Truckee and Lake Tahoe Market Update
Residential Properties – Single Family Homes and Condominiums
Week of: December 12th to December 18th
Active Inventory Summary:
Active Listings: The inventory for residential properties is currently at its lowest level of the year with 938 active listings in the market; 695 single family homes and 243 condominiums for sale. Coldwell Banker has over 15% of the active listings in the market and continues to be the market leader for listings.
REO-Short Sale Listings: Of the active listings, there are 150 properties listed as short sales, (16.0%) and 41 properties listed as REO sales, (4.4%).
Months of Inventory: Based on the current inventory and sales for the previous 30-day period, the market has roughly 7-months of inventory available.
Sales Summary: Year-To-Date
Total Sales 2011 Vs 2010:
Total Sales: For 2011, there have been 1,157 residential properties sold in the market as compared to 1,090 for the same period in 2010 which is a year over year 6.1% increase in sales. Of the total sales in the market for 2011, 909 have been single family homes, while 248 or 21% of the sales are condominiums. I n 2010, condominiums represented 31% of the sales which is significantly higher than we are experiencing in 2011.
REO & Short Sales: Of the properties sold this year, 199 have been REO’s, (17.2%), and 167 have been Short Sales, (14.4%) which results in over 31% of the properties sold being distressed properties. In 2010 for the same period, there were 206 REO sales and 135 short sales or just over 31% of the total sales which is identical to this year.
Sales Price Range: For the year, there have been 760 residential properties sold priced below $500,000, 297 properties sold between $500,000 and $1,000,000 and 100 properties sold over $1,000,000.
Median and Average Sales Prices: The median sales price for properties sold year to date is $400,000 while the average sales price is $541,747. For the same period in 2010, the median sales price was $431,000 and the average sales price was $647,421 which is a (7.2%) and (16.3%) decline in price respectively year over year.
Last Week’s Sales: For the week of December 12th, a total of 24 properties sold which was down from the previous week’s sales of 32 properties. Of the properties sold last week, seven (7) of the properties sold were priced over $750,000 and of those, three were sold over $1.8 million.
Pending Sales: Currently there are only 130 pending residential sales in the market which up slightly from the previous week. Of the pending sales, 16 are short sales and 29 are REO properties which are roughly 35% of the pending sales being distressed properties.
Market Activity Summary:
Thus far, sales for the first three weeks of December have been excellent with an average of 29 sales per week. December sales have far exceeded sales for the same period last year which is always encouraging.
Last week’s residential sales represented a decrease from the week before with 24 total properties closing escrow. Within last week’s sales, seven properties sold with a price above $750,000 and three of these sales were priced above $1,800,000. Coldwell Banker continues to be the market leader in terms of units sold and sales volume with roughly 16.5% market share in the north Lake Tahoe and Truckee area.
Median sales prices have decreased from last year by 7.2% to $400,000 while the average sales prices have decreased by 16.3% to $541,747. The overall decline in sales prices continues to be one of the driving factors influencing home sales on a year to date basis for astute investors looking to own a property in this remarkable resort area.
The hottest segment of the market continues to be homes priced under $500,000 as roughly 66% or 760 properties have sold in this price range. In 2010, 60% or 649 properties sold in this price range which was lower than this year. Certainly the price declines have influenced this trend.
Luxury home sales, homes priced above $1,000,000, are down 23% from 2010 sales as 100 properties or 8.6% of sales have sold year to date as compared to 130 properties sold last year in this segment. The median sales price of the luxury properties sold in 2011 is $1,613,000 which is up 1% from last year. Conversely, the average sales price of the luxury sales this year is $2,005,489 which is 9% lower than last year.
The mid range market sales, $500,000 to $1,000,000 are down slightly from last year with 297 properties sold or 25.7% of sales as compared to 311 properties sold or 28.5% in this range in 2010.
Distressed properties, REO and Short Sales represent just over 31% of the sales in the market which is identical to the quantity of REO and Short sales sold in 2010. On a comparative basis, 31% of the sales are distressed properties while 20% of the active listings and 35% of the pending sales are distressed properties.
The active inventory of residential properties is at its lowest point for the entire year to 938 residential properties. This is not uncommon this time of year as homeowners take their homes off the market for the winter or place them on a ski lease program.
With the inventory of great residential properties on the market, homes priced at 10-year lows and some of the lowest interest rates in history, savvy real estate investors are taking advantage of this market for a home in the Lake Tahoe–Truckee resort communities.
