Brian Hamilton: Growing inventory amid slowing sales market
For those who are active on the market, buyers and sellers both know home sales in western Nevada County aren’t as they were a year ago.
But, for that matter, one would be hard-pressed to find any recent year that compares with the high-volume sales seen in 2021.
By year’s end, what had been a red-hot, record-setting market began to cool off, yet area agents still nearly matched a first half that saw 873 homes sell, with another 866 in the second half for a whopping 1,739 sold units.
According to Multiple Listing Services statistics, 2021 saw the most homes sold in western Nevada County since 2004, when 1,987 home sales were recorded.
Now through the first half of 2022, the local market has seen 8.6% fewer homes sold than in 2021. There were 797 units sold in the first six months, down from 873 in 2021 but still ahead of 2020 (622) and 2019 (686) in sales.
But whether the second half will track year-over-year performance in similar fashion remains to be seen, as home buyers see an increased inventory to choose from while formulating their purchasing power against rising mortgage rates and high price tags.
With 459 homes on the market at the end of June, western county had the most homes for sale in any single month since October 2019. Once the pandemic pace kicked into gear in the second half of 2020 — which saw an astounding 1,049 homes sell in six months — inventory had struggled to keep up with surging demand.
In fact, there were 105% more homes for sale in western Nevada County last month than the 223 listed in June 2021. A five-year view of the market shows both 2018 (503 active listings) and 2019 (611) had more listings than the 459 on the market last month.
Alongside that growing inventory is an increasing number of price reductions on the MLS, yet last month’s median price of a home sold in western county actually increased over the previous month. The median price of a home sold locally last month was $579,000, a 4.7% increase over May but down from a record high of $592,000 in April.
To put those prices into perspective, the median price of a home sold in June 2020, just two short years and one pandemic-fueled frenzy ago, stood at $427,750. That means the median price of $579,000 in June reflects a 35.3% increase over one sold the same month two years ago.
SLOWED, STEADY SALES
With inventory growing, if not demand, buyers are likely regaining position in negotiations and likely are seeing less competition for the home they seek to buy.
Though overall sales figures have remained steady, the 161 pending sales were 17% down from May. Over the prior three months pending sales pushed above 190 for March (195), April (192) and May (194).
In comparison, there were 223 sales pending in June 2021, as well as 205 in May and 214 in April last year, offering perspective on pace of sales.
A wider view also shows where the hot-market sales of 2020-2021, about an 18-month stretch of surging sales, fits in comparison to the most-productive sales year in recent history. The 1,739 homes sold in 2021 were the most since 2004, but it ranks just fourth overall, according to MLS statistics. And 2020, which includes the 1,049 homes sold in the second six months of the year, ranks sixth.
Four of the top five sales years were in the early 2000s, MLS stats show, with 2004 topping the list at 1,987 followed by 2005 (1,794), 2003 (1,753) and the year 2000 (1,685) ranking fifth in total sales.
Brian Hamilton is a Realtor (Lic.# 02149112) and assistant to the regional manager for the Betsy Hamilton Real Estate Team (Lic.# 01936209) at RE/MAX Gold (Lic#: 01949144) in Grass Valley. For more information, contact him at Brian@BetsyHamilton.com or visit http://www.BetsyHamilton.com
June home sales in western Nevada County:
$579,000 — Median price (2022)
$526,250 — Median price (2021)
15 – Days on market (2022)
9 – Days on market (2021)
156 – Homes sold (2022)
162 – Homes sold (2021)
459 – Homes for sale (2022)
223 – Homes for sale (2021)
The nine-cottage Piety Hill Inn has a history dating back to 1931.
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