Brian Hamilton: What’s going on with this market?
Are things slowing down?
When’s the correction coming?
There IS a correction coming … right?
Heading into the backstretch of second quarter home sales in western Nevada County, those with their eyes on the market are regularly being asked the same questions.
If you’ve been following along at home over the past several months, you know market prices have been pushing higher largely due to a high demand for, but low inventory of, homes listed for sale.
Over the course of 2021’s first five months, despite a slight uptick of inventory, the median price of homes sold remains on the rise, or at least holding steady.
But it’s the year-over-year comparison that has everyone shaking their heads in disbelief and wonder.
May’s median sale price was $549,000 — 34% higher than the $410,000 median of May 2020 — following April 2021’s $550,000 median. Among all sales in 2020, the median price was $455,000.
So far, 2021’s median price of homes sold works out to $528,000, up 24% over $427,000 in the first five months of 2020.
Since February’s low of 159 homes listed for sale, there have been more options for buyers to consider over the past three months, with 214 homes listed in April and 205 in May.
But those numbers still reflect a drastic drop of homes typically on the market this time of year.
THESE ARE THE DAYS
The effect of the low supply and high demand is also evident in average days on market, a statistic slimmed down to a single digit for the second straight month. It took an average of eight days to have an accepted offer between buyer and seller in May. That’s actually one day fewer than April’s nine-day average, which followed a 14-day average stay on the market in March.
A more typical timetable in western county is the 54 days on market average in the month of May in each of the past five years, including the 45 days averaged in May 2020.
STEADY AS WE GO?
With the slight uptick in homes available over the past few months, more homes are being sold since the start of the year, and actually keeping pace with the last half of 2020, one of the most productive six months in western county sales in recent memory.
Between 2016-2019, there were an average 121 homes sold on a monthly basis. With sales surging amid the pandemic, that number shot up to an average of 175 homes sold monthly over the final six months of last year, bringing an average of 145 homes sold per month in 2020.
So far, even with such a smaller inventory available, western Nevada County has seen an average of 138 homes sold monthly in 2021, with April (172 homes sold) and May (162) — actually keeping stride with 2020’s striking second-half surge in sales.
Brian Hamilton is the assistant to the regional manager for the Betsy Hamilton Real Estate Team. Contact Betsy Hamilton at email@example.com or 530-263-9044. Visit MidLifeOfBrian.com for previously published market updates. Contact Brian Hamilton at BrianHamiltonRE@gmail.com
BY THE NUMBERS
May sales in western Nevada County:
$549,000 – Median price (2021)
$410,000 – Median price (2020)
8 – Days on market (2021)
45 – Days on market (2020)
162 – Homes sold (2021)
134 – Homes sold (2020)
205 – Homes for sale (2021)
356 – Homes for sale (2020)
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