Market Report: 4th Quarter 2009
Record Price Reductions Fuel Tahoe Property Sales!
The 4th quarter of 2009 delivered record sales and the lowest prices in years in the Truckee Tahoe real estate markets. “It was a great quarter for buyers as prices continued to soften. My clients buying properties were thrilled about the opportunity to secure their Tahoe retreat!” notes Alison Elder, Elder Group Tahoe Real Estate.
Sales increased 107% from the Q4 in 2008 overall. and improved a huge 147% on the West Shore, 125% in Tahoe City and 91% in the North Shore. early 100 properties closed in Q4 2009. In the Truckee areas market, huge increases were also recorded. Home sales increased 80% representing huge increases in Donner Lake (+1,100%), Glenshire/Devonshire areas (211%), Northstar (+100%) and Truckee (+77%).
Alison Elder, Elder Group comments, “Reduced square footage pricing, low financing rates and motivated sellers are helping to propel property sales. There’s no doubt now is the time to buy your Tahoe cabin, condo or estate home – and the statistics prove it!”
Record Home Sales As Compared to Q4 2008
As compared to 2008, Q4 of 2009 produced fabulous sales statistics occurred with record number of sales in areas like Donner Lake, Northstar, Glenshire and Truckee as compared to the same quarter in 2008.
In Truckee, home sale prices decreased by 8% from $619,644 to $570,132 in just one year. The Lake Tahoe area experienced a huge 21% market adjustments and slid from $637,772 to 503,379.
Given the unique second home bubble market of Lake Tahoe and Truckee, overall counts for bank owned properties (REO’s) and short sales were relatively low compared to Q4 sales volume. In Truckee, only 7% were short sales and 16% bank owned REOs – about 1 out of 4 homes involved a bank related situation. Around the Lake, the statistics are higher with at total of 31% of sales involving a bank. Competition for REO properties continues. Quick decisions, cash and “as is” are key to securing a bank owned property.
Here’s what happened in Q4, 2009 in the Truckee Tahoe real estate market:
- Bank owned property sales: 29
- Short sales: 100 count
- Q4 2009 Totals: 129 homes sold via an REO or short sale position in the Truckee Tahoe market
“As Banks carrying short sale properties on their ledgers and attempt to avoid the liability required to carry REO properties, I am confident these properties will be listed, marketed and available for purchase in improving transaction processes with the Banks over the course of 2010”, says Alison Elder, Elder Group Tahoe Real Estate.
In areas that have been and will continue to be hard hit, increased inventory will impact the overall square footage prices for areas like Kings Beach, Tahoma, and some areas in Tahoe Vista. Remember, cash is still king when negotiating with a bank. As you may know, Alison is seasoned in both short sale and REO transactions and can be reached at Tahoe@alisonelder.com for more information about bank owned properties.
Tahoe Donner Update
Tahoe Donner HOA is undoubtedly one of the most attractive areas to buy property and enjoy the Tahoe lifestyle. Tahoe Donner’s popular HOA, with 6,200 home sites and unparalled amenities is really second to none. Providing easy access to ski resorts, Lake Tahoe and Donner Lake, the convenience of Truckee, great restaurants and of course, all it’s HOA amenities, Tahoe Donner is a great investment and family environment.
Alison comments, “Tahoe Donner has completed the majority of its price correction over the course of 2009. Granted, there will be some “great deals” that will become available – but that will always be the case. Given Truckee’s overall price decline of ~8% over the last year and ~17% over the last couple of years, we’ve rolled back to the early year 2000 levels. It’s a great time to buy in Tahoe Donner”.
In Alison’s perspective, there’s no doubt Tahoe Donner will continue to be an excellent long term value, “The wide range of amenities leaves Tahoe Donner in a class of its own. Buyers interested in the $350,000 – $600,000 market have some excellent options”. Given the low percentage of Tahoe Donner homes that will actually become REO or short sales as compared to other areas, Buyers must move quickly. However, Elder Group is seeing many families that want to capitalize on the low priced market and upgrade their current properties given low square footage pricing and favorable lending rates. Our Q4 2009 sales results prove it’s a great time to buy in Tahoe Donner.
Market Perspective
While real estate market conditions, like the stock market, are difficult to predict, Alison Elder comments “…as the number of bank owned properties (REO’s) and short sales increase with the next wave of Bank releases through spring,traditional Seller’s will experience continued pricing pressure in a market keenly oriented to square foot pricing. Buyers will pay special attention to the quality, location, age and condition of a home – in addition to the overall health of a particular neighborhood.”
Regardless how you slice the pie, the time to buy is NOW. All the elements are aligned – and won’t get much better. Buyers financing their properties can access fabulous loans and interest rates. This won’t last forever, as money supply is projected to tighten in the spring. Home pricing rollbacks will normalize and begin to climb by summer once REO and short sale inventory is reduced and placed with new owners.
