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Nevada County Real Estate Market Metrics - 2010 Summer Update
Created: 7/13/2010
June 16, 2010 – In the first quarter, we saw increases in both median price and unit volume, compared to a recent low for both in January of this year. There was a corresponding drop in sales of distressed properties. It is this writer’s opinion that at this point in the market cycle, median price and distressed sales are tightly coupled. In other words, a sustained recovery in prices will come when the percentage of distressed sales subsides.
The clear recovery trend of the first quarter has given way to mixed signals in April and May as the expected seasonal “bounce” wanes.
Median Price – After a strong increase in Q1-2010, from $256,000 to $280,000, median price fell through April and May to $258,500. As can be seen from the distressed sales trend below, this bears out the relationship between these two trends.
Unit Volume – In the first 3 months of 2010, volume grew from 53 to 69 units per month. That encouraging trend has continued in April and May, reaching 80 units. This is the second highest volume since the recovery began, topped only by 89 units in June of last year. This is an increase of 134% over the 38 units/month in early 2008, the local market bottom for sales volume.
There has been a sustained increase in sales volume in the first 5 months of 2010.
Distressed Sales – After falling significantly from 55 to 41 units (25%) in the first four months of 2010, sales of REO and Short Sales have risen again in May to 49 units. As this type of transaction accounts for a greater or lesser proportion of total sales, we expect to see prices move in the opposite direction.
Paul Sieving is a Realtor® with CENTURY 21 Gold Dust Realty, a former Director and MLS Chair of NCAOR, was Board Chair of the Grass Valley Chamber of Commerce in 2004, and has served our community as a real estate professional for 12 years. Comments, questions and thoughts are welcome at Paul@PaulSieving.com or (530) 274-0906.
