Reno Housing Market Trends and Forecast for 2024 – Norada Real Estate Investments

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As we enter 2024, the Reno-Sparks housing market reveals a complex narrative of fluctuating sales and prices amidst varying inventory levels. The year-over-year increase in sales, despite a decline in median prices and inventory, underscores the challenges and opportunities in the market. The substantial rise in pending sales indicates a resilient demand.

Reno/Sparks Housing Market Trends

How is the Reno Housing Market Doing Today?

The following residential housing market data covers the cities of Reno, Nevada, and Sparks, Nevada provided by the Northern Nevada Regional MLS. In January 2024, the Reno-Sparks real estate market witnessed notable shifts in key indicators. The median home price experienced a decline to $565,000, reflecting a 5.3% decrease from the previous month but showing a 4.9% increase year-over-year.


Buy/sell, rent/lease residential &
commercials real estate properties.

Similarly, the median sold price per square foot (PPSF) dropped to $292.49/sq.ft., indicating a 3.1% decrease from December but a 1.2% increase compared to the same period last year.

The number of homes sold in January 2024 decreased by 9.3% from December, totaling 253 single-family residences (SFRs). However, the market displayed resilience on a year-over-year basis, with January sales up 5.9% compared to the same period last year.

Reno Inventory Dynamics

The available inventory of homes for purchase stands at 516 units, representing a 9.9% decrease from December and a significant 20.0% drop from the previous year. Homeowners seem hesitant to sell, possibly influenced by the current 3% mortgage rate, fearing the prospect of buying a new home at a higher 7% mortgage rate.

Despite the low inventory, the number of pending sales surged by 29.4% over the previous month, reaching 455, although it marks a 4.3% decrease year-over-year.

January’s months’ supply of inventory (MSI) came in at 2.0 months, indicating a seller’s market. This figure is calculated by dividing the available inventory by the number of homes sold last month. A balanced market typically falls between four and six months of supply. The median days on market (DOM) for January was 86 days, reflecting an increase of 22 days from December and no change compared to January 2022.

The condo/townhome segment experienced a sharp decline in median sales price, falling to $345,000, a 10.4% decrease from December but a 7.0% increase year-over-year.

Reno Housing Market Forecast 2024

According to Zillow, the average home value in Reno stands at $522,774, reflecting a modest increase of 0.8% over the past year. Homes in the area typically go pending within 32 days, indicating a brisk and competitive market as of January 31, 2024.

Key Housing Metrics:

  • For Sale Inventory (January 31, 2024): With 810 properties available for purchase, the market offers a diverse range of options.
  • New Listings (January 31, 2024): The recent addition of 208 new listings contributes to the market’s vitality and growth.
  • Median Sale to List Ratio (December 31, 2023): The ratio of 0.988 indicates a strong alignment between listing and sale prices.
  • Median Sale Price (December 31, 2023): At $534,583, homes in Reno command a respectable market value.
  • Median List Price (January 31, 2024): The current median list price is $579,667, providing valuable insights for both buyers and sellers.
  • Percent of Sales Over/Under List Price (December 31, 2023): A notable 16.1% of sales exceed the list price, while 59.9% are under, reflecting a diverse market landscape.

Reno MSA Housing Market Forecast:

In projecting the future trajectory of the housing market, the Reno Metropolitan Statistical Area (MSA) is a key focal point. According to the forecast data, as of January 31, 2024, the MSA is expected to experience a growth rate of 0.2% by February 29, 2024, followed by a more significant increase of 1.2% by April 30, 2024.

Looking further ahead, the forecast anticipates a cumulative growth of 3.7% by January 31, 2025. The term Metropolitan Statistical Area (MSA) refers to a geographical region with a substantial population center and economic ties. In the case of Reno, Nevada, the MSA encompasses various counties, contributing to the overall vibrancy of the housing market.

The housing market in the Reno MSA is considerable in size, reflecting the region’s growth and attractiveness. As the forecast indicates positive trends, stakeholders in the real estate sector can leverage this information for strategic decision-making.

Is Reno a Buyer’s or Seller’s Housing Market?

Assessing whether the current Reno housing market favors buyers or sellers is crucial for making informed real estate decisions. With a median list price of $579,667 as of January 31, 2024, the market leans towards a seller’s advantage. However, factors such as the percent of sales over list price (16.1%) indicate opportunities for both buyers and sellers, making it essential to navigate with a nuanced approach.

Are Home Prices Dropping in Reno?

The data reveals a modest increase in the average home value, with a rise of 0.8% over the past year. While this indicates overall stability, the market does not currently show signs of home prices dropping. Instead, the incremental growth suggests resilience and potential for long-term stability in Reno’s real estate sector.

Will the Reno Housing Market Crash?

As of now, there is no indication of an impending housing market crash in Reno. The steady growth in home values, coupled with a healthy market performance, suggests a resilient and stable real estate landscape. It’s important to note that market conditions can change, and regular monitoring of key indicators is advisable for a comprehensive understanding of the evolving scenario.

Is Now a Good Time to Buy a House in Reno?

Considering the current market dynamics, now could be a favorable time for prospective buyers. The median list price of $579,667 and a reasonable median sale price of $534,583 present opportunities for those looking to make a real estate investment. However, individual circumstances and preferences should always be considered, and consulting with real estate professionals can provide personalized insights for potential homebuyers.

