Geeky Market Report for August 2024
Here is my Geeky Market Report for August 2024. During August, inventory increased, and interest rates came down quite a bit. As for values, home prices in Reno dipped while Sparks rose. See the charts below for more details.
Reno Median Home Price in August 2024
The median house price in Reno dropped to $650,000 in August 2024. This represents a decrease of 3% from last month, but an increase of 2.8% from August 2023.
Sparks Median Home Price in August 2024
In August, the median house price for Sparks slightly rose to $556,500. This was an increase of 0.3% from last month, and 8.5% from August 2023.
Inventory
During August 634 homes and condos were added to the market. By the end of the month, 459 homes sold, leaving 1,280 listings available for purchase. At this rate of sale, if no other homes are added to the market, there would be enough inventory to satisfy buyer demand for 2.8 months.
Interest Rates
By the end of August 2024, interest rates were averaging around 6.35%. This is down 43 basis points from the end of July, and down 83 basis points from the same period last year.*
Thoughts for the August 2024 Market
In August, home prices in both Reno and Sparks remained stable. Reno saw a slight dip in prices, while Sparks experienced a minor increase. Additionally, interest rates are finally on the decline. With rates hovering around 6.35%, almost a full percentage point lower than last year, buyers now have a bit more room in their monthly budgets. For example, if you had a $400,000 loan last year at 7.18%, your principal and interest (P&I) payment would have been around $2,710 per month. At a rate of 6.35%, that payment drops to $2,489, saving $221 per month or $2,652 per year. So, what does this all mean?
For Home Buyers Looking in the Reno/Sparks Market
If you’ve been hesitant about buying due to affordability concerns, now might be the time to reconsider. The reduction in interest rates may make homes that were previously out of reach more affordable.
For Sellers Looking to Sell Their Reno/Sparks Home
While lower interest rates are likely to increase buyer demand, the market is coming off the summer season, and inventory—though still low—has reached its highest level this year. This means buyers have more options to choose from. If you need to sell, ensure your property is competitively priced and in good condition to attract potential buyers.
Conclusion
Overall, buyer demand and low inventory are keeping the Reno/Sparks housing market steady.
