Real Estate

Residential Sales In Nevada County July 2007

Residential sales in Western Nevada County in July 2007 vs. July 2006 fell about 6 percent. In July 2006, 98 homes were sold at an average sale price of $479,969, which was at 96.96 percent of the asking list price of $495,078.

In July 2007, 92 homes were sold at an average sale price of $406,267 which was at 96.37 percent of the asking list price of $421,556. Sales have not really dropped very much, but the average sales price dropped $73,702.

Of course one month does not reflect the true market conditions. Lawrence Yun, NAR senior economist, said “he isn’t looking for any notable changes in sales activity. A modest upturn is projected for existing-home sales toward the end of the year, with broader improvement to include the new-home market by the middle of 2008.”

With increased population growth in California, demand for housing is not going away. New construction has dropped considerably, land is scarce and interest rates are still low. Buyers will have to come into the market place sooner then later. Various reports that I have read expect a yo-yo effect, with nation wide prices dropping 2.3 percent and then rising 2.3 percent next year. Interest rates are expected to be 6.7 percent at the end of the year and ease off to 6.5 percent the beginning of next year. (Source, National Association of Realtors® NAR)

Real Estate

Newspapers Lose Battle for Real Estate Ads

Real estate advertising will become less prevalent in newspapers as it shifts to the Web, where online home buyers are actively searching for properties, analysts say.

Currently about 15 to 20 percent of real estate advertising is online, but Mike Simonton, media industry analyst for Fitch Ratings credit analysis service, says it is poised to go higher for a number of reasons.

Suzy Antal, director of marketing for Prudential Real Estate Affiliates, a unit of Prudential Financial Inc., said many Prudential practitioners have been pulling back on advertising during the current downturn, but as they return, they’re shifting ad budgets to their own Web sites, creating blogs, and taking different approaches beyond newspapers.

“Is newspaper a high priority? No,” Antal says. “I don’t believe my buyers and sellers are going to be in that market.”

Tim Fagan, president the real estate portion of Classified Ventures, which manages website for 125 newspapers, says it plans to “significantly increase’ its investment in Homescape, a real estate-related Web site that provides home listings, but he declined to provide specific numbers.

It’s wrong to assume that online advertising is cheaper than buying space in the paper, says Blanche Evans, editor of Realty Times, a online real estate news service. After all, online users expect extensive color photographs, lengthy descriptions, and even video tours —and all of those features can add up for a real estate practitioner.

Environment

Malcom Gladwell on the SUV Phenomenon

Malcom Gladwell is one of the funnier and more interesting writers of our time. His book “The Tipping Point” is one of my favorites. His recent article from the New Yorker, “Big and Bad” is a fascinating look at the history and marketing of SUVs, why people like them, and what the auto manufacturers have learned about how to make and sell them, to satisfy our craving for them.

When John wrote the article below, Gas Prices Too High? it brought home that, in a roomy and comfortable Prius, a 3,500 mile drive he took on his recent vacation cost him all of $249 in gas (at an average $3.35 gallon).

In an area where many people (my wife included) commute to Roseville or Sacramento, or beyond to get those perpetually necessary paychecks, the result is quite a financial squeeze if you don’t own efficient vehicles. What’s the point of getting a higher paycheck if it is eaten up by the commute to work?

There are plenty of reasons for big powerful vehicles. Towing and hauling is a real requirement for many people. But you should really read Gladwell’s article to see why people REALLY buy SUVs.

It’s a hoot. 

This article posted by Richard Webster

History

Coming to Nevada County

On a rainy night in October, 1968, my family moved to Nevada City from Quincy, CA. My sisters, with me following, explored the old Victorian house in darkness, with lightening striking outside the windows. We opened what we thought was a closet, to find a narrow dark staircase curving up to the second floor. My sister Betsy began making up stories about a murder that had taken place in the back bedroom, just to spook us.