Reno Housing Market Forecast 2024
Source: Zillow

Reno Real Estate Investment Overview

Reno, Nevada is a popular destination for real estate investors due to its strong economy, growing population, and affordable housing market. The city offers a range of recreational opportunities and attractions, including nearby Lake Tahoe and the Sierra Nevada mountains, as well as a thriving business environment with a diverse range of industries, from technology to healthcare and logistics.

Investing in the Reno real estate market offers a dynamic landscape with both opportunities and considerations. While recent data indicates a 2.0% decrease in average home values over the past year, it’s important to recognize that real estate markets often exhibit short-term fluctuations.

In the context of Reno’s housing market, a median home value may not be considered affordable for everyone. However, compared to other popular real estate markets in the United States, such as San Francisco, New York City, or Los Angeles, Reno’s housing market may be relatively more affordable.  It is important to note that affordability is also influenced by factors such as local median income levels, employment opportunities, and the overall cost of living. In addition, properties tend to go pending within an average of 49 days, making it a fast-moving market.

Investors have many reasons to consider Reno real estate, including the potential for rental income from the city’s growing population, the chance to take advantage of a strong economy with numerous job opportunities, and the possibility of diversifying their investment portfolios with a range of property types, from single-family homes to multi-unit apartment buildings. The city’s thriving tourism industry, with numerous entertainment options, including casinos and music festivals, also presents opportunities for investors to benefit from short-term rental income.

Here are the top reasons to consider investing in Reno real estate:

Strong Economic Growth:

Reno’s economy has seen a significant boost in recent years, with job growth outpacing the national average. The city’s diverse economy includes industries such as healthcare, technology, logistics, and manufacturing, which have all seen growth in recent years. This economic growth has resulted in increased demand for housing, making it an attractive market for real estate investors. Moreover, the city is a hub for tech startups and small businesses, which are continually looking to expand and hire.

Affordable Housing Market:

Despite the average home value in Reno being over $500,000, it is still relatively affordable compared to other western cities such as San Francisco and Seattle. This affordability has made Reno an attractive destination for people looking to relocate from more expensive areas, increasing demand for housing and presenting opportunities for real estate investors. Additionally, the city has a wide range of housing options, from single-family homes to condos and townhouses, allowing investors to diversify their portfolios.

Favorable Tax Environment:

Nevada has a business-friendly tax environment, with no state income tax and relatively low property taxes. This favorable tax environment can be beneficial for real estate investors, as it can increase potential returns on investment. Moreover, the state’s tax structure is favorable to businesses, making it an attractive location for corporations, which can result in increased demand for housing.

Tourist Destination:

Reno is a popular tourist destination, attracting visitors to its many attractions, such as Lake Tahoe and the Reno Air Races. This tourism industry can provide a stable source of income for real estate investors through short-term rentals and vacation homes. Furthermore, the city hosts several events and festivals throughout the year, such as the Reno Rodeo, Hot August Nights, and the Great Reno Balloon Race, which can boost the demand for short-term rentals.

Growing Rental Market:

As home prices continue to rise, more people are turning to rent as a more affordable housing option. This has resulted in a growing rental market in Reno, making it an attractive market for real estate investors looking to generate passive income. The city’s growing economy and population growth also contribute to this trend, providing a stable demand for rental properties.

Proximity to Major Cities:

Reno’s proximity to major cities such as San Francisco, Sacramento, and Las Vegas makes it an attractive location for businesses and residents alike. This proximity can drive economic growth and increase demand for housing, making it an attractive market for real estate investors. Furthermore, the city’s location near Lake Tahoe and the Sierra Nevada mountains makes it an ideal destination for outdoor enthusiasts, contributing to its overall appeal.

Growing Population:

Reno’s population has been steadily growing in recent years, with an expected growth rate of 2.7% by 2025. This population growth can increase demand for housing, presenting opportunities for real estate investors to capitalize on this trend. Additionally, the city’s population growth is driven by both domestic and international migration, providing a diverse pool of potential renters and buyers for real estate investors.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Reno.

Not just limited to Reno or Nevada but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Las Vegas is another hot real estate market in the state of Nevada. Las Vegas is a hot spot for real estate investment due to its strong economy, growing population, low taxes, and tourism industry. The city’s affordable housing market and proximity to major cities like Los Angeles also make it an attractive destination for investors. Additionally, Las Vegas is home to a variety of entertainment options, including casinos, music festivals, and sporting events, which can provide a stable source of income for real estate investors through short-term rentals and vacation homes.

On the east of Nevada lies the state of Utah, where you can consider investing in Salt Lake City. Salt Lake City is emerging as a hot spot for real estate investment due to its growing population, strong job market, and relatively affordable housing market. The city’s diverse economy, which includes industries such as healthcare, education, and technology, has resulted in job growth outpacing the national average.

This economic growth, combined with the city’s stunning natural beauty and recreational opportunities, has attracted people from across the country, driving demand for housing. Salt Lake City’s favorable tax environment, with no state income tax and relatively low property taxes, also make it an attractive market for real estate investors looking to maximize their returns. Additionally, the city’s growing rental market and proximity to major cities such as Denver and Las Vegas provide further opportunities for investors.

Let us know which real estate markets in the United States you consider best for real estate investing!


References

  • https://snr.realtor/market-reports/
  • https://www.zillow.com/reno-nv/home-values
  • https://realestate.usnews.com/places/nevada/reno
  • https://www.realtor.com/realestateandhomes-search/Reno_NV/overviww

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