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Brian Hamilton: Real estate market smoking hot ahead of summer months

Nine days.

That’s how long it took, on average, for a home to sell last month here in western county, according to data compiled by the Nevada County Association of Realtors.

Nine days.



Continuing on the clear trend established throughout the first quarter of sales, western Nevada County’s market is still scorching hot. That single digit for April sales brings the average days on market for all of 2021, so far, to 15 days.

But ask any area real estate agent and they’re likely to share stories of sellers having an accepted offer even earlier, with multiple buyers making a bid above asking price in just mere hours after hitting the market.



HOW HOT?

With 214 homes listed for sale in April, there were 172 homes sold.

It was the most homes sold in a single month since September 2020, when 188 transactions closed. That was one of six months that saw sales surpass 150 units sold.

April 2020, though, was not one of them.

A year ago at this time, there were 396 homes on the market and 80 sold.

But April 2020, as you remember, was likely the month that saw home sales struggle the most due to the first shelter-in-place orders in response to COVID-19.

What’s more typical for this time of year?

In April 2019, there were 476 homes on the market with 120 units selling. One year earlier, April 2018 closed out with 112 homes sold and 390 active listings. And a quick look at the stats from all the way back to 2017 show a total of 113 homes sold and 298 active on the market.

Clearly, the 172 homes sold last month were easily the most homes sold in the month of April over the past five years. But the number also represents, outside of the sizzling sales of pandemic-driven 2020, the most homes sold in any single month over the past five years in western Nevada County.

In fact, prior to 2020, monthly home sales topped 150 units just three times since January 2017.

Smoking hot, indeed.

Graph courtesy Brian Hamilton

HOW HIGH?

Although the 214 homes listed for sale reflects a slight uptick in inventory — surpassing the 200 threshold for the first time since 283 homes were on the market in November 2020 — it still reflects an extremely low supply of homes to buy in western county.

Not only is April inventory typically more substantial, as mentioned above, but until July 2020 — with 295 homes for sale — western Nevada County’s market hadn’t dipped below 300 units on the market since February of 2018 (which totaled 286 units). There were 431 homes on the market in May 2020, before supply started spiraling downward.

In fact, not once in 2019 did Nevada County have fewer than 300 homes for sale. For sake of comparison, three consecutive summer months saw more than 600 homes for sale, including the highest number of homes on the market in July 2019 at 647 homes.

That more typical supply and demand scenario had the average sold price at $492,000 for the 136 homes sold.

In April 2019, with 476 homes on the market and 120 units sold, the average sale price was $443,000.

One year later, amid the pandemic shutdown, with 396 homes on the market and a mere 80 selling, the sale price stood at $459,000.

Last month, with 214 homes listed and 172 homes selling, the median sold price was pushed to $550,000.

That was up from $525,000 in March 2021 and, as stated, nearly $100,000 higher in a year-over-year comparison with the median sale price of April 2020.

Brian Hamilton is the assistant to the regional manager for the Betsy Hamilton Real Estate Team. Contact Betsy Hamilton at realestatebetsy@gmail.com or 530-263-9044. Visit MidLifeOfBrian.com for previously published market updates. Contact Brian Hamilton at BrianHamiltonRE@gmail.com.


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