Real Estate
January 14, 2022
Inflation continues to press on mortgage rates. The 30-year fixed-rate mortgage averaged 3.45% this week, up from last week’s 3.22% average, Freddie Mac reports.
“Mortgage rates rose across all mortgage loan types, with the 30-year fixed-rate mortgage increasing by almost a quarter of a percent from last week,” says Sam Khater, Freddie Mac’s chief economist. “This was driven by the prospect of a faster than expected tightening of monetary policy in response to continued inflation exacerbated by uncertainty in labor and supply chains. The rise in mortgage rates so far this year has not yet affected purchase demand, but given the fast pace of home price growth, it will likely dampen demand in the near future.”
Despite rising mortgage rates, owning a home remains more affordable than renting, the National Association of REALTORS® reports. The monthly mortgage for owning a median-priced home is $1,260 compared to the average rent of $1,540, NAR notes on its Economists’ Outlook blog.
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 13:
- 30-year fixed-rate mortgages: averaged 3.45%, with an average 0.7 points, rising from last week’s 3.22% average. Last year at this time, 30-year rates averaged 2.79%.
- 15-year fixed-rate mortgages: averaged 2.62, with an average 0.7 points, increasing from last week’s 2.43% average. A year ago, 15-year rates averaged 2.23%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.57%, with an average 0.3 points, rising from last week’s 2.41% average. A year ago, 5-year ARMs averaged 3.12%.
Freddie Mac reports average points along with commitment rates to better reflect the total upfront cost of obtaining the mortgage.
Market Observations, January 2022
Market Update, Nevada County 
| | December 2021 is a Seller’s market*
Home For Sale in December 2021: 164 units.| • | Down 26.8% compared to last month | | • | Down 16.3% compared to last year |
Home Closed in December 2021: 116 units.
| • | Down 4.9% compared to last month | | • | Down 26.6% compared to last year |
Home Placed under Contract in December 2021: 104 units.
| • | Down 23.5% compared to last month | | • | Down 10.3% compared to last year |
*Buyer’s market: more than 6 months of inventory based on closed sales
Seller’s market: less than 3 months of inventory based on closed sales
Neutral market: 3 – 6 months of inventory based on closed sales
| | December 2021 Average Sold Price per Square Footage is Neutral*
Average Sold Price per Square Footage in December 2021: $298 | • | Down 5.4% compared to last month | | • | Up 10% compared to last year |
*Based on 6 month trend – Appreciating/Depreciating/Neutral
December 2021 Average Continuous Days on Market trend Remains Steady*
Continuous Days on Market in December 2021:28 | • | Down 24.3% compared to last month | | • | Down 42.9% compared to last year |
December 2021 Sold/Original List Price Ratio is Falling*
Sold/Original List Price % in December 2021:96% | • | 0% compared to last month | | • | Down 1% compared to last year |
*Based on 6 month trend – Rising/Falling/Remains Steady
December 2021 Average For Sale Price is Appreciating*
Average For Sale Price (in thousand) in December 2021: $772
| • | Up 0.5% compared to last month | | • | Up 1.6% compared to last year |
December 2021 Average Sold Price is Depreciating*
Average Sold Price (in thousand) in December 2021:$558
| • | Down 15.2% compared to last month | | • | Down 4.5% compared to last year |
*Based on 6 month trend – Appreciating/Depreciating/Neutral
December 2021 is a Seller’s market*
Months of Inventory based on Closed Sales in December 2021: 1.4 | • | Down 21.8% compared to last month | | • | Up 16.1% compared to last year |
*Buyer’s market: more than 6 months of inventory based on closed sales
Seller’s market: less than 3 months of inventory based on closed sales
Neutral market: 3 – 6 months of inventory based on closed sales
Don’t hesitate to call The Sierra Lifestyle Team for evaluations of your home’s value or to tour homes on the market you have an interest in. We are here for you, and Alisa (almost) always answers her cell phone, 530-559-4871. |
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Real Estate
Market Observations 
Market Update Nevada County September 2021
September 2021 is a Seller’s market*
Home For Sale in September 2021: 271 units.
• Up 17.3% compared to last month
• 0% compared to last year
Home Closed in September 2021: 125 units.
• Down 10.1% compared to last month
• Down 35.9% compared to last year
Home Placed under Contract in September 2021: 145 units.
