4 Reasons Why the Reno Home Inventory Is So Low

    You might be thinking, why are there so few homes for sale in Reno? Maybe you’re looking for a home in Reno and you just can’t find the right property. Maybe you’re constantly being outbid in multiple offer situations, these are all things currently happening in the Reno market due to the historically low home inventory we currently have. There are so many factors that play into the reason behind this, so let’s get started.

    • People are simply staying in their homes longer than normal national averages.
      • The previous national average, people were living in their homes for about 6-7 years before the market crash in 2006-2007. The average time a family lives in their home is now roughly 10 years. The current average is just that, it’s an average. There are several homeowners that stay in their homes the rest of their lives or 15-20+ years, it all depends on their situation.

    • New home development slowed down severely after the market crashed.
      • During the peak of the market in 2006, the national average for new home’s developed in a market was roughly 1800 units a year. The national average for new home developer’s number of units produced was roughly 500-600 in 2014. That is roughly 1/3rd of what it was during the peak years of building. The population is increasing here in the Biggest Little City of Reno, but builders haven’t quite caught up yet. Not only has the production not been the same as in the past, but it takes a considerable amount of time to build a home. Not to mention, we’ve heard that several builders in town are short staffed, which certainly doesn’t help our situation here in Reno.
    • Many Investors Aren’t Ready to Sell!
      • There are so many rentals available, why don’t we have so few homes on the market? You are correct, we have many rentals available and that is part of reason why we don’t have enough homes to sell in Reno! A good majority of these home’s have been purchased by investors and are rental properties. These investors are likely holding onto their homes for the annual appreciation and rental income. With the knowledge of Tesla and other big companies making their way to Reno, many homeowners and investors believe that if they be patient, that they will be greatly rewarded in the coming years. But, of course, this is pure speculation.
    • Homeowners Are Not Ready to Sell
      • Regardless of low interest rates and low inventory, some homeowners still believe they can get more for their home if they simply wait. Also, currently about 3 in 4 homeowners in Washoe County have positive equity in their home. This is a huge step for several homeowners who have been underwater for so many years. I’m sure fear of starting over or having the same thing happen again is a big concern as well. With the recent jump in prices these last few years, although many sellers currently have positive equity in their home, they might not be ready to sell, both emotionally and financially. A lot of seller’s who are looking to move up or stay in the same area are afraid to list their home. They understand that their Reno home might sell quickly, but they also know that the downside is that they might not find the right house for them in this low inventory market here in Reno.

    These are just some of the reasons why the Reno inventory levels are historically low.  If you have any other suggestions or ideas on why we have such low inventory here in Reno, please share it with us. Well, now you might feel a little discouraged, but you shouldn’t be! This just means you need to keep an eye on the daily listings your agent is sending you and see the properties as soon as possible. Yes, this requires a little more time and effort, but it will give you the edge you need to be offer #1 for that perfect property. Take the time to narrow down exactly what type of property you are looking for so you can streamline the process of searching and be extra effective when trying to get an offer in quickest.

    The team here at Reno Home Sale works after hours and on the weekends, let us help you by sending you personal listing suggestions and we’ll find you the right home! Give us a call at 775-773-8525 or send us an email (msmithnv@gmail.com) to get you setup with a live updating stream of new home listings that matches your dream home features. Thank you and good luck!

    Trackback from your site.

    Leave a Reply