Nevada City Virtual Tour

Thursday, January 13, 2011

Nevada County Housing market update Jan 2010

Nevada County Housing Market

So why are prices down?

F i n a n c i n g  a n d  f e a r

Both Zillow and CoreLogic reported home prices down just over 5 percent in November year over year, and the price drops are accelerating month to month (of course this is the slowest season). While California and Arizona, with all its overbuilding and foreclosures, leads the nation in price declines, some surprising cities led the drop. Chicago home prices were down 6.6 percent, Atlanta down 6.2 percent, Philadelphia off 4 percent, according to CoreLogic. These were not exactly bubble markets, but they are seeing higher foreclosure numbers, and that is likely bringing down prices.

It is also becoming more expensive to get a loan, and that extra expense may be coming of selling prices.

So it begs the question if now is the best time to get in?

We know that foreclosure activity has taken a bit of a hiatus as the banks figure out all their procedures and refile a whole lot of paperwork.

The majority of those foreclosures though will come back to the system and hit the market in 2011. Add pent up selling demand, that is, sellers who have kept their homes off the market, waiting for a bottom, and the usual Spring additions, and we're likely to see inventories head far higher in the coming months.

Prices are likely falling again now because the only homes selling are the real bargains. Some leftovers.

If enough demand comes back in the Spring, prices could finally hit bottom.

I'm not saying they're going to come surging back with gusto, but they will stabilize.

The decision now is, do I get in and get the really great deal, or do I wait until Spring to see the new inventory being baked and perhaps have a tiny bit of competition? Obviously it's going to depend on the local market.

But it sure feels like it might be finally stabilizing at bottom. It begs the question, do I need to worry about interest rates rising (which they have) that might limit your loan amount. Yup.

And it's pretty nice to live here in Nevada County and if you have always wanted to change homes to say a nice log home, lake property, or a beautiful Victorian in Grass Valley or Nevada City, the melons ripe. Time to eat.


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