Alison & the Elder Group’s Real Estate Market Perspective

While real estate market conditions, like the stock market, are difficult to predict, we have a perspective based on our experience in the market. As the number of bank owned properties (REO’s) and short sales increase with the next wave of bank releases scheduled 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 living in Tahoe” window.  And, we all know that “could have, should have, would have” is only a reflection.

Please feel free to reach out and touch base with Alison Elder for any of your Truckee Tahoe real estate needs by email or phone.

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

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