While we wait for summer to catch up to the calendar, a deeper dive into area home sales statistics shows our local real estate market, at least, appears to be warming up.
And the reason why might have more to do with sellers than buyers, as price reductions have become as common as new listings coming onto the market.
Over the past three weeks, according to Multiple Listing Service statistics, there have been 145 new listings in western Nevada County. In that same span, there have been 109 price reductions.
As we reported earlier, the month of May saw the first significant uptick in western Nevada County home sales in 2023, with the 92 homes sold marking a 29.5% increase over April sales. The surge was welcomed while the local market endures its slowest sales in the past five years.
So why the monthly spike in sales? Certainly as spring and summer weather are more welcoming for buyers to search for a new home, it’s typical for both the number of the homes on the market and the sale of them to rise this time of year.
Digging deeper into the sales stats for the month of May might point to a more direct, and quantifiable, measure of the the uptick.
Of all the homes to hit the market locally in May, according to the MLS, the median initial list price was $677,500. The median sale price for May was $534,500, or 21% less than the first listing price.
But upon reducing their price, sellers came much closer to an acceptable price for buyers, as the last median listing price for homes sold in May was $549,450, just about 3% off from the median price of homes sold.
Sellers who priced the home right, from the beginning, have relatively seen quick sales, as the median days on the market for a home sold last month was a mere 13 days, down from 30 days on market in April.
Sellers of many homes priced more aggressively, and now with longer stays on the market, are reducing list prices — or weighing whether to do so — while they compete with a growing inventory of homes coming onto the market.
May saw 338 homes listed for sale locally. As of Thursday, June 22, there were 360 active residential listings in western Nevada County.
The median last listing price (blue) of homes sold has grown closer to median sold price (red) in recent weeks. (John Renwick/REMAX GOLD)
‘AT AN EVEN BETTER PRICE’
Price reductions have currently become a common sight for buyers reviewing homes listed locally.
In fact, between June 8-15, there were actually more price reductions (42) recorded than new homes coming onto the market (34).
The week prior to that, June 1-8, saw 52 new listings and 38 price reductions. And over the past seven days, as of Thursday, there were 59 new listings and 29 reductions in price.
Reductions not only can make a home more attractive to buyers who are considering making an offer on the home, but lowering the price also can introduce a new group of buyers looking for homes at a bit lower price point, particularly in their online search engines.
Though it’s difficult to fully quantify the impact price reductions played in May’s sales surge, it’s safe to say buyers are sure to welcome relief in a reduced price, as they’re already carrying the burden of higher interest rates — and monthly payments — as well as more costly fire insurance premiums.
But even as sales lag behind year-over-year comparisons, there is reason to believe June sales might be on pace to stretch May’s uptick into another month.
Between May 1-22, according to MLS data, there were 60 homes that closed escrow locally.
At the same point this month, June 1-22, there have been 77 homes sold.
**This story has been updated to reflect total homes sold through June 22.
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.