By Kayla Anderson
The Sparks housing market is hot right now. With low inventory and creeping home prices, future home buyers are encouraged to invest sooner than later. As monthly rental rates are rising to match monthly mortgage rates and interest rates are going up, experts say it makes more sense to buy a home if you plan on staying in the area long enough.
“Prices have leveled off in the last year or so, but homes under the $400,000 price mark are flying off the market fast; they’re gone within a day or two,” says Real Estate Agent Nick Abe with The Mike Wood Team at Re/Max.
New developments being built at Kiley Ranch, La Posada, and other locations in Sparks will be creating new opportunities to invest, but right now what is currently on the market is overpriced because of demand. Right now, Sparks is seeing about a month of inventory, meaning that it would take that amount of time to sell all of the listings in the area.
If there are 0-4 months of inventory in any given place, then it is considered a seller’s market because demand is exceeding supply. A balanced market is when homes are listed for around 5-8 months, showing that homes are not selling too quickly (causing prices to skyrocket), yet the available homes aren’t sitting around too long, either.
On Zillow, three homes for sale in Sparks have an estimated monthly mortgage rate of $1196-$1876. On Trulia, the median monthly rent for a home in Sparks is $1650 (up from $1500 in August 2017).
Here are some average monthly rents for 1-bedroom apartments posted on Realtor.com in the Sparks area (as of the beginning of May 2018):
$1325- Canyon Vista (5200 Los Altos Pkwy)
$1368- The Villas at D’Andrea (2200D N Andrea Pkwy)
$1240- Verona (1475 Vista Del Rancho Pkwy)
$1495- Spring Villas Townhomes (431 Spring Villas Dr)
$1220- Eastland Hills (1855 Baring Blvd)
Trulia is showing that the average monthly rental rate for available 2-bedroom apartments at The Trails at Pioneer Meadows is $1480-$1680 in the peak season, a little bit of a jump from the $1175 starting rent from September 2016 (in 2013, two-bedroom apartments were $900-$1000 a unit).
The Sparks area is definitely in a seller’s market right now. “More houses will go on the market going into summer, but it will be just as bad. It’s been a hot market for the last two years but right now it’s just a little bit more competitive,” Abe says.
Since inventory has been low in the last 3-4 years, Abe encourages potential buyers to save their money, work on their credit scores, and consider going above and beyond like writing a personalized letter to the seller.
“We are seeing more cash investors; having more money will put you in a better position to have your offer accepted,” says Abe. For those starting the home hunting process, Abe suggests, “Get pre-approved, have all of your ducks in a row, be ready to go when you find the house you want. Now is the time to buy.”