Real Estate
Market Observations
September 2020
Lack of inventory in Nevada County continues to be a feature of the current real estate market.
The numbers are nearly identical to previous months. 641 houses for sale August 2019 vs 265 houses for sale August 2020. That’s a reduction from 4.6 months of inventory to 1.3 months of inventory. A 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 6% year to year ($233 vs $239). Average price sold is up 13.4%, from $463,000 to $524,000. 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.
We are seeing multiple offers for good listings here, with a number of houses going for over asking prices. If you are contemplating selling a property, we have rarely seen a better time!
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 always answers her cell phone, 530-559-4871.
ON SOCIAL MEDIA
by Karissa Johnson
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!
Sellers Are Calling the Shots, But for How Much Longer?
September 11, 2020
The housing market continues to outperform historical standards as prices accelerate to new highs and homes sell faster, according to realtor.com®’s latest Weekly Recovery Report.
“Sellers are calling the shots in today’s market,” says Danielle Hale, realtor.com®’s chief economist. “Prices are rising and housing inventory is vanishing almost as fast as it appears.”
However, Hale points to two housing indicators that may hint at a turn in the market.
Housing demand from buyers has cooled slightly, while new listings showed a smaller decline than previous weeks, Hale says. “This could be a hiccup in weekly activity, or, if these trends continue, they could signal a shift in market dynamics leading into the fall when political, economic, and health-related uncertainties abound,” she says.
Realtor.com®’s Housing Market Index reached a reading of 107.7 for the week ending Sept. 5. That’s 7.7 points higher than its pre-COVID-19 baseline in January. Buyer demand dropped 3.3 points since last week, and inventory showed improvement, rising 3.2 points higher—though it still remains below its pre-COVID-19 baseline.
Meanwhile, home prices continue to escalate.
Median listing prices are up 10.8% annually, which is the fastest pace of growth in more than two years, realtor.com® reports. Time on the market is now 12 fewer days than a year ago. “Buyers are moving much faster than this time last year to beat out competition and lock in low mortgage rates,” realtor.com® reports. “This means homes are sitting on the market for much less time, despite notably higher price tags.”
Nevada County, Real Estate
Market Observations
August 2020
Lack of inventory in Nevada County continues to be a feature of the current real estate market.
621 houses for sale July 2019 vs 297 houses for sale July 2020, a significant 52.6% decline. That’s a reduction from 4.3 months of inventory to 1.3 months of inventory, a very strong SELLER’S MARKET.
THE average SOLD price per square foot is up 6.7% year to year ($255 vs $239). Average price sold is up 13.4%, from $493,000 to $559,000. Higher list prices are prevailing.
Units PENDING are up 86.3%. While Nevada County has long been a magnet for buyers from the SF Bay Area, and to a lesser extent, the Los Angeles region, we believe the relative safety of our area continues to drive interest and sales. The pending numbers support that.
If you are contemplating selling a property, we have rarely seen a better time!
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 always answers her cell phone, 530-559-4871.
Fed ‘Not Even Thinking’ About Raising Rates, Real Estate on the Rebound
By Liz Dominguez
The Federal Open Market Committee (FOMC) met this week, leaving interest rates near zero to help buoy an economy heavily hit by the current health crisis.
“The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in keeping the virus in check,” Fed Chair Jerome H. Powell said in a statement, adding that the “pace of recovery looks like it has slowed,” as more states continue to battle a second wave of increasing coronavirus cases.
The Fed will continue to monitor the markets but, as of now, is not “even thinking about” raising rates and will keep rates low “until it is confident that the economy has weathered recent events.”
Recent data shows just how much the coronavirus pandemic has impacted the economy. According to the Commerce Department, the U.S. GDP (gross domestic product) fell 9.5 percent in the second quarter of the year—on an annualized basis, GDP fell at a rate of 32.9 percent.
“As expected, economic activity collapsed in the second quarter due to the total virus-lockdown in April and only partial re-openings in May. The GDP contraction of 33 percent on an annualized basis is the steepest ever experienced in the U.S.,” said Dr. Lawrence Yun, chief economist, National Association of REALTORS® (NAR). “Even with the stimulus and enhanced unemployment benefits, consumer spending collapsed by a massive 35 percent. Business spending also collapsed by 27 percent. Even residential investments—comprising of home sales, home building and remodeling activity—dropped by nearly 40 percent.
