2015 Real Estate Off and Running!

16 Feb 2015 Real Estate Off and Running!

The real estate market in 2015 has started off with much enthusiasm and the feel of an early active spring is upon us. While there are a variety of factors contributing to these market trends, interest rates trending downward is certainly a KEY factor (see January Blog for analysis).

I thought it’d be interesting and insightful to highlight a few key trends in some market areas and analyze what is actually taking place from a data standpoint.

Roseville- Overall homes for sale increased throughout 2014 peaking with a total of 464 homes for sale in October. The number of homes for sale as of January 2015 was 283. That is a drop of homes for sale by approx. 39% (see above graph)!

Auburn- Likewise, there was a similar trend in Auburn with homes for sale peaking approx. in October. Since, homes for sale have dropped by approx. 32%!

Christian Valley-Meadow Vista-Colfax- Regarding acreage properties in the $200,000 to $300,000 price range, there is ONLY a total of 8 listings currently available compared to 46 sales in all of 2014. There is HUGE shortage of homes in this price range!

Grass Valley- Both the median and average prices increased over the last 2 months in December and January!

Nevada City- Between April to September 2014, there was approx. 6-7 months of inventory available, which was a 2 year high. Over the past 3 months, inventory has dropped back to this 3-4 month range, which was the general inventory range back in 2013.

Lake of the Pines- The price per SF reached a one year high in December 2014 at $204 per SF. Overall, the last 4 months have maintained an upper price per SF trend compared to first quarter of 2014.

Summarizing, while the above trends are encouraging heading into spring, it’s is very important to always look at your subject property’s immediate neighborhood. Over the past few months analyzing various neighborhoods in my appraisal assignments, I’ve observed some subtle different trends within neighborhoods. While the real estate market has many strong indicators, price is still essential. Buyers are more educated now that ever and generally won’t pay more for a home listed above market value.

Appraisal Tip of the Month: More lenders are now requesting appraisers verify and comment that carbon monoxide detectors, smoke alarms, and double earthquake straps are installed. This is regardless of refinances/purchases OR FHA/conventional loans. Some lenders will condition to have corrected prior to close of escrow or loan. It’s a good idea to have these items checked prior to the appraiser inspection.

Disclaimer: All information deemed reliable but not guaranteed. The information is meant entirely for educational purposes and casual reading only and is NOT intended for any other use.  This information is NOT intended to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or other potential real estate or non real estate purpose.  If you’d like to obtain and order an appraisal for your specific needs, please contact Bryan at 530-878-1688 for more information.