent from last year at 485 units, new listings increased by almost 11% to 734. The inventory of homes for sale also rose by just under 47%. Low supply has been cited as a key reason for the surge in home pricing in the last few years.
The time to contract also remains at just six days, way below the typical 20 days to 30 days seen in normal real estate markets in the past. Sellers also continue to have momentum in Reno-Sparks, with homes commanding more than 101% percent of the initial asking price.
Housing numbers for Reno and Sparks
Here is the latest housing data for the Reno-Sparks market.
RENO-SPARKS
- Median home price: $595,000, up 20.6% from last year and up 3.5% from the previous month.
- Unit sales: 485, down 17.1% from last year and down 3.2% from the previous month.
- Median condo price: $335,000, up 23.2% from last year.
RENO
- Median home price: $630,000, up 25.9% from last year and up 5% from the previous month.
- Unit sales: 329, down 22% from last year and down 4.6% from the previous month.
- Median condo price: $361,000, up 18% from last year.
SPARKS
- Median home price: $550,000, up 19.3% from last year and unchanged from the previous month.
- Unit sales: 156, down 4.3% from last year and flat from the previous month.
- Median condo price: $312,500 up 23% from last year.
Jason Hidalgo covers business and technology for the Reno Gazette Journal, and also reviews the latest video games. Follow him on Twitter @jasonhidalgo. Like this content? Support local journalism with an RGJ digital subscription.