Tahoe and Truckee Sales for the First Three Quarters of 2007 vs. 2006.

Regionally, we have seen a general decline in the number of sales (transactions) of Single Family Homes and Condos. Bucking the trend (hopefully setting a new one) is Incline Village where transactions and Median prices are up 15% and for Reno Condos where transactions are up by 1% and for Single Family homes in Truckee where numbers of transactions have matched the 2006 numbers. 

For Single Family Homes on the North and West Shores of Lake Tahoe:

2007 Transactions  137            vs. 2006  197             -30%

2007 Median Price  $722.500    vs. 2006  $785,000     -8%

2007 Average Price $1,187,373  vs. 2006 $1,155,914  +3% 

One bright spot is Dollar Point, where 15 or the 17 sales in the first three quarters of 2007 in Tahoe City were in Dollar Point. However, the overall rate of decline in the numbers of transactions continues year over year and until sellers are willing to meet buyers price expectations, buyers are likely to sit on the sidelines until prices reach a level that entices them to re-enter the market  

For Single Family Homes in Truckee: 

2007 Transactions  336            vs.   2006  336            Even

2007 Median Price  $631,425    vs.   2006  $687,250    -8%

2007Average Price   $815,209    vs.   2006  $854,375   -5% 

These numbers suggest that the rate of decline of transactions in Truckee may be slowing or has stopped. Using Median and Average Prices as an indication, perhaps sellers have met the prices that buyers want to pay. The numbers of transactions have matched the number in 2006. If this trend continues and moves positive in the next quarters, we could be looking at returning to a more normal market in 2008. 

What does it mean to you? 

For a buyer, your best buy may be in Truckee, where the numbers of homes for sale may start to decline. Sellers are pricing homes closer to the market and the sales we are seeing are happening in less than 90 days. This is the time to buy, because we have very early, and tentative, signs of a bottoming market. Don’t wait to see prices rise, again, before you move to action. The time is NOW to make an aggressive offer on an aggressively priced home for sale. Let your realtor guide the negotiations to get the best buy for you. 

Best buys are still available on the West and North shores. Many of the transactions were for homes on the market less than 4 months. They were well priced and went for 95% of the final Listed Price. Reductions of listed prices of over $100,000 were not uncommon, as sellers brought their expectations more in line with current conditions. These homes attracted offers and were sold to buyers who made aggressive offers. Buyers bought and are now enjoying their dream homes for drastically lower prices they would have paid just a year ago. 

For sellers, the message is clear. While the numbers of transactions are well below those seen at the height of the boom, homes are selling. Recognizing that some of the appreciation gained during the hot market of a few years ago has evaporated, sellers acting accordingly, will attract buyers who are willing to negotiate the right price for your home. 

For the complete report, email me at craig@chaseinternational.com.