Reno Tahoe real estate offered steady if unspectacular results through the first half of 2023. Viewed through the lens of what was
anticipated to be a challenging year, year-to-date results have outperformed expectations.
Consistent with national trends, the total number of real estate transactions lagged mightily. 1779 residential sales are a full 25% below the first half of 2022 attributable to rising interest rates, scarce supply, and a disruptively intense winter. Nevertheless, pricing proved resilient, sliding just 2% below 2022’s full-year result to an average of $649,000. Factoring in the sluggish environment that followed the market’s peak in Q2, 2022, the average price has actually risen over the last 12 months by 2%.
Sellers have been rewarded for their patience as days on the market grew from 81 to 94. Buyers expecting to find greater price erosion, or any meaningful form of distress have given way to an acceptance of current market conditions and recalibration of carry costs based on prevailing interest rates.
Various market segments have generally moved in synch as the number of homes trading above $1,000,000 is equal in proportion to 2022 and outperforms any year before 2021 by a larger margin.
Areas in Reno’s southwest extending through Galena continue to receive the highest values. The $5 million threshold was achieved for the first time this year via a breathtaking golf course property in Montreaux.
The balance of 2023 appears promising with inventory perched at a steady 4 months of supply. While this tilts slightly in favor of sellers, it generally offers options for buyers to search for an optimal home amid conditions less frenzied than the last few years.
