Nevada County real estate market on upswing
August 22, 2013
Nevada County's once-battered home prices continue to rise alongside a statewide housing recovery where sales hit an eight-year high for July, according to real estate groups.
"We're having a really good summer," said Kathleen Hinman, a Nevada County Association of Realtors executive.
More homes sold in Nevada County in July than a year earlier, up to 139 from 111 in 2012, and those homes were on the market for an average of 70 days.
"We're having an active market place for our agents," Hinman said. "And they'd like to see more inventory."
“We’re starting to see multiple offers because the inventory is down. Supply and demand is going to push the market upwards.”
Nevada County Association of Realtors executive
The median price for a home sold in July in Nevada County was $295,000, up 41 percent from a year ago, according to figures from the Nevada County Association of Realtors. The average price of $253,933 was up nearly 14 percent from the same month in 2012.
"We're starting to see multiple offers because the inventory is down," Hinman said. "Supply and demand is going to push the market upwards."
Statewide, the median sales price for a California home was $363,000 in July, according San Diego-based DataQuick, a real estate research firm. The median price has now increased year over year for 17 months in a row.
A total of 48,118 new and used homes and condos sold statewide during the month — the highest figure for a July since 2005 — and sales were up more than 17 percent from June and nearly 22 percent from a year ago, according to DataQuick.
Lake-front property is especially hot in Nevada County, Hinman said, with home prices in Lake of the Pines, Lake Wildwood and Rollins and Scotts Flat lakes all on the rise, Hinman said.
"There a quite a few buyers come up to buy lake-front prop right now," Hinman said.
The increase in sales indicates pent-up demand has found an increased supply of homes.
Rising prices mean fewer homeowners owe more than their home is worth, and they can now sell without losing money, said Stuart Gabriel, director of UCLA's Ziman Center for Real Estate. Higher prices are also drawing developers back into the market.
The combination will likely mean the rapidly increasing prices of the past year will begin to moderate, Gabriel said. Historically low interest rates are also rising slowly, which should contribute to a more normal market, he added.
"We're not saying that price increases are going to stop. They're just going to move more moderately," he said.
The Associated Press' Gillian Flaccus contributed to this report. To contact Staff Writer Christopher Rosacker, email firstname.lastname@example.org or call 530-477-4236.