For the first time in nearly two years the median price of a home sold in western Nevada County fell below a half million dollars, according to Multiple Listing Service statistics.
December’s median sale price of $499,000 was the first time since February 2021 that low of a number was produced by total sales in a month’s time. In fact, since the COVID-19 pandemic fueled a frenzied market of high-volume and high-dollar sales, December’s median price was just the second recorded in the past 25 months under $500,000.
Along with price reductions, a cooling market is also evident in total sales volume. A total of 1,481 homes were sold in 2022, according to the MLS, down 15% from 2021’s 1,747 homes sold, the highest number of sales over the past five years.
In 2020, when a summer sales frenzy spiked beyond 200 homes sold in both June and July, a total of 1,671 homes were sold, or 12.8% more than the current year.
Looking back to pre-pandemic sales norms, 2018 saw 1,460 homes sold and 1,340 in 2019. That puts 2022 squarely in the middle of the pack of the past five years in home sales volume.
But a closer look into monthly sales shows not only have current sales slowed in comparison to the past two years, the past three months were particularly at a more plodding pace.
Fourth-quarter home sales in 2022 were not only down 40.5% in comparison to 2020, and 31.6% off from 2021’s final quarter, but also marked the fewest homes sold in the fourth quarter of any of the past five years.
BUYER’S MARKET?
Although the lower median sale price points to better price points for buyers, rising interest rates continue to make borrowing money more expensive than in recent years.
Buyers might not qualify for the same level of financing as they did just six months ago, meaning a loss of buying power and fewer homes to choose from in an already lagging local inventory.
In the two years prior to the pandemic, western Nevada County homebuyers would see an average of 463 homes for sale each month. In the last three years, there has been a monthly average of 292 homes on the market.
Of the past five years, the lowest volume of homes for sale in a single year was 2021, when an average of 220 homes were listed.
In 2022, the average was 330.
December’s 234 home listings were 24.5% off from November, but up 41% from December 2021’s 158 homes on the market.
PATIENCE, HOMESELLER
At the height of the 2020-2021 sales frenzy, it took an average of just eight days on the market for sellers to have an accepted offer. These were the days of multiple, above-asking offers for many homes for sale in western county.
In December, the average days on market rose to 33, up 13.8% over November.
Prior to the pandemic, in 2019, sellers had an accepted offer after an average of 57 days on market.
LAST LOOK AT 2022
December’s 87 homes sold was a slight uptick (3.6%) from November, but 33.6% fewer than December 2021.
Of the last five years, 2022 produced the lowest number of sales for the month of December.
There were 79 pending sales in the MLS in December, the lowest in any single month of 2022 and down 22.5% from the prior month.
Along with the monthly decrease in median price, the average price per square foot paid by homebuyers in December was $276, down 8.3% from November and down 16.4% from a five-year high of $330 per square foot paid in May of this year.
Brian Hamilton is a Realtor (DRE# 02149112) for the Betsy Hamilton Real Estate Team (DRE# 01936209) at RE/MAX Gold (DRE#: 01949144) in Grass Valley. For more information, contact him at Brian@BetsyHamilton.com.
- BY THE NUMBERS
- December home sales in western Nevada County:
- $499,000— Median price (2022)
- $515,000 — Median price (2021)
- 33 – Days on market (2022)
- 18 – Days on market (2021)
- 87– Homes sold (2022)
- 131– Homes sold (2021)
- 234 – Homes for sale (2022)
- 158 – Homes for sale (2021)