For the housing market in Nevada County, 2016 was a good year. While inventory was relatively tight all around, home values at the end of the year were higher by almost 4% compared to the 4th quarter of 2015.
Here’s a look at where we ended for 2016, and what we expect to come for this New Year.
Home Values are Appreciating
In April of 2016 the average sold price for single family homes in Nevada County rose to its highest in two years, capping out at $410,000. It’s true that spring can be a great time for sellers to list due to the usual upswing of average sold prices. If we compare the average sold price in December 2016 vs December 2014, we see a 7% increase. This is a great indicator that home values are continuing to appreciate. Many homeowners in Nevada County (and especially Nevada City) have more equity in their home than they realize.
Inventory Is Still Very Low
The number of homes for sale in Nevada County for 2016 were minimal. While California was dealing with a shortage of water, real estate agents in Nevada County were managing with a drought of their own. December 2016 found Nevada County’s inventory 12% lower than December 2015. Comparing pending sales during those same years, however, showed a 23% increase. Less homes on the market + more homes being sold… Needless to say, this is a smart time for sellers to market their properties.
Days on the Market
Despite the increase of the average list and sold price, homes moved quickly in 2016. The average listing stayed on the market for 41 days in December last year, compared to 72 days in December 2015. Buyer demand was high, and homes that were priced correctly were scooped up.
What’s in store for 2017?
According to the CAR 2017 Housing Market Forecast, the California median home price is expected to increase 4.3 percent to $525,600 in 2017. I believe Nevada County is going to follow the market trends exhibited by the rest of the state. Home prices will continue to rise as home values appreciate. Unfortunately, I expect inventory to stay consistently low throughout the year (though you could surprise me yet, sellers).
If ever you’ve considered selling, call me. Let’s find out what your home is worth in today’s market and come up with a plan to efficiently market your home to prospective buyers. For more information on the current real estate market, contact me!