CALLING ALL HOME SELLERS
Get ready for Spring
Low inventory, appreciating home values, and low interest rates indicate a good home selling season ahead.
From January to February 2016 western Nevada County saw an increase in sold homes (35%) and an increase in pending sales (11%).
Home prices increased about 12% in 2015 and many expect a slower but steady increase in 2016. Mainly fueled by economic supply and demand, some of last year’s increase was due to there being more buyers in the market than houses to sell. Since it looks like this trend will continue, buyers are being encouraged to take action as soon as possible.
Interest rates are improving home buyer affordability, for now. The decrease in 30-year fixed-rate mortgages from late 2015 to present has given buyers a nearly 5% increase in buying power. Furthermore, the introduction of new mortgage products with special incentives to first-time home buyers like the Down Payment Assistance (DAP) program, new products for those of us who are self-employed (yes, they are coming back again), and other specialty products are helping the Real Estate rebound.
Job creation is on the increase in 2016. This may be the most important factor in the housing recovery. Unemployment is near a ten-year low in many parts of the country and is steadily improving in Nevada County. We are seeing an increase in jobs in the health care, construction, service and real estate industries. Household formation also puts pressure on housing demand when it is fueled by job creation. Getting a job helps get Millennials into their own house.
The rental housing market has had a rent price increase of about 15% in 2015. The demand for rental housing is high and many times there are several hopeful renters waiting in line for an available unit. Most renters understand the value of home ownership and how the cost of ownership is less expensive than rent. Once they save enough for a down payment or get family help, they will also put pressure on the housing purchase market.
Then we have the demand from the Baby Boomer generation, taking retirement early and selling their home in the Bay Area or Greater Los Angeles and moving up to their 5-acre hobby farm or elegant cabin in the Sierra Nevada foothills. We see this trend continuing in the future. Children of the fifties and sixties had that dream of going back to the land. Just because they chose to spend the next 35 years working at HP doesn’t mean the dream died.
Given the Real Estate market conditions, this will be the best spring home selling season in years. We are finally blessed with a winter that translates into water available for nourishing the environment and landscaping. The place hasn’t looked this good in years. What are you waiting for? Call Us at 530-272-8073. We would love to become your trusted advisers in Real Estate matters.