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Nevada County Real Estate Update: Median price of homes sold rises to $565K

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Home sales in western Nevada County continue to keep pace with what’s been one of the hottest markets the community has seen in decades, moving the median price of homes sold to a record $565,000.

Monthly area sales stats, though, also offer a bit of a mixed message on what’s still to come in 2021.

The 199 homes sold in July totaled for a 9.3% increase over June sales, and marked the highest number of homes sold in any single month this year. 

But for the first time in 2021, total sales were short of the same month year-over-year, as 206 homes were sold in July 2020. Pending sales were down 19.4% in July from June, the third-straight month of decline in pending sales. 

  • BY THE NUMBERS
  • July home sales in western Nevada County:
  • $565,000 — Median price (2021)
  • $479,500 — Median price (2020)
  • 12 – Days on market (2021)
  • 24 – Days on market (2020)
  • 199 – Homes sold (2021)
  • 206 – Homes sold (2020)
  • 236 – Homes for sale (2021)
  • 295 – Homes for sale (2020)

And the median days on market for the month crept up to 12 days, up from nine in June.

Pulling back for a wider view, however, offers a look at a more typical days on market median for the month of July. Last year, as sales began to pick up pace after the economic shutdown, the median was 24 days on market. In 2019, that number was 43 days.

And though the 199 homes sold in July is a 3.4% dip from the 206 in year-over-year monthly comparison, it’s actually 46.3% higher than the 136 sold in July 2019. One year earlier than that, in July 2018, 139 homes sold in a median 38 days on market.

… though the 199 homes sold in July is a 3.4% dip from the 206 in year-over-year monthly comparison, it’s actually 46.3% higher than the 136 sold in July 2019.

— western Nevada County home sales, july 2021

The $565,000 median price of homes sold in July, a 7.4% increase over June, is 7.6% higher than January sales and 17.8% higher than the $479,500 recorded in July 2020. The median prices of the 1,744 homes sold for all of 2020 in western Nevada County was $455,000 — 24% lower than the price homes sold for here last month.

SLIGHT INCREASE IN SUPPLY STILL SHORT OF ’NORMAL’

One key to the higher prices sellers have so far enjoyed throughout 2021 has been an extremely limited inventory. 

Historically, the number of homes listed for sale in August has been substantially higher than the 236 currently on the market. Although that number — a 5.8% increase over June — is the highest monthly total of active listings this year, there were 295 on the market in July 2020. 

But to pulling the low inventory into a wider perspective, one year earlier in July 2019 — in a pre-COVID-19 economy — there were 647 homes listed for sale in western Nevada County.

The effects of the limited supply not meeting high demand is apparent in the median price of homes sold, but also is evident in the price per square foot of homes sold, which in July rose to a high of $306 this year.

That’s a 32% increase over July 2020 and 29% higher than the $238 price per square foot recorded in July 2019.

Brian Hamilton is the assistant to the regional manager for the Betsy Hamilton Real Estate Team. Contact Betsy Hamilton at realestatebetsy@gmail.com or 530-263-9044. Visit MidLifeOfBrian.com for previously published market updates. Contact Brian Hamilton at BrianHamiltonRE@gmail.com

Nevada County Real Estate Update: Sales continue to outperform the norm

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Heading into the second half of a year that’s seen record sales in western Nevada County, pushing prices to historical highs and short stays on the market, industry experts are saying the state’s frenzied real estate market might finally be slowing down.

“We’re starting to see what a difference just a slight uptick in inventory and listings can do to help lessen the buying frenzy and create a sense of normalcy,” California Association of Realtors President Dave Walsh said in a new release announcing state sales figures for the month of June.

But, as the stats show, California and western Nevada County sales continue to outperform the “norm.”

SINGLE-DIGIT DAYS ON MARKET, ABOVE ASKING OFFERS

The average days on market increased in the local market — by one day — to nine days, the third-straight month of a single-digit average until sellers have an accepted offer after listing their home for sale. For all of 2021, the average days on market is 11.

On average it took 21 days on market for a home to sell in June 2020. But even that is far from the “normal” 45-day average more typical of the local market than what’s been the case since the pandemic.

“The market is still extremely competitive with 70% of homes selling above list price,” Walsh said, “however, the number of new listings increased in June, and both the share of listings with a reduced price and median reduction amount increased, giving buyers more opportunities to purchase.”

June’s median sale price — $526,000 — dipped 4% from last month, but is still the third-highest ever recorded in western county, behind $550,000 in April and $549,500 in May. 

And, for those keeping score, that remains 23% higher than homes sold in western Nevada County one year ago, in June 2020.

Statewide, California’s median home price set a record high — $819,630 — for the fourth-straight month. That’s hip from $818,260 in May and $626,170 from June 2020, a 31% increase.

Active listings across the state reached the highest level since October 2020, with a 15.4% increase over the prior month. New active listings, still down 12% from two years ago, saw an 8% increase month-over-month and year-over-year, California Association of Realtors’ statistics show.

