What’s expected in the real estate market in 2018?
RENO, Nev. (KOLO) 2017 was a sellers’ market in northern Nevada with home prices consistently on the rise. According to the Reno/Sparks Association of REALTORS (RSAR), the year started with median home prices just over $300,000 and ended with the median price around $365,000. Doug McIntye, President of RSAR, says affordability will continue to be a problem in 2018.
“I think that we are probably going to reach $400,000 this year [for median home prices],” he said.
The problems start with basic supply and demand. Homes are being built, but not in large quantities. McIntyre says developers are building 20-25 homes at a time. That’s a significant decrease from the 50-75 homes developers were building before the Great Recession. The homes that are being built also start well above $300,000; much more than most first-time home buyers can afford.
The inventory for homes under $300,000 isn’t high. There’s about a month and a half of inventory, according to McIntyre. Six months is what the real estate market considers balanced. While sales and new listings of existing homes typically decline in the winter months, McIntyre says affordability is keeping people from selling.