Here’s my monthly market analysis of single-family homes in Nevada County. There really aren’t any surprises this month, as the general trends have continued. Do take a look at the average sold price, however. That trend isn’t a surprise given the low supply and high demand, but the statistic is interesting.
- Buyer Demand Continues Near Record Levels: With 145 new escrows, April 2015 showed the second highest demand of buyers in over five years, second only to March 2015. Buyers continue to be the driving force in this appreciating market.
- If we had more listings, we would have more sales! The number of new listings in April was down 14% from March, yet the number of pending sales only decreased by 6.5%. Buyers are snatching up the new inventory that is priced right. 45% of the new escrows were on listings that had been on the market for only 21 days or less. The months of inventory based on pending sales is at 2.8 months, which equals the feeding frenzy we saw in the Spring of 2013. If we had more new listings, we would have more sales.
- The Average Sold Price is the Highest We’ve Seen in Seven Years: That’s correct! We haven’t seen an average sold price of $390k since 2008. We still aren’t back to the peak prices, but this seller’s market has significantly driven up prices. The rolling twelve month average sold price is 7.5% higher than the previous twelve months. How much longer will prices continue to appreciate, and how high will they go? I would expect the next few months will show similar sold prices simply due to the supply and demand forces we’ve seen this calendar year. We shall see as these high numbers of pending sales eventually close and report the sales prices.