Now may be one of the best times for Buyers considering an investment in a vacation home or investment property in the Lake Tahoe-Truckee market.
Truckee/ Lake Tahoe Market Report
Residential Properties – Single Family Homes and Condominiums
Week of: November 14th to November 20th
Active Inventory Summary:
Active Listings: The inventory for residential properties went down slightly from the previous week to 1,069 active listings in the market; 818 single family homes and 251 condominiums for sale. Coldwell Banker has over 16% of the active listings in the market and continues to be the market leader for listings.
REO-Short Sale Listings: Of the active listings, there are 165 properties listed as short sales, (15.4%) and 51 properties listed as REO sales, (4.8%).
Months of Inventory: Based on the current inventory and sales for the previous 30-day period, the market has roughly 9-months of inventory available.
Sales Summary: Year-To-Date
Total Sales 2011 Vs 2010:
Total Sales: For 2011, there have been 1,049 residential properties sold in the market as compared to 987 for the same period in 2010 which is a year over year 6.3% increase in sales. Of the total sales in the market for 2011, 826 have been single family homes, while 223 or 21% of the sales were condominiums. I n 2010, condominiums represented 32% of the sales which is significantly higher than in 2011.
REO & Short Sales: Of the properties sold this year, 184 have been REO’s, (17.5%), and 141 have been Short Sales, (13.4%) which results in over 30% of the properties sold being distressed properties. In 2010 for the same period, there were 193 REO sales and 121 short sales or just over 31% of the total sales which is almost identical to this year.
Sales Price Range: For the year, there have been 692 residential properties sold priced below $500,000, 266 properties sold between $500,000 and $1,000,000 and 91 properties sold over $1,000,000.
Median and Average Sales Prices: The median sales price for properties sold year to date is $400,000 while the average sales price is $543,087. For the same period in 2010, the median sales price was $432,000 and the average sales price was $638,111 which is a (7.4%) and (14.9%) decline in price respectively year over year.
Last Week’s Sales: For the week of November 14th, a total of 25 properties sold which was up nicely from the previous week’s sales of 20 properties. Of the properties sold last week, only one of the properties sold were priced over $750,000.
Pending Sales: Currently there are 153 pending residential sales in the market which went down slightly from the previous week. Of the pending sales, 21 are short sales and 26 are REO properties which are roughly 31% of the pending sales being distressed properties.
Market Activity Summary:
November sales are slightly better than last year for the first three weeks of the month. Last week’s residential sales represented a nice spike up from the week before with 25 total properties closing escrow. Coldwell Banker continues to be the market leader in terms of units sold and sales volume with roughly 16% market share in the north Tahoe and Truckee area.
Median sales prices have decreased from last year by 7.4% to $400,000 while the average sales prices have decreased by 14.9% to $543,087. The percentage drop in sales has been rather consistent for the past 2-3 months and continues to be one of the driving factors influencing home sales on a year to date basis for astute investors looking to own a property in this remarkable resort area.
The hottest segment of the market continues to be homes priced under $500,000 as roughly 66% or 692 properties have sold in this price range. In 2010, 59% or 589 properties sold in this price range which was lower than this year primarily because of the drop in home prices.
Luxury home sales, homes priced above $1,000,000, are down 25% from 2010 sales as 91 properties or 8.7% of sales have sold year to date as compared to 122 properties last year in this segment. The median sales price of the luxury properties sold in 2011 is $1,650,000 which is up 3% from last year. Conversely, the average sales price of the luxury sales this year is $2,053,202 which is roughly 2% lower than last year.
The mid range market sales, $500,000 to $1,000,000 are down slightly from last year with 266 properties sold or 25.4% of sales as compared to 276 properties sold or 28.0% in this range in 2010.
Distressed properties, REO and Short Sales represent just over 30% of the sales in the market which is almost identical to the quantity of REO and Short sales in 2010. On a comparative basis, 30% of the sales are distressed properties while 20% of the active listings and 31% of the pending sales are distressed properties.
The active inventory of residential properties showed a slight decrease in active listings. The inventory for single family homes is fairly significant as compared to other parts of California where inventory is limited.
With the inventory of great residential properties on the market, homes priced at 10-year lows and some of the lowest interest rates in history, savvy real estate investors are taking advantage of this market for a home in the Lake Tahoe – Truckee resort communities.
Now may be one of the best times for Buyers considering an investment in a vacation home or investment property in the Lake Tahoe-Truckee market.