“Tight supply, low rates and the change in the mix of sales continue to be the primary factors pushing up home prices to record levels,” said Jordan Levine, CAR vice president and chief economist.  

“However, we are expecting price growth to slow from this point on as the top end of the market begins moderating,” Levine said in the news release. “With pending sales down for the first time in 14 months, closed sales — which have (declined) five out of the last six months — will likely remain lackluster as the market enters the second half of the year.”

SALES STRONG DESPITE LOW INVENTORY, HIGH PRICES

Pending sales were down nearly 10% in Nevada County in June with 257 homes under contract — but still the second-highest total month in 2021 to May’s 285 pending transactions. A year ago in June, there were 300 sales pending.

Although June’s home sales statewide saw a 2.2% decline from the prior month, western Nevada County totaled 182 homes sold, the highest single month of sales in 2021 and the most since 201 units sold in August 2020.

As was the case around the state, western county saw a slight uptick in inventory in June with 223 homes listed for sale. That’s up 9% from May’s 205 homes, but still far below the 356 — on the market last June — when the community was in the thick of the pandemic.

For some context on what’s “normal” for western Nevada County’s market, there were 611 homes on the market in June 2019 and 503 in June 2018.

The lower than normal inventory hasn’t stopped area agents from totaling more sales over the first half of 2021 than both 2020 and 2019. Year to date, there have been 873 homes sold in western county in the first and second quarters combined. 

That’s an 83% increase over June 2020, and up 27% from the 686 units sold in first half of 2019 in western Nevada County.

At $391, June’s statewide average price per square foot was an all-time high in California. Western Nevada County also reached an all-time for its local market at $297, up from its previous high of $290 recorded two months ago, in April 2021.

Brian Hamilton is the assistant to the regional manager for the Betsy Hamilton Real Estate Team. Contact Betsy Hamilton at realestatebetsy@gmail.com or 530-263-9044. Visit MidLifeOfBrian.com for previously published market updates. Contact Brian Hamilton at BrianHamiltonRE@gmail.com

Hot real estate market sizzles through winter months in western Nevada County

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January home sales in western Nevada County continued to see the same trends that led to the hot market home sellers have enjoyed over the second half of 2020, with 38% more homes sold than January 2020 and the median price paid at $525,000 — up from $505,000 in December and up from $420,000 in January 2020.

Statewide, according to California Association of Realtors data, more than one third of (35%) buyers paid above asking price in 2020, up from 26% of buyers doing so in 2019.

Overall, California home prices saw an 9% increase in 2020, and Zillow is forecasting a 10.6% increase by end of 2021.

BY THE NUMBERS
January sales in western Nevada County:
$525,000 — Median sold price (2021)
$460,000 – Median sold price (2020)
21 — median days on market (2021)
83 — median days on market (2020)
102— homes sold (2021)
74 — homes sold (2020)
169 — total homes listed for sale (2021)
360 — total homes listed for sale (2020)

Zillow data also shows that from the beginning of 2012 to the end of 2019, the median price of homes in California appreciated by a whopping 85.5% — from $305,000 to $566,000. 

Low inventory and low interest rates continue to drive higher prices and faster sales in terms of average days on market, a trend experts expect will continue in 2021 — as long as there are actually homes to sell.

“An extremely favorable lending environment and a strong interest in homeownership will continue to motivate financially eligible buyers to enter the market,” California Association of Realtors President Jeanne Radsick said in the association’s 2021 forecast report. “While the economy is expected to improve and interest rates will stay near historical lows, housing supply constraints will continue to be an issue next year and may put a cap on sales growth in 2021.”

Since May 2020, when there were 431 homes listed for sale, western Nevada County has seen continued dwindling inventory. June saw 356 homes on the market. But the next seven straight months saw fewer than 300, including January 2021, which with 169 homes listed was the second consecutive month of fewer than 200 homes for sale locally.

Fewer options on the market has meant buyers are moving faster on making offers on those available.

Since the average days on market of 45 recorded in May, that statistic has eclipsed 30 days just once — at 31 days in August — over next eight months. The average days on market in January was 21 days, up from 19 in December — and up from a low of 11 days in November 2020. 

And although western county has seen a continued drop in average days on market annually, dating back from an average of 68 days in 2015, the drop to 21 days averaged in December was nearly half from 2019’s average of 41 days.

But, despite the low inventory locally, January saw a total of 102 homes sold in western Nevada County, up from 74 in January 2020 — the eighth-straight month of increased sales in year-over-year comparisons.

Brian Hamilton is the assistant to the regional manager for the Betsy Hamilton Real Estate Team. Visit MidLifeOfBrian.com for previously published market updates. Contact him at BrianHamiltonRE@gmail.com.

Betsy Hamilton Real Estate Team
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See Betsy’s latest listing, posted just this week in the Grass Valley/Nevada City area.