Housing prices in Reno area hit all-time high again

Housing prices in Reno area hit all-time high again

Rising housing prices have set a record in the Reno-Sparks area for the fourth time this year.

August 19, 2018 – 11:01 pm

The famous Reno arch is seen on Virginia Street in downtown Reno. (AP Photo/Scott Sonner)

RENO — Rising housing prices have set a record in the Reno-Sparks area for the fourth time this year.

The Reno-Gazette Journal reports the combined median price for an existing single-family home in the cities of Reno and Sparks reached $389,000 in June.

That’s the highest level ever recorded by the Reno/Sparks Association of Realtors.

In February, the Reno-Sparks area broke the 12-year-old record of $365,000 set in January 2006. Since then, it has set new highs in March, June and July.

The new median price record is still lower when the old boom record is adjusted for inflation — $365,000 in 2006 is worth $463,800 today, according to the U.S. Bureau of Labor Statistics.

Nevertheless, the string of record highs illustrates the challenges of a market faced with tight housing supply. Although the Reno-Sparks median price is up by 10 percent from the same period last year, the total unit sales of 555 in July is down 21 percent year-over-year.

“When you factor in pricing with the seasonal trend, I would anticipate that unit sales numbers may not reach 2017 levels,” said Doug McIntyre, president of the Reno/Sparks Association of Realtors.

The higher pricing was driven by Sparks, which posted a new median price record of $364,500 in July. Reno’s median price was $400,000, down slightly from the record set last month of $404,500.

Fernley reported a median price of $252,500, which represents a 12 percent increase from July of last year.

Reno-Sparks’ housing crunch worsened last year after near-zero construction during the recession led to a limited supply of homes as the economy started to see robust growth in recent years. Near-zero vacancies, meanwhile, have led to rising rents in the Reno area where they are now among the most expensive in the nation.

A new report from the Reno-Tahoe Airport Authority projects even more growth in the number of visitors and new residents in the area due to more companies doing business in northern Nevada and hiring workers.