• Up 5.8% compared to last month
• Down 2% compared to last year
*Buyer’s market: more than 6 months of inventory based on closed sales
Seller’s market: less than 3 months of inventory based on closed sales
Neutral market: 3 – 6 months of inventory based on closed sales
September 2021 Average Sold Price per Square Footage is Appreciating*
Average Sold Price per Square Footage in September 2021: $309
• Up 1.3% compared to last month
• Up 17.5% compared to last year
*Based on 6 month trend – Appreciating/Depreciating/Neutral
September 2021 Average Continuous Days on Market trend Remains Steady*
Continuous Days on Market in September 2021: 28
• Up 16.7% compared to last month
• Down 48.1% compared to last year
September 2021 Sold/Original List Price Ratio is Falling*
Sold/Original List Price % in September 2021:98%
• Down 1% compared to last month
• 0% compared to last year
*Based on 6 month trend – Rising/Falling/Remains Steady
September 2021 Average For Sale Price is Depreciating*
Average For Sale Price (in thousand) in September 2021: $731
• Down 0.1% compared to last month
• Down 0.9% compared to last year
September 2021 Average Sold Price is Neutral*
Average Sold Price (in thousand) in September 2021:$627
• Up 3.6% compared to last month
• Up 9.8% compared to last year
*Based on 6 month trend – Appreciating/Depreciating/Neutral
September 2021 is a Seller’s market*
Months of Inventory based on Closed Sales in September 2021: 2.2
• Up 30.1% compared to last month
• Up 57.6% compared to last year
*Buyer’s market: more than 6 months of inventory based on closed sales
Seller’s market: less than 3 months of inventory based on closed sales
Neutral market: 3 – 6 months of inventory based on closed sales
Don’t hesitate to call The Sierra Lifestyle Team for evaluations of your home’s value or to tour homes on the market you have interest in. We are here for you, and Alisa (almost) always answers her cell phone, 530-559-4871
Real Estate
June Market Update 
Bryan Lynch
Certified Real Estate Appraiser
What a wild 2021 it has been!
I wanted to however give a quick update. It has been business as usual completing both lender and private appraisals. With private work I have been forced to stagger multiple weeks out to keep up with lender demand. While lender demand gets all the headlines, I am continuing to maintain private work demand.
Market Overview:
As far as the market goes, we all know the story. Low inventory, excess buyer demand, multiple bids above list price, waived appraisals (at times!). I imagine it’s not easy for many buyers losing offer after offer. I’ve heard some buyers deciding to take a breather and wait. Maybe that is a good idea. The one thing I know is every cycle changes. We don’t know exactly when but it does.
Lenders are increasing fees and offering rush fees. Lenders have recognized demand and are regularly quoting higher fees to appraisers. This has likely increased the assignment acceptance by an appraiser vs. unassigned orders for weeks. I will always prioritize my primary lender clients, but when solicited by other lenders, I have noticed higher fee quotes at times.
I’m always available for questions or discussion about the market. Feel free to reach out.
Bryan Lynch
Certified Real Estate Appraiser
Office: 530-878-1688
Bryanclynch@gmail.com
Roseville Office : Auburn Office
Don’t hesitate to call The Sierra Lifestyle Team for evaluations of your home’s value or to tour homes on the market you have an interest in. We are here for you, and Alisa (almost) always answers her cell phone, 530-559-4871.
Check Out the Top 10 Buyer Priorities in a House
June 17, 2021
Extra space for extended family and pets and a home office have risen to the top of wish lists among house hunters. And that desire for more space is driving many home buyers’ decision to purchase a new home in the coming year, according to a new realtor.com® survey of 1,200 home shoppers.
Also, the eagerness for greater outdoor space is prompting terms like “fenced yard,” “acres,” “backyard,” “front porch,” “garage,” and “three-car garage” to see an increase in realtor.com® searches over the past year. Since more households became pet owners during the pandemic, the term “pet friendly” has also significantly increased in searches.
“The COVID pandemic ushered in a new way of thinking about what home means, and that is influencing much of what today’s home shoppers are looking for,” says George Raitu, realtor.com®’s senior economist. “Garages, large backyards, and space for pets always rank high on buyers’ wish lists, but those features have grown in importance. The survey results highlight that the pandemic has elevated our relationship with family as well as the need for our home to serve multiple purposes, especially the ability to work remotely. As a result, we are placing a premium on the need to accommodate extended family, and features like a home office and broadband internet.”
Buyers reported that the following 10 home features have become a priority as a result of the pandemic:
- Quiet location: 28%
- Updated kitchen: 25%
- Garage: 24%
- Large backyard: 24%
- Outdoor living area: 20%
- Space for pets: 18%
- Updated bathrooms: 19%
- Home office: 17%
- Broadband internet capabilities: 17%
- Open floor plan: 16%
What Will Homes Look Like in a Post-Pandemic World?
What’s more, 65% of buyers surveyed said they were considering their extended family when they shopped for a home.
Nearly a quarter said they planned to buy near family members. One-fifth of respondents said they would have extended family living with them full-time. Thirty percent said their new home would need to accommodate extended family staying with them part-time or visiting.
On the other hand, some home items have seen a decrease in importance since the pandemic—notably the need for a short commute time.
Also, a home with smaller square footage is also in less demand since the pandemic, the survey showed.
“Remodeled” homes dropped 88% year-to-date through May. “It appears that motivated buyers are making concessions in their home search” as home prices rise, the report notes. Fewer searches are occurring for otherwise popular features such as granite countertops (down 58%), theater/media rooms (down 65%), and bars (down 52%).
Buyers may be getting more realistic heading into the housing market, knowing that they might not be able to get everything on their wish list.
When they were asked to select which features they’d be willing to sacrifice if they had to reduce their budget, the following home amenities would be among the first to go:
- Pool/spa: 24%
- Man cave: 24%
- Guest house: 23%
- Mother-in-law suite: 23%
- New construction: 22%
- Solar panels: 21%
- Finished basement: 20%
- Home office: 18%
- Large backyard: 17%
- Guest room: 17%
Source:
realtor.com®
