Sparks, Nevada Housing Market Update February 21, 2023
Posted by Paul Dunham on Tuesday, February 21, 2023 at 4:39 PM By Paul Dunham / February 21, 2023 Comment
Sparks Houses. The current median sales price for a single-family home in Sparks is $509,995. That is down about 8.4% from this same week in 2022. In monitoring the data week over week, that percentage is expected to continue to spread as we overlap last year’s spike. Will we see the percentage move into the 20% range? Probably. But Sparks is behaving in a different pattern than Reno and it’s been interesting to see the differences between the two cities, as people commonly blend them together. Why is it higher than Reno this week? Recent data is showing that there is more new inventory coming up in the Sparks market, a lot more big builder development. Anytime we come across new construction buyers, there is noticeably more of a selection in Sparks than in Reno, and at a lower price point. Some new developments in Reno are selling homes with a base price of $800,000-900,000, sometimes reaching the seven-figure range. In Sparks, you can buy brand new homes in the high fours/low fives price range. Occasionally, these homes bump up the median sales price a little bit more as the sales of the new homes are being blended with the resale homes.
New Listings. The number of new listings in Sparks is behaving a bit different from that of Reno as well. The past few months Reno has flatlined for new inventory whereas Sparks has seen an increase of inventory since the beginning of the new year. That’s great news for Sparks buyers who are eager to get their eyes on fresh, new listings.
Homes Under Contract. Week over week, “pendings” are down between 15-16% – due largely in part to the strange marketplace we experienced in 2022. However, very much in line with the pattern we are seeing in Reno, there are many folks reaching agreements in their negotiations. Sellers are getting the buyers they want and buyers are getting the homes they want.
Percentage of Sales Price. Sellers in Sparks are averaging sales at 97.9% of asking price. That gives both buyers and sellers some expectation of where agreements have been reached, within that range. But also know that includes new build inventory. New builds are accepting offers, and not just at sticker price as people often believe – one can negotiate on new builds. Interested buyers should not be afraid to present offers just as they would in the resale market. Builders are willing to negotiate, too.
Weeks of Inventory. Due to the increase in new listings, Sparks is not quite as tight as the Reno marketplace and is averaging around 16.4 weeks of inventory.
Median Days on Market. Right now, Sparks is seeing a median of 34 days on market. Prior to January, Sparks and Reno were both hovering around 60 days and then experienced a sharp incline in days on market. That is likely because, over time, sellers have gotten more information on the current marketplace and are able to list at a better starting place. With limited data for comparison, it’s difficult for a seller and their listing agent to know the correct marketing price of a home – there’s simply not enough information out that shows what today’s buyers are paying. As more homes hit the market, we can reference the records that give a better idea of what’s been happening. That allows sellers to find that top dollar number buyers are willing to pay, faster – thus allowing them to not have to be on the market so long. 34 days on market shows houses are selling in a timely fashion. Anywhere between 30 to 60 days is a pretty fair, reasonable marketplace. Once that number reaches into the 90s range, typically it is not uncommon to see an increase in inventory. We have little increase in inventory, and those homes are being quickly absorbed.
Unsold Listings. Very few homes in the Sparks area are unsuccessfully selling. The number is on a continual decline as the majority of sellers are serious sellers, not market testers. Our best piece of advice? Prospective buyers who don’t care for the current inventory they’ve been seeing, consider bumping up that price just a little bit, broaden your search. Talk to your realtor, look at the price history of a more expensive property, if it’s been sitting for a moment, that seller may be getting ready to do a price reduction. Remember, these are serious sellers – they want to sell and they are willing to negotiate. Take advantage of that and get your offer out to them. Being aware of days on market is crucial for today’s buyers and their purchasing strategy. As for prospective sellers, know this: buyers don’t care if there is snow in the front yard. If the roads and walkways are dry, they are guaranteed to be out there looking at homes. With low inventory, there is not a lot of competition out there, so right now may be the perfect time to get your property listed.
In summary, contrary to what the Reno market has been seeing recently, there is more new inventory in Sparks with new listings on the incline since the beginning of the year. The percentage of sales price is still averaging around 97.9% and homes are selling in a timely fashion with 34 median days on market. In this low inventory market, buyers should contemplate doing some research on price histories and consider bumping up their price range to broaden their scope. Rather than waiting for the weather to warm up, the sheer number of eager buyers and present lack of competition with other properties should encourage prospective sellers to list their homes sooner than later. And regardless of which side of the sale one is on, both buyers and sellers should expect some negotiation as they move forward.
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