Those buyers waiting for the “perfect moment” need to act or miss this historic “slice of Tahoe living” window. And, we all know that “could have, should have, would have” is only a reflection. Start enjoying Tahoe NOW!
Please feel free to reach out and touch base with Alison Elder, Elder Group Tahoe Real Estate on any of your Truckee Tahoe real estate needs at Tahoe@alisonelder.com. Please visit our new website at www.eldergrouptahoerealestate.com and sign up for Alison’s monthly e-news letter, “Spotlight on Truckee – Tahoe” (sign up form located in the right sidebar).
Welcome to our Inaugural Spotlight on Truckee-Tahoe E-news.
Bank Owned & Short Sale Properties Represent 23% of Truckee Sales with Higher Lake Area Statistics
Given the unique bubble market, the counts for the Lake Tahoe and Truckee area for bank owned properties (REO’s) and short sales were relatively low compared to Q4 sales volume. In Truckee, only 7% were short sales and 16% bank owned REOs—equaling about 1 out of every 4 homes sold that were involved a bank related situation. Around the Lake, the statistics are higher with 31% of the sales involving a bank. Competition for REO properties continues. Quick decisions, cash and “as is” are key to securing a bank owned property.
The following is a snap shot of what happened in Q4 2009 in the Truckee Tahoe real estate market:
• Bank owned property sales: 29
• Short sales: 100 count
• Q4 2009 Totals: 129 homes sold via an REO or short sale position in the Truckee Tahoe market
As Banks carry short sale properties on their ledgers and attempt to avoid the liability required to carry REO properties, I am confident these properties will be listed, marketed and available for purchase and will improve the transaction processes with the Banks over the course of 2010.
In areas that have been and will continue to be hit hard, increased inventory will impact the overall square footage prices for areas including Kings Beach, Tahoma and some areas in Tahoe Vista. Remember, cash is still king when negotiating with a bank. As a seasoned agent with both short and REO transactions, I can help navigate Buyers through the changing market.
E-mail Alison Elder directly with your questions or more information about bank owned properties.
Mortgages Pick Up as the Market Anticipates an Increase in Rates in 2010
Mortgage rates continue to run into a floor at sub 5.0%. This has held true for the month of January and just into February. The big picture outlook, barring a major shift in market sentiment that drives benchmark Treasury yields lower, is that mortgage rates should move higher in months to come. While in any given day can result in small reductions in borrowing costs, the risk of rates rising is almost a guarantee. The longer term projection is if you are looking to hedge your bets for a lower rate than what you can secure today then keep an eye on the stock market.
If stocks extend recent weaknesses then you could capture the momentary drop and pick up that extra .125% savings in your interest rate. To do this you must have already have your credit package prepared with your broker and have a bit of luck. The reality though is just like in the stock market…few people truly buy a stock at its lowest cost and sell at the highest price. That said, take advantage of mortgage markets lowest levels in recent history.
For everyone that is looking to purchase a home or refinance their current home, expect a rise in mortgage rates over the next few months as the Fed exits the Mortgage Backed Securities (MBS) buying program. This is in line with recent guidance issued on Mortgage News Daily.
Don’t wait for mortgage rates to decline! 4.75 to 5.0% rates could very well be the lowest mortgage rates offered in 2010…unless there is a fundamental shift in economic horizon. If you have been waiting to refinance or to buy, get out there and start the process before you miss the boat of 5% rates
Contact Desmond Elder with Pacific Mortgage Consultants for current financing rates and to help you determine your best options.
Record Price Reductions Fuel Tahoe Property Sales!
The 4th quarter of 2009 delivered record sales and the lowest prices in years in the Truckee Tahoe real estate market and making it a prime time for Buyers as prices continue to soften. Several Elder Group clients were able to secure their dream Tahoe retreat with phenomenal pricing.
Sales increased 107% from the Q4 in 2008 overall and improved a huge 147% on the West Shore, 125% in Tahoe City and 91% in the North Shore. By the end for Q4, 100 properties closed. In the Truckee area, huge increases were also recorded. Home sales increased 80% representing huge increases in Donner Lake (up by +1,100%), Glenshire/Devonshire (up by 211%), Northstar (showing an increase of +100%) and Truckee (+77%).
Reduced square footage pricing, low financing rates and motivated Sellers are helping to propel property sales. There’s no doubt now is the time to buy your Tahoe cabin, condo or estate home – and the statistics prove it!
Record Home Sales As Compared to Q4 2008
As compared to 2008, Q4 of 2009 produced fabulous sales statistics occurring with record number of sales in areas like Donner Lake, Northstar, Glenshire and Truckee as compared to the same quarter in 2008.
In Truckee, home sale prices decreased by 8% from $619,644 to $570,132 in just one year. The Lake Tahoe area experienced a huge 21% market adjustments and slid from $637,772 to 503,379.
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