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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Uncategorized
Lenders Uncovering Identity Theft in Mortgage Reviews – Protect Yourself!
August 10, 2021
About 14.4 million adults are victims of identity theft each year.
But many may not even realize it until they try to qualify for lending. A financial review by a lender may be tripped up if their identity has been taken, and their homebuying dreams could quickly be taken from them.
“Identity theft is on the rise, and if you don’t pay attention, you could have a harsh awakening when applying for a mortgage to purchase a home,” cybersecurity expert Sandra Estok, author of the “Happily Ever Cyber!” book series, told realtor.com®.
Identity theft can take many forms.
Some criminals steal a Social Security number and then use it to open credit cards or loans in the person’s name. That can ruin a credit score, needed to qualify for a mortgage.
Home buyers should do advance work in ensuring their finances are up to par and have not been hacked, experts say.
“One proactive step to take before putting in an offer, or even before you consider looking at homes, is to review your credit report at annualcreditreport.com or directly with all three major bureaus—Equifax, Experian, and TransUnion,” Estok told realtor.com®. “Each of these companies maintains a separate report that can give you clues if something doesn’t add up.”
Check bank statements too. Credit card companies offer enrollment in fraud detection programs as well. Often, there is a 60-day window to report any suspicious activity in an account. After that, you may be on the hook for any amounts stolen from your accounts.
Estok also suggests visiting haveibeenpwned.com to check whether your email address or phone number has been part of a data breach. If so, change your passwords immediately.
Source:
“Could Identity Theft Keep You From Buying a House?” realtor.com® (Aug. 9, 2021)
Survey: Bidding Wars Aren’t the Big Problem Anymore
August 9, 2021
Many would-be home buyers say they aren’t having much luck in finding a home.
Sixty-six percent of buyers who were actively engaged in searching for a home in the second quarter say they’ve spent three months looking without success.
In the fourth quarter of 2020 and the first quarter of this year, active house hunters blamed being outbid by other offers as the most common reason for their inability to make a purchase.
But the top reason changed in the second quarter: More would-be buyers said that high home prices are sidelining them lately, according to The Housing Trends Report, a survey from the National Association of Home Builders.
Thirty-nine percent of active buyers surveyed said the inability to find an affordably priced home was the main reason they couldn’t buy.
Forty-three percent of surveyed buyers said if they continue to be unsuccessful, they will expand their search area while shopping for a home.
Forty-two percent will remain persistent and continue looking for the “right” home in the same location.
Overall, most long-term house hunters aren’t willing to give up. The share who are likely to put off their home search until next year or later has declined over the last two quarters, dropping to 20% in the second quarter.
Home buyers continue to search for the right home, even if it takes more than three months to finally find one in their price point.
Source:
“High Prices Are (Again) Most Common Reason Active Buyers Can’t Buy,” National Association of Home Builders’ Eye on Housing blog (Aug. 3, 2021)
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.
Real Estate, Recipes
April 2021
It will come as no surprise to market watchers, and especially buyers, that lack of inventory in Nevada County continues. We see conditions nationally mirror Nevada County. Numbers are consistent with previous months. 359 houses for sale March 2020 vs 166 houses for sale March 2021, 53.8% lower year to year. Houses sold are up 21.5%, 156 Mar last year, 123 houses sold this January.
Inventory reduction is from 2.9 months of inventory last January to 1.2 months of inventory this January, down 58,2%. A VERY, VERY STRONG SELLER’S MARKET continues, especially considering Nevada County’s attractiveness as one of the premier work-from-home communities.
The average SOLD price per square foot is up 21.9% year to year ($236 vs $293). Average price sold is up 14.6%, from $472,000 to $608,000 up 28.5%. Higher list prices continue, driven by lack of inventory.
Nevada County continues to be strongly attractive to buyers looking for safer havens, especially coupled with the myriad lifestyle opportunities and community connections the foothills offer. Days on market has fallen 24%, from 62 days last March to 54 days in March this year. Buyers are energized to immediately jump on good, well-priced houses especially given our current low inventory environment.
Buyer activity continues to be robust, with multiple offers often over ask.
Don’t hesitate to call us 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.
Hungry? Here’s some essence of Spring!
