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).
Market Trends: 3rd Quarter 2009
What a year for real estate here in Tahoe! Buyers are coming out of the woodwork now that we’ve experienced some economic stabilization. Aggressively priced homes, an emerging bank owned property market (with more to follow), owner/seller and bank short sales along with major reductions in square footage prices supported considerable buyer activity.
Tahoe real estate sales activity continues with the majority of units sold during the summer season – June through mid-September. As expected in our market, we’ve experienced a 7% decline in sales prices since mid-June. Based on statistics from 6/22/09 to 12/1/09, Nevada and Placer Counties sales prices declined from$570,208 to $530,229. (Refer to Median Price Sold Chart). The average Truckee home purchase in Q3 of 2009 was $525,719 compared to $639,863 for the same period in 2008, a decline of 18%.
Residential home sales continue! In Nevada and Placer counties alone, 272 homes sold over the summer. (Refer to Units Sold Chart). Improvements in the stock market, substantial reductions in square footage pricing and the rebounding consumer confidence support strong summer results. The luxury market experienced a substantial decline with some excellent buying opportunities in areas such as Lahontan, Martis Camp (lots), Northstar and the North Shore. Mid-market areas such as Tahoe Donner have leveled out and homes in the <1,600 square foot arena have actually increased in price. The four bedroom, larger homes in Tahoe Donner continue to sit at $280 per square foot average.
What to expect in the coming months? A new crop of homes for sale over the winter – aggressively priced, another release of bank owned (REO) properties available to the consumer, more short sales as Option A and ARM loans reset and relatively stable pricing, with a potential dip of 4 – 5% over the winter in certain markets. Of course, there is always that “deal” if one moves quickly, can close within a very short period and is a cash buyer. Today, “cash is king” as they say!
Elder Group Tahoe Real Estate watches the market carefully. Feel free to call Alison Elder to discuss your real estate goals and objectives in this very unusual market in the very beautiful Tahoe region. And, be sure to check out our Truckee Tahoe Market Reports.
Truckee Tahoe Real Estate Reports
Quarterly Market Reports
Market Share Reports
Median Sales
Luxury Trends Report
Nevada / Placer County Sales Data
Number of Units Sold: 06/22/09 – 12/06/09
Median Sold Price: 6/22/09 – 12/06/09