“This morning’s advance report on second quarter GDP showed that the economy contracted 32.9 percent—the largest single quarter drop on record—as COVID-19-driven business closures and restrictions on in-person activity sharply reduced consumer spending and business investment,” said Joel Kan, AVP of Economic and Industry Forecasting, Mortgage Bankers Association (MBA). “In recent weeks, housing demand has rebounded sharply, and we expect the rest of the economy to recover in the second half of the year.
Third quarter data should be more optimistic as states began reopening amid a decline in COVID cases.
“The good news is that this data is backward-looking. Third quarter data will show a massive increase. Personal savings rates are the highest ever, with massive deposits at banks,” said Yun. “There will be an unleashing of spending in the upcoming months as economies open further. Home sales have already been rising strongly and will continue to do so. GDP growth in the third quarter could be as high as 30 percent. Note: This data will come out three days before the November election.”
However, with the last few weeks showing deterioration across various states, the economic rebound could slow. Unemployment filings totaled 1.43 million last week, according to the Labor Department—the second weekly increase.
“The adverse impacts to the job market and hardships for many households may persist—especially if virus cases continue to rise in several parts of the country,” said Kan. “There are still many workers who have not returned to work, households in need of mortgage or rent forbearance, and an overall sense of uncertainty ahead. We expect the Federal Reserve to keep rates low, and monetary policy supportive, until there are clearer signs of an economic recovery.”
An upside to the Fed’s near-zero lock-in? Fed rates can indirectly influence mortgage interest rates, which just decreased slightly according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®).
“It’s Groundhog Day in the mortgage market as rates continue to remain near historic lows, driving purchase demand over 20 percent above a year ago,” said Sam Khater, Freddie Mac’s chief economist. “Real estate is one of the bright spots in the economy, with strong demand and modest slowdown in home prices heading into the late summer. Home sales should remain strong the next few months into the early fall.”
Here’s the breakdown:
– 30-Year Fixed-Rate Mortgage: Averaged 2.99 percent with an average 0.8 point for the week ending July 30, 2020, down slightly from 3.01 percent. A year ago at this time, the 30-year FRM averaged 3.75 percent.
– 15-Year Fixed-Rate Mortgage: Averaged 2.51 percent with an average 0.7 point, down from last week when it averaged 2.54 percent. A year ago at this time, the 15-year FRM averaged 3.20 percent.
– 5-Year Treasury-Indexed Hybrid Adjustable-Rate Mortgage (ARM): Averaged 2.94 percent with an average 0.4 point, down from last week when it averaged 3.09 percent. A year ago at this time, the 5-year ARM averaged 3.46 percent.
“We expect that the Fed may strengthen their forward guidance on the future path of interest rates at their September meeting, providing more explicit signals as to which factors could lead them to eventually raise short-term rates,” said Mike Fratantoni, SVP and chief economist of MBA. “In the meantime, we expect mortgage rates will stay near all-time lows. These record-low mortgage rates will continue to provide stimulus to homeowners who refinance and lower their monthly payments, while also boosting homebuyer demand and their purchasing power.”
Liz Dominguez is RISMedia’s senior online editor.
Important News and Info, Lifestyle, Real Estate, Uncategorized
It’s getting HOT in the neighborhood!…and we’re not talking about the weather!
The Real Estate Market is lighting up locally!
There is an extreme buzz happening throughout our local area in our neighborhoods. From the Alta Sierra community in Grass Valley Nevada County to the new north Auburn devlopements in Placer County there is a need for inventory. Witnessing the real estate market first hand from hosting open houses and chit chatting with friends more than half of everyone I know and meet are needing a home to purchase. As properties come up for sale there is a mass interest even before it hits the market. Then very shortly of going live on the market the property has gone pending with a handful of qualified motivated buyers still searching.
If you have recently been on the fence about listing your house let me shine a little light on what my Real Estate team is experiencing and seeing first hand. Many sellers are hesitant or reluctant to put their house on the market for various reasons, most of which can be resolved. There may be a large and expensive repair or upgrade that is daunting and could hinder the sale of their house. Pricing the house slightly below market value or have a credit value set can easily attract buyers and also let them know that you are willing to get the ball rolling and get the house sold.
We are working with many buyers looking to get into Placer County and Nevada County and when the properties are pending rather quickly, many are still left searching. Qualified and ready to buy, many eager to settle in before the summers end. If you’ve had thoughts or reservations about selling, call us today! All transactions are circumstancial as all of our lives are different in their own way. We look forward to hearing from you and can’t wait to serve you.
