by Rory Hickok
on Friday, December 11th, 2020 at 12:43pm.
In a normal real estate cycle, home sales usually peak in the summer and begin to slow down once school resumes in the fall and the weather begins to cool...right? Winter after all, is a time to slow things down and celebrate the Holiday Season. Like most things in 2020 however, many so-called 'norms', including real estate sales, are proving otherwise and show no significant signs of slowing down as we enter the winter season.
Despite the onset of colder weather and the continued pandemic, the combination of a thin housing inventory and historically low interest rates have made for a hot real estate market both here in northern Nevada and across the nation. For example, there were only 277 active homes for sale in Washoe County in the month of November. (/uploads/shared/documents/single fam homes 2016.pdf) Meanwhile, mortgage rates have hit at least 13 record lows in 2020 and it is expected that rates will stay relatively low into 2021.
Those two key drivers have led to significant increases in median home prices over the last year. According to the National Association of Realtors (NAR), the median sales price in the U.S. in October 2020 rose to $313,000, up from $271,000 the previous October. Closer to home, the Reno area market far outpaced the national average. According to the Northern Nevada Regional Multiple Listing Service, the median price of October home sales in Reno was $455,000. (/uploads/shared/documents/Median-Price.pdf)
With such a limited supply of properties for sale in this market, sellers are fielding multiple offers for their home and conversely, buyers are often faced with tough competition to find their home of choice. So what does all of this mean?
Primarily, it means the market will likely continue to stay heated during the winter months of 2020-21. If you're a buyer, be patient but make sure you're in strong position to make an offer by being pre-approved with your lender. Whether you're selling in this market or looking to buy, the Hughes Real Estate Group is ready to assist you with your individual real estate needs. Let us help you navigate this hot market this winter!