It’s once again time for my monthly analysis of the single-family home market for western Nevada County, as reported through the Trends tool provided by our MLS.
October New Escrows Slower than September 2015 but Higher than October 2014: As is somewhat expected this time of year due to seasonal swings, the number of new escrows (119) in October was down 10.5% from the prior month. However, that showed a 22.7% increase year over year. The number of new escrows in the last three months is 10.6% higher than the same period in 2014 and 20.5% higher than 2013. So although we are seeing a seasonal slowdown, we continue to see more buyers this year than we’ve seen since 2004.
Inventory Takes a Significant Dip: The number of new listings (107) was the lowest we’ve seen all year: down 37% from the 2015 monthly average. We ended the month of October with only 417 available single-family homes, which is down 6.1% month over month and down 21.5% year over year.
Last Twelve Months Averages Show Lower Inventory, Higher Demand, and Appreciating Prices: Whereas the average sold price ($379,000) for October was slightly down 1.8% from September, our last twelve months (LTM) averages are up 9.2% in sold price, a result of a 12.9% decline in inventory and a surging 14.6% increase in units sold. This is a sustainable market driven by qualified buyers and equity sellers. The California Association of REALTORS® predicts that the 2016 California housing market will produce 3.4% more units sold and a 4.3% increase in median sold price. With our LTM average of months of inventory (3.5 months) being down 27% from the previous twelve months, there’s a very good probability that Nevada County will outperform the state averages in 2016 just as it has done this year.
Takeaways for Buyers and Seller:
- Sellers, don’t be afraid to market your home now. Yes, it can be disruptive to your family to show your home during the holidays, but there is a solid number of serious buyers wanting to make a purchase right now. With less competition, your home will stand out even more and could sell more quickly now than in the spring. Call me today to determine how much equity your home currently has (which is probably more than you think) and to formulate a customized strategy for success.
- Buyers, there’s absolutely no reason to put your home buying plans on hold. Prices will not go down. Rates may fluctuate higher as the bond markets react to the Fed’s anticipated December hike of the Fed funds rate. Higher prices and higher rates could result in many home buyers being priced out of the market. Call me today to find out how much you can afford and see the beautiful homes that could be yours!