Sparks, Nevada Real Estate Trends: Complete Market Analysis

November 27, 2023

Compared to the real estate markets of neighboring Reno and other Nevadan cities (Carson City and Sunrise Manor), Sparks’s housing market became stagnant in the fourth quarter of 2023.

As new construction enters daily, home prices are falling while buyers take advantage of high inventory and price cuts. However, the mortgage rate nearing the 8% mark made the buyers conscious; they refrained from home purchases in fear of financial burden.- resulting in the slow pace of sales. 

Trends of Sparks, Nevada Real Estate Market

1. Majority of the Residential Properties Saw Price Drops

Spark took the brunt of high mortgage rates similar to major US real estate markets. Although Single-family homes saw a 2.3% (median price at $517,000) price growth, the overall residential property price dipped by 1.7% (median price of $488,000) as the condo and townhomes did poorly in the market. On the other hand, the growth doesn’t put much value as the country faced a 3.7% inflation as of November 2023. 

Therefore, if an investor lists a new construction and sets the median price per the market value, considering the rising construction and maintenance costs, it won’t even make them break even on their investment. 

2. The Market is Balanced Due to New Listings

Sparks’ housing market is balanced for three reasons: the number of new listings, the decrease in the influx of people, and slow sales. As of October 2023, the city has 529 residential properties up for grabs, while in November, the number increased to 602. Followed by homebuyers’ aversion to relocating in Sparks – 0.44% of homebuyers searched to move into Sparks from outside metros- lengthened the inventory abundance. 

Unlike the first two quarters of 2023, where all NV cities faced a low inventory crisis, the new listing peaked and turned the Sparks housing market into a buyer-friendly and balanced one. Hence, the market climate appeals to Gen Z and millennial buyers who avoided the market in the summer of 2023. 

3. Sellers Faces Challenges to Make a Profit

Sellers faced challenges to make a profit, with 36.8% of homes experiencing price drops and the sale-to-list price ratio at 98.2%. With a house on the market for more than 46 days (the median day to sell a property in Sparks), the situation is intimidating for current sellers. As new listings bring competition, sellers are reevaluating the pricing, especially since demand historically reaches its seasonal low in December. Sellers willing to join the market now should understand that current buyers are hesitant because of record-high mortgage rates and inflation. 

A balanced market gives the buyers negotiation prowess, and home sellers have to oblige, considering the slow market. Hence, home investors who don’t need fast money are waiting out in the market and trying to hold the property till the peak summer months: March, April, and May. 

4. Buyers Capitalize on the Market Cooldown

Even though the high mortgage put immense pressure on homebuyers, individuals are moving to Sparks, NV, thanks to the seasonal market cooldown, high housing inventory, and city amenities.  Following years of a seller’s market characterized by never-ending bidding wars, all-cash, no-contingency deals, and buying houses before they were even listed, prospective homeowners are searching frantically for any hint that they could soon be in for a break.

The city saw a 14.1% drop in house sales in October 2023- giving buyers a versatile array of residential property collections and reaching terms on a bargain. With fewer buyers competing for homes, buyers can take their time to research properties and make informed decisions, and finding a home becomes more accessible with a strict budget. 

Sparks, Nevada Housing Market Forecast for 2024

Home values may gradually decline to more favorable levels if supply increases and demand stays weak. As the Sparks Real Estate market is transitioning in favor of buyers, the market will move faster once the mortgage rate is attainable in 2024. Unlike in 2008, the US market bounced back, and sales are predicted to grow as the mortgage rates calm down. 

In the coming months, Sparks home prices may slightly decrease in real estate markets. A decrease in demand has resulted in many buyers pulling out of the market due to higher mortgages and low inventory. Since the market enormously facilitates the buying of Sparks, sales will increase in the near future. 

Photo from Zillow

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