Truckee – Tahoe Home Sales Experience Big Increase During the First Quarter

There is no doubt people are buying their Truckee-Tahoe dream homes and values are solid. Yet, pricing is all over the board with inconsistent results by neighborhood. Our overall inventory of available homes for sale has been low. The banks reduced their REO property inventory and have focused on reducing short sales inventory. This is a trend we expect to continue.  Equity sellers and vacation home owners are awaiting signs that the market has stabilized while buyers are preparing for our summer inventory, which has traditionally increased. Buyers are responding to the market changes and purchasing available inventory. Take a look at our Truckee Real Estate recap below.

Prices:  Elder Group Tahoe Real Estate reported in March that we are “at the bottom” and prices have stabilized through Q1 2010 and we were right on target. Truckee prices declined 6% as compared to the 4^th quarter, 17% lower than one year ago and appear to be holding and in some areas, increasing in others.  Donner Lake and Glenshire are good examples with a 44% and 13% closed sale price increases, respectively. Donner Lake increased to $625,000 from $435,000, a significant 44% due to several luxury sales. 

Home Sales:  Overall, Truckee area home sales increased 34% from a year ago with Northstar and Glenshire (133%) providing large swings over historical results.  Northstar’s price points dropped 49% and moved to an incredible $800,000 versus its prior $1,565,000. Tahoe Donner remained stable with 38 homes sold – a 12% increase and a 10% price decline versus one year ago. Tahoe Donner’s single family homes closed at an average of $502,000 versus $557,500 and days on the market dropped 24% from 130 to 106 days. Throughout Truckee’s local neighborhoods, pricing dropped 24% from $586,500 to $447,250. 

Tahoe Real Estate:  The defined “Tahoe” market includes Alpine Meadows, North Shore, Squaw Valley, Tahoe City and the West Shore. Prices increased 9% in the fourth quarter to $550,797 from $503,379 yet are down 11% from a year ago.  The North Shore home sales increased 200% with 26 homes sold in Q1 versus one year ago with 12 and prices declined a modest 5%.  Prices were hit hard on the West Shore and declined 33% from $660,500 to $445,000. 

Bank Owned and Short Sale Property Inventories:  Varying slightly day-by-day, we continue to have approximately 150 properties listed as short sales or REO’s (bank owned) with 2/3 categorized as short sales and 1/3 categorized as REO’s.  Today, Truckee has 59 short sales or REO’s listed with 22% under contract.  In the North Shore, Tahoe City, Westshore areas, there are 16 active with 19% under contract.  We are trending back to conventional sales, which may well create price increases over the summer.

Truckee Luxury Market Returns with the West Shore and Northstar Posting Many Sales

High net worth individuals are buying luxury properties!  Since January 1, 2010 an amazing 46 homes have sold for more than $1 million. In Truckee, 26 homes closed over $1 million. Lahontan real estate’s luxury community posted six sales averaging $1,621,833, closing at 95% of list price.  With two pending sales now in the upper luxury price point of over $2 million, appraisal “comps” are established. Days on the market now indicate that the Lahontan lover is back – with 435 days on average to sell a home, these last tough two years appear to have passed.

Northstar leads the Truckee area luxury real estate market with a $3 million sale on Grouse Ridge. Four home sales averaging $1.9 million closed year to date and two in escrow stabilizes this market.  The average square foot prices are still incredible values at $423 per square foot based on year to date sales.

Tahoe Donner continues to support the million dollar market with four home sales this year averaging $1,292,500, or $324 square foot, with one currently in escrow.  Despite Chapter 11 reorganization, due to be resolved by the end of June, Tahoe Mountain Resort Communities Old Greenwood and Gray’s Crossing also posted three $1 million plus sales with two in Gray’s Crossing and one in Old Greenwood. 

In the North Shore, six sales averaging almost $1.9 million closed year to date with square footage pricing at a whooping $1,055 per square foot.  North Lake Boulevard continues to offer superb values with great Lake views and 50% of the year to date sales.  Tahoe City saw two luxury sales averaging over $1.5 million with one property in escrow on day day.

Not to be left behind, the West Shore is raging.  As of today, there are three properties in contingent status, with a $16 million listing in escrow.  Year to date the West Shore saw five sales averaging $2.2 million and $973 per square good.  Yes, the luxury market has returned!

Truckee Real Estate Prices Have Reached the Bottom!

Client Buyers continually ask me about inventory supplies and pricing, waiting for the “perfect” moment to buy in Truckee. My response? “It’s time.” Prices have stabilized and appear to be on the brink of a rise in certain markets segments.  I recently met with a local appraiser who spent many years leading appraisal groups for a major bank lender in the Tahoe area. His bank developed and utilized a sophisticated algorhythm that indicates that Truckee is no longer a declining market. 

A March appraisal on one of my recent listings that went into contract in three days set a new high in its class. That particular buyer listed their cabin with me and it also pended within days at a very solid price point over the client’s target selling price. The analytics show me the market has stabilized and the “feel” of the market tells me it’s changing. Low financing rates, seller’s who are wrapping up the ski season and nice product gives Buyers options that all align.

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.