Here is my monthly analysis of the single-family homes market in Nevada County.
Who Said September Slows Down? Buyer demand continues to impress with 147 new escrows in September, the third highest month for 2015. The number of new listings hitting the market remained at 152. With the same amount of new listings and the higher number of new escrows, our available inventory fell slightly 1.3%. The fact that the available inventory decreased that low of a percentage indicates that a fair number of escrows cancel out, either due to buyer remorse, concerns of property condition, or financing difficulties (homes not appraising for contract prices or loans not being approved).
September Shows 2nd Highest Average Sold Price: The average price per square foot for the 3rd Quarter is 2.8% higher than Q3 2014 and 4.6% higher than Q3 2013. The average sold price in September was $384,000, the second highest month in 2015 and only 1% off the peak price of $388,000 in April. The 3rd Quarter average sold price for 2015 is 2.3% higher than Q3 2014. Our rolling twelve month average is up 9% over the previous twelve months.
Higher Priced Listings Are Selling: The median sold price for the 3rd Quarter is up 4.5% over Q3 2014. The higher increase in median price (4.5%) compared to the average price (2.3%) means that homes in the higher price ranges are selling more this year than last. In fact, homes priced over $450,000 showed 42% more sales Q3 2015 over Q3 2014, and 60% more sales have recorded over the last twelve months than the previous time period. That’s a huge increase and is very encouraging for homes priced above the average. The sweet spot for this increase in units sold is between $450,000 and $600,000, and homes over the $600,000 mark are not really showing more activity.
Sellers Have the Market Locked Down Tight: Based on pending sales, our months of inventory (MOI) is extremely low at three. This past quarter showed a 36% decrease in MOI compared to Q3 2014 based on both the pending and closed sales calculations. The rolling twelve month average MOI is down 23% from the previous twelve months. Based on the current pace of sales, we would have to see 570 additional new listings hit the market in one month to get to six months of inventory. That’s three to four times higher than what we see on a monthly basis, so it’s safe to say that sellers are keeping their tight grip of control on this market.
The Takeaways Remain the Same: Because these trends are continuing, buyers and sellers have the same takeaways.
- All homeowners who have considered selling should call me today to formulate the best strategy for success. Your home probably has more equity than you realize. Sellers need not wait to put their homes on the market next year; the time to sell is now!
- Buyers who have been on the fence and hoping for a slowdown in sales and prices need to realize that neither is happening. Buyer competition remains fierce, and the market continues to appreciate. Buyers who wait too long may find themselves priced out of the market. Call me today to get the process started. Best Regards, Cindy