February 2026 Reno–Sparks Real Estate Market Update
The Market Is Waking Up — But This Spring Feels Different
February is typically when the Reno–Sparks housing market starts to wake up after the winter slowdown. Buyer activity begins to increase, sellers re-enter the market, and early spring trends start to take shape.
But in 2026, something feels different.
Inventory is shifting, buyers are more selective, and sellers are adjusting faster than we’ve seen in recent years. The February data gives us an early look at how the spring market may unfold — and what both buyers and sellers should be watching closely.
Market Overview and Methodology
This update covers the Reno–Sparks metro area only and includes single-family residential properties — homes, townhomes, and condos. It does not include multifamily properties, land, or commercial real estate.
Although this is the February 2026 update, most of the data reflects activity through January 2026, allowing for accurate year-over-year comparisons with January 2025.
Mortgage Rates: Moving in the Right Direction
Mortgage rates remain the most influential factor in today’s housing market. The majority of buyers rely on financing, so even small rate changes have an outsized impact on affordability and demand.
As of January 2026, the average mortgage rate sits at 6.1%, down 12.4% from last year’s 7.0%. That’s meaningful improvement and a clear positive trend heading into the spring season.
Rates continue to move within a defined range, but the overall direction has been lower, which is helping ease monthly payments and bring some buyers back off the sidelines.
Median Home Price: Flat and Stable
The median home price in Reno–Sparks currently stands at $525,000, unchanged from this time last year.
This is the number that tends to receive the most attention in headlines, but the real story is stability. Prices are not rising rapidly, but they are not falling broadly either. Instead, the market continues to move sideways.
This flat pricing environment reinforces how closely prices are tied to affordability and mortgage rates in today’s market.
Mortgage Payments and Affordability: Noticeable Improvement
Lower rates are translating into lower payments. The average monthly mortgage payment is now approximately $3,681, down 7.7% from last year’s $3,986.
That improvement is reflected in the affordability index, which now sits at 67, up 21.8% from last year’s 55.
The affordability index represents the percentage of a median-priced home that a median-income household can afford. While affordability is still below ideal levels, this is a meaningful step in the right direction and one of the most encouraging trends in the current market.
New Listings: Fewer Sellers Entering the Market
In January 2026, 491 new listings came on the market — down 6.1% from last year’s 523.
Most new listings continue to fall between the $400,000 and $600,000 price ranges. As prices rise above $600,000 and especially beyond $750,000, new listings drop off sharply — a pattern consistent with affordability constraints.
Lower new listing activity means sellers currently face less competition, especially in the mid-price ranges.
Active Inventory: Down, but Unevenly Distributed
Total active inventory currently sits at approximately 950 homes, down about 15% year over year.
While overall inventory is lower, it is not evenly distributed. Most available homes are clustered in the $400,000 to $750,000 range, but there is also a significant concentration of homes priced $750,000 to $1.5 million and above.
This imbalance becomes important when compared to actual sales activity.
Closed Sales: Slower to Start the Year
There were 333 closed sales in January 2026, down 7.5% from last year’s 360.
January is traditionally a slower month for closings, as most January sales reflect contracts written in November and December. While these numbers are not alarming, they are worth monitoring as we move into the more active spring months.
The real insight comes when comparing closed sales by price range to active listings. In the higher price ranges, there are far more homes for sale than homes actually closing — a dynamic that can create downward pressure on prices if it persists.
Supply of Inventory: Still Tight
Current months of supply stand at 2.7 months, down 8.1% from last year’s 3.0 months.
This remains a relatively tight market overall, particularly for the time of year. However, supply is much higher in the upper price ranges, where demand has been slower and competition among sellers is greater.
Unsold Listings: Lower, but Worth Watching
There were 106 unsold listings in January — homes that were listed but did not sell — down 14.5% from last year’s 124.
These numbers are not concerning, but unsold listings are one of the early indicators of price sensitivity and seller over-expectation. If this number begins to rise, it often precedes pricing adjustments.
What This Means for Sellers
For sellers, there are positives and cautions.
On the positive side, there is less competition, lower inventory, and improved affordability. On the cautionary side, home prices are not moving up, and in higher price ranges, limited buyer demand could lead to price reductions.
Pricing your home correctly — based on current data, not past expectations — is more important than ever.
What This Means for Buyers
For buyers, the outlook is improving. Mortgage rates are lower, payments are more manageable, and affordability is trending in the right direction.
While inventory is somewhat tighter, buyers who are prepared and informed can find opportunities — especially as sellers adjust expectations early in the year.
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