April 2025 Market Insight from Sanchez Gaunt Capital Management
The Northern Nevada housing market continues to defy gravity—at least for now. On the May 15 episode of The Jon Sanchez Show, our own Jason Gaunt joined local real estate expert Corey Edge (Edge Realty) and mortgage strategist Dwight Millard (Synergy One Lending) for an in-depth discussion on the region’s real estate dynamics. Spoiler: The market is showing signs of subtle—but important—change.
April at a Glance:
Median home price (Reno/Sparks, stick-built homes): $585,000
→ Up 2.5% from March and 3.5% from April 2024Inventory levels:2.2 months
→ Up 10% from March and 60% year-over-year30-year mortgage rate (average):6.94%
→ FHA loan rates are slightly more forgiving at 6.4%
What's Holding Prices Up?
Despite mortgage rates nearing 7%, home prices remain firm. As Corey Edge pointed out, the market has largely stabilized in this high-price range over the past few years. It’s not necessarily climbing at breakneck speed, but it’s not retreating either. The core reason? Inventory remains low—although that’s slowly starting to change.
“2.2 months is still technically a seller’s market,” Corey said. “But it’s far more inventory than we’ve had in recent years. Buyers now have options—and time to think.”
Affordability Remains a Real Challenge
Affordability is the defining tension in today’s market. A buyer putting 20% down on a $585,000 home at current rates faces a monthly payment of roughly $2,800—not including taxes or insurance. According to Dwight Millard, even modest rate relief could spark more activity, but meaningful affordability likely won’t return until rates dip into the low 6s or upper 5s.
“We’ve seen MI [mortgage insurance] costs as high as $800/month on some conventional loans with lower credit scores,” Dwight noted. “Thankfully, FHA is doing a better job of adjusting to the environment, but challenges persist.”
Why Is Inventory Rising—And Will It Last?
The jump in inventory, while still modest by historical standards, is noteworthy. So what’s behind it?
Equity Lock-In:Many homeowners are sitting on record-high equity and may be looking to sell before prices soften.
Lifestyle Changes:Retirement, job shifts, and relocations are prompting movement.
Market Psychology:As financial markets improve, confidence in making big-ticket decisions—like buying or selling a home—tends to follow.
“If people feel their wealth is growing—even just on paper—it makes a big difference in their willingness to transact,” Jason observed.
What Happens If Rates Drop?
One of the most insightful points raised during the discussion was this: If home prices stayed strong even as mortgage rates doubled, what happens when rates come back down?
The panel agreed that a rate drop could unleash a new wave of demand, which might push prices even higher—especially if inventory doesn’t keep pace. That dynamic could create both opportunity and risk for buyers and sellers in the coming months.
Reverse Mortgages: A Growing Conversation
With many homeowners aging in place and sitting on substantial equity, reverse mortgages are also starting to resurface in local conversations. As Dwight explained, they remain underutilized despite offering flexibility for those looking to access their home’s value without selling.
“Most people don’t understand how the product works—or they still associate it with negative headlines from years past,” he said. “But done correctly, it can be a powerful tool for retirement cash flow.”
Bottom Line:
The Reno-Sparks market remains resilient, but the landscape is shifting. Inventory is growing. Rates are sticky. And buyer behavior is evolving.
For investors, homeowners, and prospective buyers, understanding these crosscurrents is essential for making sound decisions in a complex environment.
📌 To hear the full conversation, stream the May 15 episode of The Jon Sanchez Show on Apple Podcastsor Spotify.
🧭 Looking to align your financial strategy with today’s housing market trends? We’re here to help. Reach out at sanchezgaunt.comto schedule a conversation.