Understanding Today’s Market
Many assume that buyers are not actively shopping due to rising interest rates. However, the reality is different. Despite increased interest rates, buyer demand remains steady, and inventory levels are rising. While the frenzy of multiple offers has subsided unless it’s a really special property, buyers are still making moves, albeit more cautiously and wisely.
What You Need to Know as a Buyer
Affordability and Housing Options
Current Prices: Home prices in Nevada County have appreciated. The median sold price increased by 11.7% from last year and 15.1% from last month, now at $632,000.
Inventory Levels: More homes are available, with a 14.7% increase in inventory compared to last year. This provides you with a wider range of options to find the perfect home.
Practical Advice and Real-World Examples
Negotiation and Concessions
Today’s market often sees sellers offering concessions, such as covering closing costs or buying down interest rates, to make homes more affordable for buyers. This can be beneficial in reducing your initial costs. I recently helped a buyer submit an offer on a house, and we successfully negotiated $27,000 off the list price. Despite some concerns about the roof maintenance, which we further investigated, we secured an additional $8,700 credit for closing costs. This resulted in significant savings for the buyer and an incredible deal on a well-maintained home (other than the roof).
Price Reductions
Although all these numbers are year-to-date for 2024, we have seen many price reductions in recent weeks. My advice is to start looking above your price range. Many sellers are greatly reducing their home prices, and you may be able to get into a home you didn’t think was possible. It doesn’t hurt to put in an offer, as you don’t know where that seller’s motivation level is.
Fire Insurance
One point of concern I want to keep you aware of is fire insurance. It’s important to pick a house that is 1,000 feet or less from a fire hydrant if possible to keep those rates down. Homes way out on a dirt road will likely mean your fire insurance costs will go up. Fire prevention starts at the homeowner level. When purchasing a home, you need to be aware of how fire insurance will impact your purchase.
Here’s an article with my notes from a recent meeting with Nevada County supervisors and CalFire: Fire Insurance in the Sierra Foothills and Nevada County – A Crucial Update
Did you know Nevada County has the highest number of Firewise Communities in the United States? This shows our community’s commitment to fire risk management
Lifestyle Change
Making a move to Nevada County is about a change in lifestyle. Getting out of the hustle and bustle, and if your job allows you to work remotely, it can be life-changing to be here. While there are not a lot of high-paying jobs locally, many of my relocation clients are remote workers. Being within minutes of stunning scenery and outdoor adventures is awesome for the soul. My other buyers are buying second homes and investment properties. Nevada County is an up-and-coming area you want to pay attention to and consider placing your investment dollars here.
Market Realities
Selling Quickly
Homes are selling quicker likely because buyers have come to terms with the fact that interest rates are not likely to go down soon. Life happens, and they don’t want to put their lives on hold to make the move.
Seller Concessions
Seller concessions are happening. I just sold a listing in Lake of the Pines, and the seller had to give up a large concession to get it closed. It’s the reality of the market. If a home is not selling, the seller needs to do something. The other homes we were competing with are still on the market. My client needed to make the move, and it made sense for her. The carrying costs to hold that house were costing her thousands every month. Many homes for sale up here are vacant, and sellers are in the same position. These concessions can be used to pay your closing costs or buy down your mortgage interest rate to get that payment more reasonable.
Interest Rates
Interest rates have crept up a bit, with the average rate landing around 6.84% for a conventional loan and 5.74% for an FHA loan. Keep in mind that the payment is not all about the interest rate. Depending on how much you are putting down, this will impact your mortgage insurance. FHA loans have a high mortgage insurance rate to offset that lower interest rate.
Nevada County: A Hidden Treasure
Nevada County is a hidden treasure. Compared to Tahoe or Truckee, our prices are more reasonable, and we offer beautiful places to explore just minutes from your door. It’s a great place to invest, whether to relocate here, buy a second home, or even consider Airbnb opportunities.
I am here to help and would love to meet with you to discuss relocating to the area. I truly believe in being your partner in real estate, and I approach every aspect of my work with this mindset. The advice I give you will always reflect this commitment. Reach out to our Real Estate Team
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