What is going on in this crazy Market?

The Numbers

This should actually be entitled, “If you want to sell your house, do it this week.”
 
Our prices seem to be leveling off… FINALLY. Our Median sold price for single family homes in Reno/Sparks clocked in at $446,702. This is about a percent lower than it was in December but still 10 percent higher than last year. We had 370 new listings in Reno/Sparks last month which was better than December, but we still need more inventory as our absorption rate (how long it will take to sell all the listings at this rate if we get no new listings) is about half a month! Bottom line is that if we want the prices to continue to level off we need more listings.

How does it feel

The last couple weeks have been interesting. It feels like more people are starting to put their homes on the market. Running the numbers we have had 270 new listings this month already. Hopefully we can keep this up as the month winds down because demand has not felt higher… GET THIS, we had 270 new listings; however, we ONLY HAVE 170 HOMES AVAILABLE IN THE MLS AS I’M WRITING THIS! Homes are absolutely flying off the shelves. 170 homes… and it’s a Friday! Crazy.

Behind the scenes

It’s a battle out there for a buyer right now. Listing agents are putting homes on the market with some verbiage in the private comments that says something like, “Please limit showings to 30 minutes to allow everyone to see it. Offers will be presented Sunday night. Please submit highest and best.” We are starting to do this because we already know there will be multiple offers the first day on the market. Every offer I’ve submitted in the last 2 weeks has been in a pile of competitive offers. Each house under 600k is getting anywhere from 5 to 35 offers. Private showings are starting to feel more and more like open houses. There are usually 1 or 2 groups waiting outside while you are walking through waiting to get in.

I’m hoping that us realtors have to start arm wrestling to get our offers accepted because I’ve been working on those curls.

Where it’s going

Along with a few more listings and even more buyer demand over the last couple weeks, we have seen a slight spike in interest rates. Rates rising means buyers who are financing are losing a little buying power. This SHOULD help with the median price leveling off a little. If you are looking to sell, I would do it quickly before rates increase any higher and prices start to reflect that. If you are looking to buy, I would try to lock in a good interest rate RIGHT NOW!

 As always if you want to talk it out with me or a mortgage lender to see where you’re at, let me know!

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