Truckee/Lake Tahoe Market Update
2011 Weekly Real Estate Market Report
North Lake Tahoe-Truckee Region MLS
Residential Properties – Single Family Homes and Condominiums
Week of: October 17th to October 23rd
Active Inventory Summary:
Active Listings: The inventory for residential properties went up slightly from the previous week to 1,214 active listings in the market; 943 single family homes and 271 condominiums for sale. Coldwell Banker has over 16% of the active listings in the market and continues to be the market leader for listings.
REO-Short Sale Listings: Of the active listings, there are 174 properties listed as short sales, (14.3%) and 45 properties listed as REO sales, (4.1%).
Months of Inventory: Based on the current inventory and sales for the previous 30-day period, the market has roughly 9-months of inventory available.
Sales Summary: Year-To-Date
Total Sales 2011 Vs 2010:
Total Sales: For 2011, there have been 945 residential properties sold in the market as compared to 879 for the same period in 2010 which is a year over year 7.5% increase in sales. Of the total sales in the market for 2011, 746 have been single family homes, while 199 or 21% of the sales were condominiums. I n 2010, condominiums represented 32% of the sales which is significantly higher than in 2011.
REO & Short Sales: Of the properties sold this year, 168 have been REO’s, (17.8%), and 130 have been Short Sales, (13.8%) which results in over 31% of the properties sold being distressed properties. In 2010 for the same period, there were 172 REO sales and 110 short sales or roughly 32% of the total sales which is almost identical to this year.
Sales Price Range: For the year, there have been 623 residential properties sold priced below $500,000, 238 properties sold between $500,000 and $1,000,000 and 84 properties sold over $1,000,000.
Median and Average Sales Prices: The median sales price for properties sold year to date is $400,000 while the average sales price is $548,746. For the same period in 2010, the median sales price was $430,000 and the average sales price was $639,713 which is a (7.0%) and (14.2%) decline in price respectively year over year.
Last Week’s Sales: For the week of October 17th, a total of 27 properties sold which was a significant increase from the previous week’s sales of 16 properties. Of the properties sold last week, seven (7) of the properties sold were priced over $750,000 and of these seven, 5 were greater than $1.0 million. Of the million sales, one property was $2.5 million and another was $3.0 million. Coldwell Banker was involved in 35% of the closed transactions, including a multimillion dollar sale.
Pending Sales: Currently there are 175 pending residential sales in the market which is identical to the previous week. Of the pending sales, 16 are short sales and 27 are REO properties which are roughly 25% of the pending sales being distressed properties.
Market Activity Summary:
Sales for the week of October 17th went back up nicely from the previous week with 27 residential properties closing escrow. October 2011 as expected is turning into a great month of sales and is outpacing sales for October of 2010. What was particularly encouraging about last week’s sales was the number of sales over $1.0 million with five properties in this range. Coldwell Banker has roughly 16% market share in the north Tahoe and Truckee area and is the market leader in terms of both units sold and sales volume.
Median sales prices have decreased from last year by 7.0% to $400,000 while the average sales prices have decreased by 14.2% to $548,746. The continued downward trend in price in our market is one of the major factors influencing home sales on a year to date basis for astute investors looking to own a property in this remarkable resort area.
The hottest segment of the market continues to be homes priced under $500,000 as roughly 66% or 623 properties have sold in this price range. In 2010, 60% or 525 properties sold in this price range which was lower than this year primarily because of the drop in home prices.
Luxury home sales, homes priced above $1,000,000, are down 21% from 2010 sales as 84 properties or 8.9% of sales have sold year to date as compared to 107 properties last year in this segment.
The mid range market sales, $500,000 to $1,000,000 are down slightly from last year with 238 properties sold or 25.2% of sales as compared to 247 properties sold or 28.1% in this range in 2010. The gap in this segment of the market has narrowed in the past 90-days as more sales in this price range have occurred of late.
Distressed properties, REO and Short Sales represent 31% of the sales in the market which is almost identical to the quantity of REO and Short sales in 2010. Interestingly enough while 31% of the sales are distressed properties only 17% of the active listings and 25% of the pending sales are distressed properties.
The active inventory of residential properties leveled off last week with a slight increase in active listings occurring. The inventory for single family homes is fairly significant as compared to other parts of California where inventory is limited.
With the inventory of great residential properties on the market, homes priced at 10-year lows and some of the lowest interest rates in history, savvy real estate investors are taking advantage of this market for a home in the Lake Tahoe – Truckee resort communities.
Now may be one of the best times for Buyers considering an investment in a vacation home or investment property in the Lake Tahoe-Truckee market.
