Median Home Price in Reno Hits All-Time High
Median home prices have hit the $400,000 mark in Reno for the first time ever.
Median home prices have hit the $400,000 mark in Reno for the first time ever. That's up $70,000 from this time a year ago.
If you're a homeowner who's looking to leave the area, now would be a great time to sell, but if you're looking to buy a house in Reno or Sparks, it can be a bit of a challenge.
Realtor partners John Oliver and Katrina Karlsson are at the front lines of Reno’s current rise in housing cost. Much like other realtors in the area, the duo are currently seeing a large amount of clients who'd like to buy a home, but there's one problem.
“Below $400,000 there's only about a month of inventory on the market, which makes it very difficult to find a home because 75 percent of all the buyers are below $400,000,” said Oliver.
The lack of inventory is a classic case of supply versus demand and it's forcing buyers to take another route. Some people are settling on location.
"How far do I have to drive to get a house that I can afford, as an example, Fernley is still $100,000 less expensive for a home,” said John Graham, former president with the Reno/Sparks Association of REALTORS.
Others are settling on the size and shape of a home.
"They'll end up getting a condominium or they'll get some multi-housing that they hadn't thought of before and save their money for another day,” said Oliver.
But when will that day come? If more houses aren't built quickly, it could be later rather than sooner.
“I don't see easing of inventory shortage for a couple of years,” said Graham. "There are a lot of nice projects being built that'll help a little bit as they come online."
But until then, prices will continue to surge. Which begs the question, are signs pointing to a housing bubble? These experts say it's not a concern, as long as our job market stays strong.
"Employment is up, wages are increasing,” said Graham. “Our unemployment rate was way high at the back end of the bubble days and now we're under 5 percent which most people consider to be full employment.”
The Reno-Sparks Association of Realtors says a rise in cost of 2 ½ to 5 percent would be comfortable for the market. From last year to now, the median home price is up four times that, rising 20 percent.