Located right next to Reno, Sparks has always been sought out by families and retirees looking for relaxed and inviting neighborhoods, outdoor recreation at spots like the Truckee River, as well as its engaging arts scene, shopping, and dining. These same amenities will start attracting investors to the area as rising mortgage rates cause the real estate market to cool.
Although buyers can take advantage of less competition, their buying power may be impacted by factors like interest rates and the cost of living. Decreased buyer power will also lengthen seller listing times. For a better understanding of what’s projected for Sparks real estate throughout the rest of 2023, here’s what you need to know about current market conditions.
Sparks in Statistics
The median sales price for Sparks single-family homes is $504,250
Median prices decreased less than 1% compared to last year
Median prices for condos have increased by 6.4%
Units sold in the Reno/Sparks area have decreased by 36.2%
Homes take 47 days to contract, up 213.3%
Reno/Sparks has three months supply of inventory, up 233.3%
Current Sparks market trends
Although a cooling market, sellers still enjoy an advantage, as inventory levels are below the 4-6 months necessary for a balanced market. Insufficient inventory is also visible in the median sales price, which has remained relatively constant compared to last year’s figures. Even so, the transition into decreasing median prices and the sharp increase in inventory suggests that market conditions will tip more in buyers’ favor throughout the year.
Sparks 2023 Forecast
Buyers and sellers in the area should also be mindful of factors like new construction. New home construction has slowed in nearby areas like Reno due to supply chain issues and rising material costs from inflation. However, sellers may feel the competition from multifamily construction, which has increased by 20%. Reno’s strong economy will also continue funneling interest into Sparks, one of its more populated suburbs. In particular, the new year will feature more demand from millennial buyers.
Although the market will continue to decline, Spark’s economy is strong and stable, which eliminates concerns of a possible housing crash. A housing market crash isn’t likely for the new year, as overall low levels of inventory help balance lowering prices and competition. With a steady annual population growth of 2.29%, increasing median household income, and 4.1% yearly employment growth, Sparks will remain a good place to buy, sell, or invest.
Sparks buyers in 2023
However, buyers should look out for competition from investors seeking out the same amenities and perks in Sparks. Additionally, those financing with a mortgage also must factor in high interest rates. Currently, the average Nevada rate for a 30-year fixed mortgage is 6.47%, while 15-year fixed mortgages are at 5.88%. This, coupled with housing expenses that are 24% higher than the national average, may be difficult for buyers.
Sparks sellers in 2023
However, the market will continue cooling into the new year, which will give sellers fewer advantages. As inventory rises and buyer demand decreases, sellers on the market will experience more competition. Working with a local real estate agent is the best way to make a competitive home listing marketed well to buyers. Sellers should also expect lower offers from buyers, as well as more leniency when making negotiations. Although a home sale will take longer than in years past, Sparks’ growing population and job force will continue generating interested buyers.