I find the rapid increase in prices a bit surprising. This home would not have sold for over $300,000 any time in the last year, and yet it was listed yesterday at $310,000 and the listing agent told me this morning thy had two offers on it! It has nice features and upgrades, but it is small, just 896 square feet. It has a nice rolling 2 acre lot, but it is not well maintained, there is no great expense in landscaping. There is an attached 2 car garage, but the home faces the back side of the property, so entry to the garage means driving around the backside where the front entry faces the rear neighbors. It is awkward. The home is not move-in ready. The upgrades are nice, but for $310,000 this home is not a gem. If this is where the market it going, my days as a $300K and under specialist are going to be extinguished.
There is no available inventory under $300,000- not in Wildwood, not in older sections of Grass Valley, and not even in the Big Oak Valley. No where in Nevada County today is a remaining area or subdivision where homes regularly sell for under $300,000. That is a game changer for buyers. Will this price inflation hold up into the summer.
The glimmer of hope for buyers is that inventory remains at the seasonal mid-winter lows that always seem to indicate prices are higher than they actually are simply because sellers do not have to compete with each other for a limited number of buyers. We are in a seller’s market right now and price inflation is natural. All it would take to turn this trend around would be about 100 new listing in the next 30 days and the market would stabilize, prices would flatten out, and we would see plenty of homes for less than $300,000. Just wish I had that crystal ball to know when the flood of spring listings with moderate prices. Hopefully it will come soon.