January 2026 Reno–Sparks Real Estate Market Update

Familiar Questions, Early Answers, and What the Data Is Telling Us

A new year always brings new expectations, but the Reno–Sparks housing market is starting 2026 with some very familiar questions.

Are prices finally adjusting?
Are buyers stepping back in — or stepping aside?

The latest data offers some early answers.

This January 2026 market update breaks down where mortgage rates, prices, inventory, affordability, and sales activity stand as we begin the year — and what it all means for buyers and sellers moving forward.

January 2026 Market Snapshot

Mortgage Rate: 6.2% (down nearly 8% year over year)
Median Home Price: $547,945 (up slightly year over year)
Average Mortgage Payment: $3,876 (down 4.4% year over year)
Affordability Index: 63 (up 16.7% year over year)
New Listings: 296 (essentially flat)
Active Inventory: 969 homes (down 13.6%)
Closed Sales (December): 483 (up 12.1%)
Total 2025 Sales: 5,692 (below historical norms)
Months of Supply: 2.0 (down 22%)
Unsold Listings: 192 (unchanged)

Mortgage Rates: Finally Showing Some Relief

Mortgage rates remain the single biggest driver of housing market activity. As of the end of December 2025, the average mortgage rate sits at 6.2%, down nearly 8% from last year’s 6.7%.

While rates are still elevated compared to pre-2022 levels, the trend is clearly improving. Looking ahead to 2026, rates are expected to remain in the low-six percent range for at least the next three to six months, assuming broader economic conditions remain stable.

Lower rates directly impact affordability, monthly payments, and buyer confidence — which is why this metric continues to lead every market update.

Median Home Price: Sideways, Not Soaring

The median sales price for the Reno–Sparks market currently stands at $547,945, up only slightly from $546,250 one year ago.

This figure includes single-family homes, townhomes, and condos across the entire metro area. Reno typically trends slightly higher, while Sparks trends slightly lower.

The key takeaway is simple: prices are not meaningfully rising or falling. Instead, they have remained in a narrow range for the past two to three years, showing a clear sideways pattern.

Mortgage Payments and Affordability: Improving, But Still Tight

With slightly lower mortgage rates and flat home prices, the average monthly mortgage payment has declined to approximately $3,876 — down 4.4% from this time last year.

That improvement is reflected in the affordability index, which now sits at 63. This represents a 16.7% improvement from last year’s reading of 54.

The affordability index measures the percentage of a median-priced home that a median-income household can afford. While the improvement is encouraging, a truly balanced and active market typically requires affordability levels closer to 80 or higher.

New Listings: Flat Year Over Year

In December 2025, 296 new listings came on the market — essentially unchanged from the 295 listings recorded in December 2024.

Most new listings continue to cluster between the $400,000 and $650,000 price range. Activity drops off significantly at higher price points, which remains a consistent theme in today’s market.

Active Inventory: Lower Than Last Year

Total active inventory currently stands at 969 homes, down 13.6% from last year’s 1,121 homes.

Seasonality plays a role here, as inventory is typically lower in November, December, and early January. However, inventory remains heavily concentrated in the $750,000 to $1.5 million and above price ranges — where buyer demand has been notably weaker.

For sellers in these upper price ranges, competition remains elevated.

Closed Sales: Higher Than Last Year, But Historically Low

There were 483 closed sales in December, representing a 12.1% increase from last year’s 431 sales.

While the year-over-year improvement is positive, the bigger picture is more concerning. Total sales for all of 2025 came in at 5,692 homes — well below the historical average of 6,500 to 7,500 annual sales for the Reno–Sparks area.

Sales activity dropped sharply beginning in early 2022 when mortgage rates spiked and has yet to fully recover, despite continued population growth and new construction.

Supply of Inventory: Low, But Seasonal

Current months of supply sits at 2.0, down 22% from last year’s 2.6.

A balanced housing market typically sits closer to 3.5 months of supply, while numbers above five months often signal slowing conditions. That said, lower supply is common during winter months, so this figure is not unusual for this time of year.

It will be an important metric to watch as we head into spring 2026.

Unsold Listings: Holding Steady

There were 192 unsold listings — homes that were listed but never sold — exactly the same number as last year.

While this figure has not increased, it remains an important indicator. Rising unsold listings often point to overpricing and can precede price softening if the trend accelerates.

What This Means for Sellers

For homeowners considering selling in 2026, expectations matter. Prices have not moved significantly in several years, and sellers should not expect to command meaningfully higher prices than comparable sales from six, twelve, or even twenty-four months ago.

Correct pricing from the start remains one of the most critical factors in achieving a successful sale.

What This Means for Buyers

For buyers, there is cautious optimism. Mortgage payments are easing, affordability is improving, and rates are trending in a better direction.

While the market is not “cheap,” conditions are meaningfully better than they were one year ago — especially for prepared buyers who understand the data.

The Assist2Sell Advantage

If you’re curious about your home’s value or are planning a move in 2026, accurate information matters.

You can get a quick home valuation by visiting 4RenoHomes.com and clicking the “Find Out Now” home value tool.

Assist2Sell has been serving the Reno–Sparks community for decades, offering full-service real estate for just $4,995 — or 1% on homes over $500,000 — delivering expert representation without traditional commission costs.

Assist2Sell — Way Smarter.