Market update for Truckee and Lake Tahoe
2011 Weekly Real Estate Market Report
North Lake Tahoe-Truckee Region MLS
Residential Properties – Single Family Homes and Condominiums
Week of: October 10th to October 16th
Active Inventory Summary:
Active Listings: The inventory for residential properties went down significantly from the previous week to 1,211 active listings in the market; 931 single family homes and 280 condominiums for sale. Coldwell Banker has over 16% of the active listings in the market and continues to be the market leader for listings.
REO-Short Sale Listings: Of the active listings, there are 169 properties listed as short sales, (14.0%) and 45 properties listed as REO sales, (3.7%).
Months of Inventory: Based on the current inventory and sales for the previous 30-day period, the market has roughly 9-months of inventory available.
Sales Summary: Year-To-Date
Total Sales 2011 Vs 2010:
Total Sales: For 2011, there have been 916 residential properties sold in the market as compared to 857 for the same period in 2010 which is a year over year 6.9% increase in sales. Of the total sales in the market for 2011, 724 have been single family homes, while 192 or 21% of the sales were condominiums. I n 2010, condominiums represented 33% of the sales which is significantly higher than in 2011.
REO & Short Sales: Of the properties sold this year, 163 have been REO’s, (17.8%), and 129 have been Short Sales, (14.1%) which results in over 31% of the properties sold being distressed properties. In 2010 for the same period, there were 168 REO sales and 108 short sales or roughly 32% of the total sales which is almost identical to this year.
Sales Price Range: For the year, there have been 607 residential properties sold priced below $500,000, 230 properties sold between $500,000 and $1,000,000 and 79 properties sold over $1,000,000.
Median and Average Sales Prices: The median sales price for properties sold year to date is $400,000 while the average sales price is $545,472. For the same period in 2010, the median sales price was $429,000 and the average sales price was $637,969 which is a (6.8%) and (14.5%) decline in price respectively year over year.
Last Week’s Sales: For the week of October 10th, a total of 16 properties sold which was a significant decrease from the previous week’s sales of 30 properties. Of the properties sold last week, four (4) of the properties sold were priced over $1,000,000. Coldwell Banker was involved in 23 of the closed transactions or 54% of the sales.
Pending Sales: Currently there are 175 pending residential sales in the market which is up slightly from the previous week. Of the pending sales, 14 are short sales and 28 are REO properties which are roughly 24% of the pending sales being distressed properties.
Market Activity Summary:
The first two weeks of October were on fire with 42 sales the first week and 30 sales the second week. This past week sales took a bit of a breather with 16 sales closed for the week. All in all, sales thus far for October are 25% higher than last year for the same period. Coldwell Banker is the market leader in terms of unit sales and sales volume with 393 units sold and $168,000,000 in sales volume. Coldwell Banker has roughly 16% market share in the north Tahoe and Truckee area.
Median sales prices have decreased from last year by 6.8% to $400,000 while the average sales prices have decreased by 14.5% to $545,742. This continued downward trend in price is one of the major factors influencing home sales on a year to date basis for astute investors looking to own a property in this remarkable resort area.
The hottest segment of the market continues to be homes priced under $500,000 as roughly 67% or 607 properties have sold in this price range. In 2010, 60% or 513 properties sold in this price range which was lower than this year which is influenced because of the reduction in home prices.
Luxury home sales, homes priced above $1,000,000, are down 23% from 2010 sales as 79 properties or 8.6% of sales have sold year to date as compared to 103 properties last year in this segment. For 2011, the median sales price for luxury properties is $1,675,000 while the average sales price is $2,135,635 which is slightly higher than the prices for 2010 for luxury properties.
The mid range market sales, $500,000 to $1,000,000 are down slightly from last year with 230 properties sold or 25.1% of sales as compared to 241 properties sold or 28.1% in this range in 2010. The gap in this segment of the market has narrowed in the past 90-days as more sales in this price range have occurred of late.
Distressed properties, REO and Short Sales represent 31% of the sales in the market which is almost identical to the quantity of REO and Short sales in 2010. Interestingly enough while 31% of the sales are distressed properties only 17% of the active listings and 23% of the pending sales are distressed properties.
The active inventory of residential properties as anticipated has been declining steadily over the past few weeks with the increase in closed sales as well as homeowners starting to take their homes off the market for the upcoming winter season.
With the inventory of great residential properties on the market, homes priced at 10-year lows and some of the lowest interest rates in history, savvy real estate investors are taking advantage of this market for a home in the Lake Tahoe – Truckee resort communities.