Herbed Spring Salad With Egg and Walnuts
- YIELD4 servings
- TIME20 minutes
David Malosh for The New York Times. Food Stylist: Simon Andrews.
This bright, herby, fresh-tasting salad makes a very nice accompaniment to a pan-fried breaded pork chop. Cooked beets (preferably golden) thinly sliced radishes, celery and turnips are dressed, then tossed with a mixture of zesty salad greens — use a combination of watercress, dandelion, curly endive, escarole, radicchio, mizuna, spinach, or red sorrel leaves. The components can be prepared in advance, but wait until the last minute before dressing and serving.
Featured in: A Stirring Spring Menu, Fit For A Celebration.
INGREDIENTS
FOR THE VINAIGRETTE:
- 2 tablespoons finely diced shallot
- 1 tablespoon Dijon mustard
- 1 tablespoon red wine vinegar or sherry vinegar
- 3 tablespoons lemon juice, plus more to taste
- ½ teaspoon grated garlic (from 2 small cloves)
- Kosher salt and black pepper
- ¼ cup walnut oil or extra-virgin olive oil
FOR THE SALAD:
- 6 ounces/4 cups lightly packed watercress or, preferably, a mixture of zesty salad greens
- 3 medium golden beets, cooked, peeled and cut in wedges
- ½ cup thinly sliced red radish (6 to 8 medium radishes)
- ½ cup thinly sliced turnip (or use small kohlrabi or watermelon radish)
- ½ cup thinly sliced celery heart, plus tender leaves (from the center of 1 celery head)
- Kosher salt and black pepper
- 2 tablespoons roughly chopped dill
- 2 tablespoons tarragon leaves
- 4 (7-minute) boiled eggs
- 1 cup toasted walnut halves
Nevada County, Real Estate
Nevada County Housing Market Observations 
November 2020
Lack of inventory in Nevada County continues.
Numbers are consistent with previous months, 520 houses for sale October 2019 vs 286 houses for sale October 2020, 45% lower year to year. Houses sold are up 25%, 157 Oct last year, 157 houses sold this October.
Inventory reduction is from 4.2 months of inventory last October to 1.8 months of inventory this October.
A very strong SELLER’S MARKET continues, especially considering Nevada County’s attractiveness as one of the premier work-from-home communities, and media outlets have taken notice.
Average SOLD price per square foot is up 13.7% year to year ($234 vs $266. Average price sold is up 14.6%, from $435,000 to $570,000. Higher list prices are prevailing.
Nevada County continues to be strongly attractive to buyers looking for safer havens.
Especially coupled with the myriad lifestyle opportunities and community connections the foothills offer. Days on market has fallen 48%, from 75 days last year in October to 39 days in October this year. Buyers are energized to jump on good, well-priced houses especially given our current low inventory environment.
We continue to see a slight slowing of the market in our own area, likely due to national elections coupled with the coming holidays. That said, good houses are still commanding significant attention from buyers and garnering strong offers. While prices are climbing, appraisals tend to lag the market a bit, so some circumspection in pricing is smart.
Don’t hesitate to call us 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.
Johnson’s Sierra Lifestyle Team Adds Instagram expertise to support client listings!
Social Media has many benefits, especially for businesses.
It is a tool that many people tend to overlook. Having a good social media presence is especially important as we move further and further into a world dependent on technology. Perhaps the best way to get business is by word of mouth and advertising, social media combines those. When a business posts something on social media, not only is it being spread to more people than you can reach with typical advertising, but it also creates a personal connection between the business and the consumer making them more likely to pick that business over any other. Social media can help businesses grow immensely in size, and reach new younger customers that are essential to keeping a business alive. Overall, Social Media is only a positive for businesses looking to grow, reach more customers, and to create more personal connections with customers.
The Sierra Lifestyle Team utilizes our robust Social Media skills to benefit the sale of your home, reaching thousands of qualified buyers on Facebook.
We don’t rest on our laurels…and are pleased to announce a new INSTAGRAM manager, Karissa Johnson. Karissa will head up our new Instagram program to highlight your properties to thousands of interested buyers, giving you significant new exposure to interested real estate buyers.
Brought to you by Johnson’s Sierra Lifestyle Team!
