LOP, ALTA SIERRA AND SOUTH COUNTY PROPERTY VALUES

Over the past 12 months there were 99 single family homes which sold in Alta Sierra, Lake of the Pines as well as the South County area under $200,000. The lowest priced home was found in LOP which was 24212 Oakmont Way, the sales price was recorded at $73,000 for the three bedroom with two and a half bath 1,872 square foot home.

Currently there are 16 homes on the market in that same area with a list price less than $200,000. With the lowest price being a three bedroom, two bath, 1,448 sq. ft. home on a .37 lot located at 10969 Lakeshore North within Lake of the Pines currently priced at $126,000.

Now for the other end of the spectrum within the same area over the same time frame. There were three homes that sold with a sales price over $900,000. All three are water-front properties, with the most expensive being a 4,000 sq. ft. home on one acre on Lake Combie for $1,300,000.

Staying with water-front for a moment but looking at the lower end of the spectrum. There was a 1,796 sq. ft. three bedroom two bath home on .22 water-front lot on Lake Combie that sold within the past 12 months for $499,000.

Currently the lowest price water-front home on the market is on a four bedroom, two and a half bath, 2,276 sq. ft. home listed at $799,000.

Please feel free to contact me at 530.477.2277 if you would like for me to educate you on the current market conditions.

Scott Hopper - Realtor, 530.477.2277

NEVADA COUNTY'S UNEMPLOYMENT AND HOUSING

California as well as Nevada County's housing markets often trends with it's unemployment, click here for U.S. Bureau of Labor Statistics. May 11, 2012.  When the unemployment rate rises, a few things occur. The first effect is bond prices get bid higher, therefore reducing it's yield which pushes the cost of borrowing money lower (less expensive to borrow the same amount of money).

Secondly home prices also trend lower, as the economy weakens so does the demand for housing. Over the course of the past two years, statistics show more Californians have found employment. The state's housing markets have shown signs of strength over that same period.

Home builder equities who are traded daily on the NYSE have moved to the upside as much as 50% in the past six months. Two of the largest home builder's equity prices are shown here TOL and DHI. Equity prices in general are said to represent what the the future holds (forward looking indicator). If this is the case, then it could be a great time to purchase real estate.

An under water seller may want to sell into the market's current strength to receive the short sale tax advantages. I have written the tax implications prior to the rule change click here.

Where a buyer may want to wade into today's market as prices of many homes Nevada County homes have come off their highs by as much as 60%.  Mortgage rates are currently at or near all-time lows and there are loan programs which could get you into a home for as little as 3% down.

While no one knows for sure if real estate prices will go higher any time soon, indicators do look positive.

Scott Hopper - Realtor 530.477.2277