Sparks, Nevada Real Estate Market Update February 28, 2023: New Construction Fuels Demand Amid Dwindling Inventory

Sparks Houses. There are a great deal of new developments currently being constructed in Sparks, and they’re really competitively priced. The median sales price for a single-family home in Sparks is hovering around $492,000 – down only .5% from this time last year. Even though interest rate increases have created pressure, the market has been leveling off quite a bit. The assumption would be that it’d be in a huge freefall for quite some time, but instead we’re seeing ebbs and flows. Resale homes are not selling in this range, so it’s new construction that is most affecting the data. Newly built homes are really moving. 
New Listings. For some time, Sparks, like the other markets, began to see a downward trend with new listings as interest rates increased. But recent data has shown an increase since the end of December 2022. New construction is generally not run through the regional MLS system, so all the charts and graphs show a steep decline in homes coming up for sale – down to only 16 new listings this week. That’s down 62% week over week since last year. The only reason it’s not even worse is because of all the new construction inventory.
Homes Under Contract. In past weeks, there has been a continual increase of buyers and sellers reaching agreements – generally speaking, that’s great. However, this increase comes as tough news for today’s buyers – as it leaves those who have been unable to find homes during this shortage with even fewer homes to see.  Homes are being absorbed, properties are going into contract and they’re sitting “pending.” We’ve nearly hit a sort of critical mass, as there aren’t enough homes hitting the market to replace the inventory that was so quickly captured over the past couple of weeks. Is that going to continue? It depends on listing behavior. New construction has been Sparks’ saving grace. So, if you’re a buyer interested in Sparks, you need to consider new construction. There are great opportunities out there right now with a great deal of inventory under the $500,000 range. And there are some that are ready to close in 30 days, 60 days, less than 90 days. 
Percentage of Listing Price. Recent data is showing that homes in Sparks are selling at 98.2% of asking price. That’s down just a bit from last year when we were seeing homes sell for 101%. Remember, when we’re talking about this kind of tightening with inventory, we aren’t referring to how offers are being written. Negotiations are happening, the interest has simply cooled on the way offers are written. Housing shortages put pressure on the marketplace, but while there are some good opportunities and little competition, sellers should still expect some negotiating. 
Weeks of Inventory. Sparks is down to only 7.6 weeks of inventory, which is concerning. Current inventory is getting absorbed too quickly and it’s not being replenished with new listings. To be in a balanced market, we need to be at 22+ weeks of inventory. We are on a trajectory to be in as tight of a market as we were at the peak in 2022, as this is the lowest inventory we’ve seen since before the interest rate hikes in June. The abundance of lingering snow and ice has compelled sellers to wait to list their homes, but it hasn’t deterred buyers – they’re out there looking. Again, a huge opportunity for those interested in selling – it’s a great time to sneak in there, jump ahead of the competition, and take advantage of the low inventory. 
Median Days on Market. We are seeing a downward trend with how long houses are sitting on the marketplace, which stands to reason as the buyer’s selection is running out. And that’s happening system wide. Currently Sparks is averaging 30 median days on market, which is not crazy in comparison to last year when homes were on the market for less than a week. 
Unsold Listings. We are seeing a continual decline of unsold listings, which tells us that sellers in Sparks are serious sellers. That’s great news for buyers and something they should keep in mind as they look for homes in this area. As mentioned in other market updates, savvy buyers should seriously consider looking at more expensive properties. Homes aren’t being withdrawn or expiring, and with serious sellers there’s a strong chance for bargaining and negotiating, especially with those who have had their property on the market for a while. Now is a great time for buyers to get a conversation going – taking advantage of an opportunity they otherwise wouldn’t have had if they had waited for sellers to reduce their price. 
In summary, new construction is leading the charge in Sparks, appealing to buyers with competitive prices. Folks who are planning to sell their homes have been reluctant to list amidst the heavy precipitation and plunging temperatures that have been moving through the region. Dwindling inventory is a cause for concern as homes are being absorbed at rapid speed, and not being replaced with new supply. Minimal competition and a multitude of enthusiastic buyers is creating a big opportunity for sellers, but only if they are willing to sell while there is still snow and ice on the ground.

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