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As we look at a snapshot of what is happening in our local real estate marketplace, it is quickly apparent that things are looking up. Since 2006, most residents in the Greater Nevada County area can attest to the fact that real estate has been slowly inching upward in terms of positive change.
Today,
we are looking at very impressive improvements in all areas of our local real
estate market. Here is a look at three important factors that help determine
the health of a real estate market and a review of how Nevada County fared in
December 2012 with respect to each.
Average
Sales Prices Begin to Climb After Nearly Seven Years
For
the first time since 2006, what many would call the height of the real estate
boom, we are seeing increasing average sale prices. With about 2.5% higher
sales prices than the same time last year, our market is trending upward in
this area. This appreciation brings the average sales price to just under
$250,000.
A
Significant Increase In the Number of Homes Sold
Once
again, we are reporting an impressive increase in the number of homes sold. In
fact, when comparing sales volumes from 2006, there were 200 more properties
sold in 2012 comparatively. The 17% increase indicates a steadily rising
marketplace in terms of homes sold in Nevada County.
Inventory
Levels Have Dropped Dramatically
A
strong indication of market health is the number of homes available for sale.
We examine the absorption rate of properties on the market to determine whether
it is primarily a sellers’ market or a buyers’ market. Just two short years ago
we had a 12 months’ supply of homes, which translates heavily to a buyers’
market. Today, our absorption rate points to just 3 months of supply – meaning
that sellers are able to sell their homes reasonably quickly.
~
Considering
these factors plus the fact that interest rates continue to hover at historic
lows, we are experiencing the unique situation of it being a favorable market
for both buyers and sellers. Thriving for the first time in seven years, the Nevada
County real estate market promises to have plenty of bustling activity in the
coming months and year.
If
you would like a customized consultation to discuss your home buying, selling
or investing needs – I welcome you to contact me at 530 273 0073 or via email
at kurt@kurtcongdon.com. I look forward to
hearing from you!