Real Estate
Nearly a Third of Home Sellers’ Top Stressor is Buying, Selling at the Same Time
Written by CRISSINDA PONDER
Edited by DEBORAH KEARNS
Published on: July 27th, 2020
For many home sellers, the most anxiety-inducing part of the home-selling process is trying to simultaneously sell their current place while buying their next dream home.
That’s according to findings from a new survey commissioned by LendingTree, which also found that sellers are planning to spend an average of more than $10,000 on repairs and upgrades to sell their home.
Key findings
The No. 1 stressor for nearly one-third (29%) of home sellers is buying and selling a home at the same time.
Another 16% of sellers report that costly repairs and upgrades are the most stressful part of selling a home, and 15% stress most about failing to sell their home.
More than 1 in 5 (22%) of home sellers have felt pressure from their agent to accept a lower-priced offer.
Another 22% felt their real estate agent pressured them to spend a significant amount of money on repairs and upgrades before selling their home. Still, 31% of sellers reported not feeling any pressure at all.
When broken down by age group, millennials (70%) were more likely to feel some sort of selling-related pressure than older generations such as Gen X (49%) or baby boomers (14%).
More than 4 in 10 (43%) strongly agree that the home-selling process is more expensive than they anticipated.
Another 43% of home sellers somewhat agree that they’re spending more than expected on their home sale. Meanwhile, more than half (51%) of millennials strongly agree with that sentiment, compared with just 28% of baby boomers.
Other takeaways
Nearly 1 in 5 (18%) millennials said the top stressor of selling a home is deciding on an asking price, compared to just 10% of Gen Xers and 6% of baby boomers.
More than 1 in 5 (21%) baby boomers are most stressed about making costly home repairs and upgrades to sell their home. Another 22% of baby boomers fear that their home won’t sell, compared with 15% of Gen Xers and 10% of millennials.
When asked how long they think their home will stay on the market before it’s sold, more than 4 in 10 (44%) sellers said one to three months. More than 1 in 4 (27%) think it will take four to five months to sell their home.
Home sellers expect to spend more than $10,000 on average for repairs and upgrades in order to sell their home. Millennial sellers anticipate spending $13,727 on average, which is the highest amount of all age groups.
After removing decorations and decluttering, the top three repairs and upgrades home sellers have made are:
- Fresh interior paint (48%)
- Bathroom upgrades (45%)
- New kitchen appliances (45%)
4 factors to consider when selling your home
The cost to sell a home can reach more than $20,000, depending on your home’s sales price. Keep the following factors in mind as you prep for a home sale:
- Be mindful of your timeline. If you’re buying a home while selling your current one, it’s important to bake in enough time to find your new home. The average time close on a home purchase is 47 days, according to Ellie Mae’s June Origination Insight Report.
- Get a home inspection. Before you list your home for sale, pay for a home inspection to identify issues with your home’s condition that may need to be addressed right away. If the buyers discover the issue during their inspection, negotiating repairs could postpone or derail the sale.
- Negotiate your selling costs. You’ll have to pay several closing costs, including commissions for both your and the buyer’s real estate agent. It’s in your best interest to negotiate these fees, as they can cost several thousand dollars.
- Reduce your mortgage debt. Your mortgage will need to be paid off first before you receive any sales proceeds. In the months before you begin the home-selling process, consider dedicating any bonuses, refunds or windfalls to paying down your outstanding loan balance.
Methodology
For this survey, LendingTree commissioned Qualtrics, an experience management firm, to gather responses from 964 home sellers, with the sample base proportioned to represent the overall population. The survey was conducted April 24-30, 2020.
Generations were defined by the following age ranges:
- Millennials are ages 24-39
- Generation X are ages 40-54
- Baby boomers are ages 55-74
Our survey also included responses from members of Generation Z (ages 18-23) and the silent generation (ages 75 and older). Their responses were factored into the overall percentages but excluded from the generational breakdowns, due to the low sample size among both age groups.
Sierra Lifestyle Team Note: A good Real Estate Team on your side is essential to reducing your stressors as you prepare to sell your house and go through the process. Your agent(s) should be prepared to discuss their value proposition to assist you in selling your home, maximize your offer price, and minimize the time frame for selling.
