Site search
sponsored by
News
Sports
Real estate agents are busier than they have been in months, as a weak housing market shows signs of a beating pulse — and buyers take advantage of bargains in foreclosures and short sales.
First-time homebuyers and investors are contacting agents, inquiring about properties and making offers, said Cindy Cara, manager of Network Real Estate.
In some cases, people are buying houses with cash, she added.
“There is no question that sales activity is on the upswing,” said Kathy Hinman, associate executive of the Nevada County Association of Realtors.
So far this month, agents have closed 72 residential sales in Nevada County through June 29, compared to 57 the year before in the same period. That's also up from May, when 65 homes sold the entire month, Hinman said.
In 2009 from Jan. 1 to June 29, some 349 residences (mobiles, single-family houses and condominiums) sold in the county, compared to 352 sold during the same period last year. The numbers do not reflect sales by owner.
Activity in the market is accelerating, with another 180 home sales pending, Hinman said.
Much of the coming activity is with buyers taking advantage of bargains: 65 of pending sales are foreclosures and short sales, Hinman added. That compares to 21 foreclosure sales and short sales among the sales closed so far in June.
“We're just hitting the summer months,” Hinman said.
With historically low mortgage rates, affordable home prices and federal and state incentives for first-time homebuyers, more people are realizing now is the time to put aside recession fears and take advantage of the alignment.
“In a sense, it's a market we haven't seen in 50 years,” Cara said.
Cara has sold real estate since 1979 and over the years rode many undulating housing market cycles. The most recent downturn is the worst she ever had to pull through.
“I think it really is beginning to thaw,” she said.
While good news for buyers, sellers aren't making much profit on sales. Many desperate sellers have had homes listed on the market for years.
“I just had one close that's been on the market for two years” after price reductions, said Pam Auld of Network Real Estate.
Year-to-date residential home prices in Nevada County average $317,000 compared to $394,000 a year ago, according to multiple listing service data provided by the Nevada County Association of Realtors.
That's higher than the state average, which stood at $267,570 in May, a 30.4 percent decline from the year before, according to a report from the California Association of Realtors.
“What's really been selling is below $300,000,” said Cara. Million-dollar homes and homes priced between $600,000 and $700,000 are beginning to move again, she added.
“Previously, that was really at a stand-still,” she said.
Sellers competing against a growing number of foreclosures and short sales have watched the value of their homes plummet. Some higher-end homes once priced at $899,000 fell to $699,000, Cara said.
“(Foreclosures) really changed the market,” she said.
Property owners who bought at the peak of the market several years ago are going to the Nevada County Assessor's office in droves asking to have the value of their homes re-assessed, lowering their annual property taxes.
This year, the county lowered assessed values on 4,700 residential parcels, according to Assessor Dale Flippin.
The properties will return to their original value when the market returns, he stated on his Web site.
Considered a destination or retirement community, Nevada County was spared the pain of massive neighborhood foreclosures other areas of the state witnessed.
Some commercial properties are starting to go to foreclosure, too, Hinman said.
Foreclosures and short sales can be risky because banks are not required to disclose everything. Buyers should investigate them thoroughly before making an offer.
While sale prices have dropped, the number of sales statewide rose by 35.2 percent in May compared to the same time a year ago, the California Association of Realtors reported.
Also in May, 30-year fixed mortgage interest rates averaged 4.86 percent compared with 6.04 percent in May 2008, according to Freddie Mac. Adjustable mortgage interest rates averaged 4.75 percent in May 2009 compared to 5.24 percent the year before.
To contact Staff Writer Laura Brown, e-mail lbrown@theunion.com or call 477-4231.
First-time homebuyers and investors are contacting agents, inquiring about properties and making offers, said Cindy Cara, manager of Network Real Estate.
In some cases, people are buying houses with cash, she added.
“There is no question that sales activity is on the upswing,” said Kathy Hinman, associate executive of the Nevada County Association of Realtors.
So far this month, agents have closed 72 residential sales in Nevada County through June 29, compared to 57 the year before in the same period. That's also up from May, when 65 homes sold the entire month, Hinman said.
In 2009 from Jan. 1 to June 29, some 349 residences (mobiles, single-family houses and condominiums) sold in the county, compared to 352 sold during the same period last year. The numbers do not reflect sales by owner.
Activity in the market is accelerating, with another 180 home sales pending, Hinman said.
Much of the coming activity is with buyers taking advantage of bargains: 65 of pending sales are foreclosures and short sales, Hinman added. That compares to 21 foreclosure sales and short sales among the sales closed so far in June.
“We're just hitting the summer months,” Hinman said.
With historically low mortgage rates, affordable home prices and federal and state incentives for first-time homebuyers, more people are realizing now is the time to put aside recession fears and take advantage of the alignment.
“In a sense, it's a market we haven't seen in 50 years,” Cara said.
Cara has sold real estate since 1979 and over the years rode many undulating housing market cycles. The most recent downturn is the worst she ever had to pull through.
“I think it really is beginning to thaw,” she said.
While good news for buyers, sellers aren't making much profit on sales. Many desperate sellers have had homes listed on the market for years.
“I just had one close that's been on the market for two years” after price reductions, said Pam Auld of Network Real Estate.
Year-to-date residential home prices in Nevada County average $317,000 compared to $394,000 a year ago, according to multiple listing service data provided by the Nevada County Association of Realtors.
That's higher than the state average, which stood at $267,570 in May, a 30.4 percent decline from the year before, according to a report from the California Association of Realtors.
“What's really been selling is below $300,000,” said Cara. Million-dollar homes and homes priced between $600,000 and $700,000 are beginning to move again, she added.
“Previously, that was really at a stand-still,” she said.
Sellers competing against a growing number of foreclosures and short sales have watched the value of their homes plummet. Some higher-end homes once priced at $899,000 fell to $699,000, Cara said.
“(Foreclosures) really changed the market,” she said.
Property owners who bought at the peak of the market several years ago are going to the Nevada County Assessor's office in droves asking to have the value of their homes re-assessed, lowering their annual property taxes.
This year, the county lowered assessed values on 4,700 residential parcels, according to Assessor Dale Flippin.
The properties will return to their original value when the market returns, he stated on his Web site.
Considered a destination or retirement community, Nevada County was spared the pain of massive neighborhood foreclosures other areas of the state witnessed.
Some commercial properties are starting to go to foreclosure, too, Hinman said.
Foreclosures and short sales can be risky because banks are not required to disclose everything. Buyers should investigate them thoroughly before making an offer.
While sale prices have dropped, the number of sales statewide rose by 35.2 percent in May compared to the same time a year ago, the California Association of Realtors reported.
Also in May, 30-year fixed mortgage interest rates averaged 4.86 percent compared with 6.04 percent in May 2008, according to Freddie Mac. Adjustable mortgage interest rates averaged 4.75 percent in May 2009 compared to 5.24 percent the year before.
To contact Staff Writer Laura Brown, e-mail lbrown@theunion.com or call 477-4231.
