Three key topics are covered in Elder Group Tahoe Real Estate’s Q1-2010 Market Report: Pricing, Short Sales and bank owned (REO) and short sale properties. Read on!
Buying in Truckee – 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 and veteran Appraiser who spent many years leading appraisal groups for a major bank and Tahoe area lender. His sophisticated corporate algorithm programs indicate that Truckee is no longer a declining market.
Two of our Elder Group’s recent listings (mind-February and early March) went into contract in less than a week and set new highs in their respective Tahoe Donner class for the 1,300 – 1,700 and 2,250 – 2,700 square foot markets. The analytics show me the Truckee market has stabilized with signs of increasing prices. The “feel” of the market and today’s buyers demonstrate it’s changing. Low financing rates and nice product inventory gives Buyers options that align and make purchasing sense – particularly in Tahoe Donner and other resort neighborhoods such as Old Greenwood, Northstar, Lahontan and Donner Lake.
As outlined on my Market Reports, Truckee’s single family home sales over the last 26 weeks averaged $486,021. This is a 12.7% decrease from $556,604 for the prior 90 day period. New inventory has actually INCREASED in price from $541,269 and is up 10% to $595,666. The last 6 months has shown a dramatic swing in Tahoe Donner. The prior 12 week average was down $55,812 – 9.6% – over the prior 90 day period. However, new listings are UP 14.0% which equates to an increase of $80,694. This anchor market is often indicative of the health of the overall Truckee market and prices are indeed moving upward. Condo pricing has dropped a modest 8% over the prior 24 weeks with new listing climbing in price by an average of a whopping 18%!
Combining Nevada and Placer counties, under contract homes are up by 27%. Inventory is solid with nice product from which to choose and on the climb by 21.6% over the prior 24 weeks.
So, the statistics tell us the real “numbers”. The Buyers tell me the “feel” of the market. It’s indeed changing. The time to buy is truly NOW! Please contact me at info@eldergrouptahoe.com. It’s my pleasure to find your family the Tahoe retreat you’ve been dreaming about!
Please contact Alison Elder, Elder Group Tahoe Real Estate for more information about Truckee-Tahoe real estate and market information.
Today’s Biggest Challenges – Short Sales!
The biggest challenge in today’s marketplace? Short sales. That is, the Seller owes more on the property than it is worth and requires Bank involvement. Many of these properties are on the brink of foreclosure, have Sellers who are in a deficiency judgment arena with the lender (Bank) that prefers to have their note paid in full and wants as much for the property as possible – and in many instances, more than it’s worth due to the loan amounts. It’s tough on the Sellers, really hard on the Buyers and many times the Realtors are caught in a no-win situation with unclear information, timelines and a 50%/50% chance at securing the property. Thus, if you are a Buyer considering a short sale, realize that even the best of circumstances, the road may be tenuous. Definitely have a Plan B within a certain time frame, choose a Realtor who has their Distressed Property certification and be very patient. It may – or may not – pay off, unfortunately.
REO and Short Sale Truckee- Tahoe Inventory Status –
Fewer Single Family Homes Available
As you may know, there are two types of Bank related sales. The first is REO or “bank owned property”. The second is termed a “short sale”, which means the seller owes the bank more than the property is worth in today’s market.
Here’s an overview of the Truckee-Tahoe market. Bank related property inventory reduced from December, 2009 and January, 2010. In February, single family REO home inventory decreased by 6 homes and represented <20 homes or 17% of the bank related market. Since 2/1/10, 83% (96 homes) were Short Sale situations; 59 of these homes were in Bank negotiations.
In the condo market, REO properties represented 28% of our Truckee-Tahoe bank related inventory market with 72% (38 count) with 30% in contingent status. As you can see, our market has been gently hit with these types of sales although the media has led us to believe that we will see many more in all market places. It could be a very interesting summer season!
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