August home sales slowed a bit. A trend?
According to the Reno/Sparks Association of REALTORS, houses sold in the month of August have dropped 23% versus a year ago. And while the median sale price of $372,551 is greater than last August, it only represents a 6% increase vs. the double-digit hikes we saw in the spring and summer. This slowing in the price increases could be for several reasons:
- Sales and, therefore, prices tend to trend down as the winter approaches;
- Buyers could be taking a breather and choosing to rent vs. buy until home prices come down; and
- There has been a steady number of price reductions for those homes currently on the market.
Reno/Sparks continues to be in a Seller’s Market with just a 2.4 months supply of inventory. Monthly supply of inventory is the time it would take to sell the current number of homes on the market at the current rate of sales. (The National Association of Realtors states that a “normal” housing market is one with a 4 - 6 month supply of inventory.)
Some positive notes for Sellers is that properties are remaining on the market for 76 days down 13% from August 2017. Sellers are also receiving an average of 99% of their home’s list price, which is up about 1% from last year.
It will be important to note if mortgage interest rates (currently averaging 4.5%) will increase after the mid-term elections.