Nestled in the picturesque state of Nevada, the city of Reno is a lively community that offers a unique blend of natural beauty, outdoor recreation, and urban amenities. As the largest city in northern Nevada, Reno boasts a rich history, a bustling downtown area, and a growing real estate market.
Just a short drive away, the suburb of Sparks complements Reno's offerings with its own charm and appeal. In this blog post, we will evaluate the Reno and Sparks real estate market forecast for 2023, exploring key trends, market data, and expert insights to help prospective buyers and investors make informed decisions.
The current real estate scene in the Reno and Sparks area
Sparks, located adjacent to Reno, has become a hot market recently. Properties in Sparks are in high demand, with homes receiving closing offers in just 12 days on average. This indicates a sense of urgency among buyers, as they recognize the value and potential of the area. The median days to close in Sparks have dropped to 37 days, demonstrating that homes are selling rapidly. With a thriving economy and attractive amenities, Sparks has become a sought-after destination for homebuyers.
Reno's real estate market has also seen positive growth, albeit slightly slower. Median home values in Reno have increased by 1.695%, reflecting a steady upward trend. However, the median days to close in Reno have decreased by four to 40 days, indicating that homes are selling slower than before. While the market is still active and healthy, it may offer more breathing room for potential buyers compared to Sparks’s highly competitive market.
Reno's real estate market has also seen positive growth, albeit slightly slower. Median home values in Reno have increased by 1.695%, reflecting a steady upward trend. However, the median days to close in Reno have decreased by four to 40 days, indicating that homes are selling slower than before. While the market is still active and healthy, it may offer more breathing room for potential buyers compared to Sparks’s highly competitive market.
Median home price
Regarding median home prices, Reno currently sits at $507,333, representing a 13.4% increase from December 2021. Meanwhile, Sparks has a median home price of $535,000, reflecting a 10.9% increase from May 2021. Both cities have experienced significant appreciation in home values, providing homeowners with a favorable equity position.
Median sale-to-list ratio
When considering the sales-to-list ratio, both Reno and Sparks exhibit a ratio of one, indicating that homes generally sell at the listed price. This suggests a balanced market where sellers can expect fair offers and buyers can find properties within their budget.
Inventory
Inventory plays a crucial role in the real estate market, and both Reno and Sparks show interesting dynamics. Sparks currently has a significantly lower number of homes for sale than the previous year. However, the number of listings this month is higher than last year, suggesting an increase in housing supply. In Reno, there are currently 704 properties on the market, offering several options for buyers.
The average property tax rate
The average property tax rate in Reno is $3.66 per $100. Buyers and investors should consider these tax rates when evaluating the affordability of properties in each city.
Cost of living
The cost of living in the Reno and Sparks area is generally higher than other areas in the country. Reno is considered expensive, with the cost of living being 5% higher than the national average.
Market trends in Washoe County
The housing market in Washoe County, which encompasses Reno and Sparks, significantly influences the local real estate scene. Homeowners in Washoe County pay an average of $2,014 in property taxes annually, with a base property tax rate of $2.70 per $100. These figures highlight the importance of understanding the county-level market trends and policies for buyers and sellers in Reno and Sparks. Recent data shows that the median sale price in June is $550,000 for single-family homes.
Considering the impact of the county's housing market on Reno and Sparks, it's essential to recognize the correlation between market conditions and the performance of these cities' real estate sectors. Individuals hoping to purchase or sell real estate should consult with professionals for expert advice and valuable insights into the local market.
Considering the impact of the county's housing market on Reno and Sparks, it's essential to recognize the correlation between market conditions and the performance of these cities' real estate sectors. Individuals hoping to purchase or sell real estate should consult with professionals for expert advice and valuable insights into the local market.
Reno and Sparks real estate market forecast for 2023: What to expect
When looking ahead to the future of the Reno and Sparks housing market, it is essential to consider various factors and expert insights. Overall, both real estate markets are thriving, offering buyers, sellers, and investors the potential to reach their real estate aspirations.
Key indicators that once dragged the market down, such as unemployment and foreclosures, show signs of decreasing. And with home prices and equity in Reno growing at impressive rates and showing no signs of slowing down, this positive real estate environment may provide favorable advantages for potential investors and sellers.
Key indicators that once dragged the market down, such as unemployment and foreclosures, show signs of decreasing. And with home prices and equity in Reno growing at impressive rates and showing no signs of slowing down, this positive real estate environment may provide favorable advantages for potential investors and sellers.
High interest rates
The country was greatly affected by the COVID-19 pandemic, and Reno and Sparks’s real estate markets were no different. In 2020, the country saw historically low-interest rates to help fight against the uncertainty of stay-at-home orders. During this time, many housing markets, including Reno and Sparks, experienced a hot seller’s market, with many buyers entering the market eager to take advantage of the lower rates. However, the housing supply couldn’t keep up with buyer demand.
Since then, the United States has begun to feel the effects of the pandemic. The Federal Reserve has conducted a series of interest rate hikes to combat rampant inflation and stabilize the economy. This has greatly affected national and local housing markets, as many buyers hesitate to finance a loan with high rates.
That said, buyers shouldn’t wait for interest rates to drop to enter the market. While experts forecast interest rate hikes may balance out before the end of 2023, this isn’t set in stone. Housing supply is still low, and motivated buyers should jump on a home they love before it’s gone. While interest rates may be higher now compared to 2020, buyers purchasing a house now always have the option of refinancing at a lower rate in the future. With home appreciation values skyrocketing, now is the perfect time to gain equity.
Since then, the United States has begun to feel the effects of the pandemic. The Federal Reserve has conducted a series of interest rate hikes to combat rampant inflation and stabilize the economy. This has greatly affected national and local housing markets, as many buyers hesitate to finance a loan with high rates.
That said, buyers shouldn’t wait for interest rates to drop to enter the market. While experts forecast interest rate hikes may balance out before the end of 2023, this isn’t set in stone. Housing supply is still low, and motivated buyers should jump on a home they love before it’s gone. While interest rates may be higher now compared to 2020, buyers purchasing a house now always have the option of refinancing at a lower rate in the future. With home appreciation values skyrocketing, now is the perfect time to gain equity.
Ready to enter the Reno & Sparks market?
Whether you want to purchase luxury real estate in Reno or are looking to sell your Sparks home, contact real estate specialist Patty DuHamel today for expert guidance. Patty specializes in the Reno area and its exclusive communities, including Sparks. With over 30 years as a top-rated realtor, Patty has the knowledge, expertise, and skill to help her clients find the home of their dreams or sell for top dollar. To learn more, contact Patty today.