I had started Kindergarten in Quincy, and would continue it in Nevada City. At that time, the classes were in the building between Main and Winter St., just behind the Courthouse. Two of my sisters were in elementary school just up the street, and one was going to Seven Hills School which was on Zion Street, at the time.

Naturally, my memory of that time is mostly visual. I knew nothing of Nevada City and its environs. My experience extended in a triangular area between our first house on Nevada Street (rented) at one point, the Kindergarten yard at another point, and my parent’s print shop on Commercial Street, as the third point. Frankly my memories are not properly sequential, but I remember crossing the freeway at Washington St. I also remember climbing the wall across from the church, and sometimes going up the incredibly (still!) steep Court Street that connects Coyote to Main north of Washington. That winter, ice covered it, and we were nearly late for school trying to get up it. We could have gone around, but it was too much fun!

Through stories told by my parents I learned that Nevada City’s downtown was about half-occupied when we came in 1968. There were several bars, and not much else. I remember Scotch Broom and Grimblefinger Book store (this might have come later) across the street from my parent’s print shop, which was in the building where Mecca is now. It was called DeCrepit Press… With my father’s peculiar sense of humor he had created a “backstory” of the founder being one Lucius Van Der Lewellyn DeCrepit. I remember exploring the space on Commercial St. with it’s brick walls and iron shutters, and mysterious basement with a creek running through it!

As I grew up in Nevada City, I saw many changes. The preservation movement, which turned Nevada City from a run-down, past-its-prime, down-at-the-heels logging town with people longing for the good old days of mining prosperity, to being a historical tourist draw with art and culture aplenty. The burying of the phone and electricity lines and the installation of gaslights and the restoration of the Theatre and Ott’s Assay Office building that created all the momentum… the burst of population growth that followed in the late ‘70’s… There are certainly things I miss, but overall, Nevada City continues to be a truly great place.

I’m hoping a few people who read this will come up with their own memories to share. I’ve got a few more, as well: The first Malakoff homecoming celebrations after the state park was established, the burning of the Torino and the old Carriage house, the Nevada City Independent, and much more.

This post by Richard Webster

Weather

Fun Weather!

Thursday started off in Grass Valley and Nevada City with a beautiful Hollywood-set snowstorm. I

Raining before it snowed
Raining before it snowed

Of course, as with most snowstorms around here, the next day dawned with a small amount of snow remaining in town, soon to be washed away by further rain.

It’s always a bit amusing to watch people drive in the snow.

I came into Grass Valley in the morning, driving in from Penn Valley. It was snowing but no snow was sticking, and people were driving fairly normally. I went to Flour Garden and read the paper, enjoying the frisson of excitement as people discussed the storm, over coffee. There was talk of sledding and snowmen.

As usually happens, those without 4wd get a little nervous about getting home. And then people take to the road, afraid to get snowed in. The drive from the Brunswick basin towards Grass Valley was slow, and careful. Sensibly, most people stayed in the slow lane, following in each others’ tracks. The funny thing was, once in Grass Valley, while the snow was still falling apace, the roads were merely wet, yet people kept chugging along at about 30 mph.

The biggest problem in traffic on a freeway under normal conditions is not so much speed as difference between the speed of adjacent cars. The other problem is people doing things which are unusual and unpredictable. Once the snow starts falling, these problems are exaggerated. Some people drive extremely slow and others drive aggressively (typically inexperienced drivers with 4wd). The best policy is caution, and to accommodate those who are intimidated and avoid those who are not. Yet, I had to laugh, when halfway to Penn Valley, as the snow turned to rain, that many cars were still crawling along at about 40mph.

I took a side trip to Raley’s where I took the little video, above.

Just a few hundred feet above Grass Valley and Nevada City the snow was deeper, colder and more slippery. This morning the trees of Banner Mountain and Harmony Ridge were still dusted with white, while the downtown areas were thinly covered with a couple of inches of snow. Little enough snow remained that the daffodil sprouts along the offramps were poking through, promising warmer days ahead.

Post by Richard Webster