Northern Nevada housing market remains consistent
Rising interest rates and a shortage of inventory are causing potential home sellers in Reno-Sparks to stay put, leading to a decrease in sales inventory and higher prices for buyers.
Topics
Posted 8/23/2023, 2:53:05 PM
nnbw.com
Relevant topic timeline:
The inventory of existing homes has been declining since the peak of the housing bubble in July 2007, with technology playing a key role in speeding up the processes involved in selling a home and reducing the time it takes for a home to sit in inventory.
Sales of existing homes have declined due to the rise in mortgage rates, but the demand for new homes is increasing as buyers are hesitant to sell their current homes with low-interest mortgages.
Homebuilders are thriving due to a chronic shortage of existing housing inventory, leading to increased home prices and strong sales, according to KB Home CEO Jeffrey Mezger. The lack of inventory is also reflected in the significant drop in active home listings, with only Austin returning to pre-pandemic levels, while other markets have experienced substantial declines. Despite rising mortgage rates, the scarcity of existing inventory has prevented a steep national home price decline.
Home prices continued to rise in August due to low inventory and high mortgage rates, causing a drop in home sales, according to a report from the National Association of Realtors.