For the first time in multiple years, the number of homes for sale in a single month in western Nevada County topped 400 units in May.
The increase in inventory is a welcome sight for buyers as local listed has offered slim pickings over the past several years since the pandemic (more on that in next week’s monthly market update).
But as more homes come onto the market, it means those properties that have been sitting for several weeks might begin to be overlooked — or at least fewer folks taking a second look — as their email inboxes are filled with new listings each morning. In fact, over the past week, there have been more price reductions than new listings on the local market.
What’s a seller to do? For many, right now, that means reducing their price in hopes bringing a new group of buyers to their front door.
For example, on just Wednesday, there were nine new listings in western Nevada County and 12 price reductions.
Over the past seven days, as of Wednesday, there were 42 new listings and 64 recorded price reductions.
As sellers consider a shift in their price, it’s important to think like a buyer. Round numbers are important, as prospective buyers conducting online searches typically do so in groups of $50,000 and $100,000 increments (searching for homes under $500,000 or $450,000, for example)
Those listing their homes at $625,000 might draw a few more looks in dropping the price by $10,000 to $15,000. But if that seller wants the biggest bang for the (reduced) buck, they are much more likely to find a larger pool of prospects by reducing below $600,000 — likely bringing in an entire new group of buyers who didn’t bother to look at the home because it was above their budget.
Over the next several weeks of the summer, as home sales continue to heat up — not unlike these temps we’re enduring locally right now — it will be interesting to see if price reductions will grow alongside the largest inventory of homes we’ve had for a few years now.
Brian Hamilton is a Realtor (DRE #02149112) for the Betsy Hamilton Real Estate Team at RE/MAX Gold (DRE #01949144) in Grass Valley. Email him at Brian@BetsyHamilton.com or visit www.BetsyHamilton.com for more information.
