The real estate market in 2021 has been a wild one! If you've been seeing “For Sale” signs in your neighborhood, they probably don’t last long. Overall, the median combined days on market (CDOM) for all residential sales in Jan - July in 2021 was 12 days. Over 67% of sales were on the market for less than a month. If you have been in the market for a home, you know just how fast homes are selling.
What about Prices?
Overall, median prices have continued to rise. This has been the trend of the past couple of years. Nevada County hasn’t seen a decline in median prices in almost a decade.
Median prices fluctuate from month to month, but an analysis of the last two years of median prices for residential properties in Nevada County shows a 2% per month increase in prices. Historically, this is a high rate of change. Over the past 3 months, prices have slowed down slightly, increasing at a rate of “only” 1.5%.
July 2020 vs July 2021
Comparing statistics from July 2020 to July 2021 shows price trends are similar, with the median price increasing 15%. While the number of sales was about the same, the amount of time a home was listed on the market (CDOM) was down 57%. The market was also very competitive. Multiple offers were very common with 41% having more than one offer. The amount of multiple offer sales increased 15% when compared with July 2020. Two sales in 2021 had 14 offers, per MetroList MLS. They sold for 12% and 13% over the list price and sold in 8 days or less. Local real estate agents are working hard for their clients!
May 2021 - July 2021
Over the past three months, median prices have continued to rise, but not quite as quickly as in previous months. This is pretty typical for this time of the year. The number of sales continues to rise, and marketing times are slightly up. Multiple-offer scenarios are slightly down, but still very common in this market.
Appraisals
Freddie Mac put out this graph last month and it shows just how busy life is for appraisers. The amount of appraisers in the industry who regularly complete appraisals for lender work has remained fairly consistent since 2014. Loan volume for purchase appraisers is consistently cyclical but has slowly increased since 2013. The loan volume for refinancing appraisals has absolutely skyrocketed. This is directly correlated to low mortgage interest rates. Fixed-rate 30-year mortgage rates are approximately 2.95% right now. Most appraisers I talk to are booked out for 4-5 weeks with appraisal orders.
Final Thoughts
Average and median prices continue to rise for the entire market of western Nevada County. Each sub-market is different, so it’s always best to consult your local real estate professional for an analysis applicable to a specific property. The supply of homes on the market continues to be drastically low, with homes selling very quickly. Multiple-offer scenarios are extremely common in this competitive market. Statistics have slightly slowed in the past three months which is common for this time of year. I’ll be closely monitoring these metrics to determine if there is a change in market condition.
I was on my way to an appraisal inspection in Nevada County when the River Fire broke out along the Bear River. Immediately after seeing the smoke plume, I called the homeowner only to find out the Nevada County Sheriff had just come by notifying them of the evacuation orders. Thankfully, their home was not destroyed. That wasn’t the case for 102 homes with several additional structures damaged. The Nevada County Relief Fund continues to solicit donations for the River Fire Relief Fund. Click Here to Donate.