5 Ways The Market Is Trying To Tell You Now May Be The Time To Buy
Taking a look at the real estate market over the past several decades, a cycle is emerging. Usually there is a steady increase in prices, the prices then peak; that is then followed by a relatively sharp decline which the results in a flattening of the market. The last time the market hit a peak was in 2006. Since then, prices in many areas have declined with a surplus of homes for sale.If we take a page from the history books, it is likely that the next step is for the market to hit bottom. At some point, the market will begin the steady climb we have seen so many times before; but the question is when will that happen? Is it happening now?You may be surprised to know that some economists believe that the market actually gives us subtle signals as to what it may do and where it may be going. We just need to look a little more closely at the ways in which the market is communicating those trends.The following five factors may indicate that the market may be approaching its final descent. For sellers, that could mean that your patience may soon pay off. For buyers – this may be your best time to buy.Fewer new homes are being built – In a September 15, 2011 white paper for the global investment management firm, GMO, titled “Between Errors of Optimism and Pessimism – Observations on the Real Estate Cycle in the United States and China,” financial commentator and consultant Edward Chancellor said that “at the bottom of the cycle, new construction comes to a virtual standstill”, which, according to federal statistics is now happening.When fewer existing homes are selling, most home developers slow down or cease building new homes. To achieve a balance between supply and demand takes time before the market can turn around – which seems to be happening. In its September 20th report on new residential construction, the U.S. Census Bureau and Department of Housing and Urban Development reported privately-owned housing starts hit a three month low in August and were down 5% from the month before, down 5.8% from August 2010, and more than 25% from September 2006 when new housing construction may have hit its peak. At the same time, The National Association of Realtors reported existing home sales hit a five-month high in August and rose 7.7% from July 2011 and 18.6% from August 2010. That may be a sign of demand catching up with supply.A growing demand for housing – It’s a simple fact of life – people need somewhere to live. Buyers may be wary of the process right now, but there is an entire section of the population who will undoubtedly consider buying in the near future. In an Inman News article released October 4, 2011 entitled “5 Signs a Real Estate Recovery Is Near” David Stevens, President and CEO of the Mortgage Bankers Association, reminds us that Generation Y (people born between 1977 and 1994) is estimated to include approximately 80 million people, or 25 percent of the U.S. population and those consumers “are now entering their prime time for starting their careers, their families, and for buying a home.”Keep in mind that the U.S. Census Bureau predicts the country’s population to reach 423 million by 2050. That’s an increase of 112 million people in just 40 years. Those people will need housing and there will be an inevitable demand for homes to purchase. It stands to reason that this population growth will lead to fewer homes available for sale and prices will rise.Rents are rising – Because more people are choosing to rent instead of buy in the present market, the cost of renting is rising. An article in USA Today titled “Rising Rents Make Houses Less Affordable” Zillow economist Stan Humphries noted that rents are expected to rise about 4% this year and that increase will continue in 2012. He attributes the price increases to the strong demand created by homeowners who have lost their homes to foreclosure.High rental prices can be a good thing for the health of the over-all real estate market. The closer the average cost of renting comes to the average cost of owning, the more attractive it is to buy. In his GMO paper, Chancellor said; “Whilst people remain cautious of home-ownership, the first effect of rising demographic demand is felt in the rental markets as rents start to rise. In time, rising rents push up the prices of existing homes and spur new construction.”Homes may be more affordable – Let’s face it, we’re seeing prices that we may never see again. The National Association of Realtors’ most recent Home Affordability Index finds the national median priced existing single-family home was $168,400 in August 2011, and the average interest rate was 4.69%. That’s compared to a median of $221,900 and a 6.58% average interest rate in 2006. Low housing prices are a key in sparking renewed interest in owning real estate and can be the launching pad for a recovery.It can’t get much worse – Pessimism appears to be at an all-time high, and it seems just about the time experts believe things couldn’t get any worse – they start getting better.In his GMO paper, Chancellor says “In the good times, a house is seen as a highly levered asset that only goes up. In the downturn, the same property is viewed as illiquid, expensive to maintain, and heavily taxed.” Maybe we should start thinking of bad news as good news – a sign that a turnaround may be right around the corner and that now may truly be the best time to buy.So, as these signs point to the market approaching its trough, what does that mean for you? The prices you’re seeing now may be the lowest for many years to come. You may not want to make the mistake of waiting until we’re in another boom to make your move. If you’re thinking about buying or selling and would like to explore your options, please give me a call. I’d be happy to help. |
