Reno’s median home price just hit a record high

The city of Reno reached new heights in July as it set a record for the median home price for an existing home.

Reno posted a record median home sale price of $672,500 in July, according to Sierra Nevada Realtors. The data is limited to existing, stick-built, single-family homes and does not include condominiums, mobile homes, apartments and new housing.

The latest median home price breaks the previous record of $635,000 that was set in June 2022. At the time, home prices surged from increased demand as more people started to work from home during the COVID-19 pandemic.

A spike in mortgage rates caused the median home price in the city of Reno to fall as low as $510,000 in January last year as the Federal Reserve raised interest rates multiple times in response to high inflation. Reno’s median home price would bounce around in the coming months before nearly breaking the record in May and June this year.

By contrast, the median home price for an existing home in Sparks remained relatively flat. Sparks posed a median home sale price of $555,000 in June, down by just $2,000 from the previous month.

One potential bright spot for buyers is inventory, which was up significantly from a year ago. Insufficient supply has been blamed for fueling a housing affordability crisis, with wages failing to keep pace with surging home prices.

“July’s housing market results reflect a mixed trend across our regions, but indicate a growing supply amidst price fluctuations,” said SNR President Robert Bartshe in a statement.

Reno-Sparks combined median falls just short of new record

Reno-Sparks saw a combined median home sale price of $610,000 in July — the second highest recorded for the metro area.

The July median just fell short of breaking the record set in May 2022 by $5,000.

Unit sales remain down from the previous year. Reno-Sparks sold 419 homes in total in July, a 2.3% decrease from the same month last year.

Supply rose, however, as more buyers became comfortable with listing their homes on the market.

Active inventory increased by nearly 20% to 957 units. New listings, meanwhile, also rose to 534 units, an improvement of just under 5%.

The increase occurred alongside a decrease in mortgage rates.

Mortgage rates decreased across the board for the week ending Aug. 2, according to the Mortgage Bankers Association.

The 30-year-fixed rate fell to 6.55% — the lowest seen since May last year.

The decrease was in response to “doveish communication from the Federal Reserve and a weak jobs report,” said Joel Kan, MBA vice president and deputy chief economist. The Federal Reserve is expected to make a rate cut in September.

“As a result of lower rates, refinance applications increased across all loan types, particularly for VA loans, and were almost 60 percent higher than it was at this time last year and were at its highest level in two years,” Kan said.

This article originally appeared on Reno Gazette Journal: Reno’s median home price just hit a record high