Did we already experience a "crash" in 2023...?

[Jake Andronico]

Not many people know this, but Reno, NV is actually the 23rd most expensive market in the US. 

But, why??

1. Land Constraints: 

- Surrounded by dense mountains, our small market only measures about 15x20 miles. 

- Lots of demand from Northern California, and not a lot of supply. 

2. Nevada's Taxes: 

- Nevada's property taxes DO NOT reassess on the sale. 

- No state income tax. 

3. Diversified Job Growth: 

- Tesla, Google, Redwood Materials, IGT, etc.

- Moving away from relying solely on gaming to more diversified employment including tech and manufacturing. 

4. Proximity to Lake Tahoe:

- Around 15 million people visit Lake Tahoe every single year. 

- Reno/Sparks/Carson City/Gardnerville parallels the entire lake, and is only about a 30-45 min drive.  

Did Reno’s Real Estate market already experience a “crash” in 2023…? 

According to Northern Nevada MLS Data, the median single family home in Northern Nevada went from $510,000 at its peak in 2022 all the way down to $475,000 in 2023 (nearly a 10% drop)

So, why didn’t anyone talk about this? 

Well….

1. Interest rates had nearly doubled from the same time in 2022, significantly impairing affordability. 

2. Buyer sentiment was nearly at an all-time low. 

3. Record snowfall made it extremely difficult for buyers to get out and go see properties. 


So, what does this mean if you bought a $500K property in Q1 of 2023?

Your property is now likely worth around $534,000 (up about 6.8% YOY).

What is everyone seeing in their market?