Tahoe Donner Weekly Market Update

Lots of activity again this week in Tahoe Donner! 5 homes and 2 condos sold this week. All of the homes that sold this week were in the $500K-$700K range. The average list to sales price was 95% and the average days on market was 42 days (the lowest number of days on market we have seen in quite awhile!). 6 homes went into contract this week. These homes varied in price with 2 homes in the $300K range, 2 homes around $600K, and 2 homes right around $1.2 million. There are currently 22 homes in escrow in Tahoe Donner which gives the market an absorption rate of 12%. Not bad considering this “slow” market. There are still 183 single family homes, 38 condos, and 10 fractionals on the market in Tahoe Donner. This is the highest number of properties listed that we have seen all year. For single family homes alone, there is just over 8 months of inventory. Tahoe Donner continues to be a great place to purchase property. Homes hold their value well here compared to other parts of Truckee, and with all the inventory there right now, prices for homes listed are quite competitive!

Time Article – Do Not Wait to Buy

“When will the market hit bottom?” “What if home values continue to drop further?” Many people are concerned that we have not yet seen the bottom of this housing market cycle. It’s possible that we have not, but it may end up being less expensive if people purchase property now rather than trying to time the market and wait for the day it hits bottom. 

This is a great article from Time Magazine about why now is a great time to buy. It explains how even if home values drop another 10% in the next 12 months but rates go up 1/2% the consumer would still end up paying the same monthly mortgage. With the combined elements of low interest rates, low home prices and lots of inventory to choose from, this may be one of the best markets to buy in that we will see for quite awhile!

Truckee Best Buys

There are certainly some great deals out there right now! One house came on the market yesterday and it was priced so well that it was literally shown all day. I had to get in line to show the property. There were 4 cars at the property when I showed up at the house and we had to wait. More cars were lining up behind us. This was not a bank owned property, or short sale. Just a very well priced home! Here are some links to homes in the area that are (in my opinion) some of the best buys in Truckee right now…

Sierra Meadows: 11815 Silver Fir
Winter Creek: 10461 Justin Creek Road
Central Truckee: 10064 SE River Street; 10057 SE River Street
Tahoe Donner: 14291 Northwoods Blvd.

Months Supply of Inventory

This is a chart showing activity in the past year for all properties in the Tahoe/Truckee area. The properties listed includes single family homes, condos, fractionals, and lots. Most of these numbers remain unchanged in the past year. The months supply of inventory number is how many properties are listed and how long it will take for them to sell at the current rate of properties going under contract.

Period	# Properties for Sale	# Pending	# Properties Sold	Months Supply Inventory
July 2008	1,816	109	77	16.7
June 2008	1,719	79	74	21.8
May 2008	1,566	72	66	21.8
Apr 2008	1,407	67	71	21
Mar 2008	1,330	66	67	20.2
Feb 2008	1,323	79	61	16.7
Jan 2008	1,342	64	51	21
Dec 2007	1,530	49	74	31.2
Nov 2007	1,633	65	93	25.1
Oct 2007	1,749	84	112	20.8
Sep 2007	1,892	107	89	17.7
Aug 2007	1,992	109	87	18.3
July 2007	1,964	83	72	23.7

To Increase Sales, Find the Silver Lining

This is an excerpt from Daily Real Estate News on August 7, 2008 about finding the silver lining to sell a house. Some of these are pretty funny…

As the crooner Bing Crosby once sang, “Accentuate the positive. Eliminate the negative. Don’t mess with Mister In-Between.” If you’re trying to sell a house, truer words were never spoken.

The National Association of Exclusive Buyer Agents has compiled some of the descriptions that emphasize the affirmative in a booklet. Here are a few of the most memorable ones:

• Cozy bedroom. Room for a twin bed and one very small dresser

• Damp basement. Three feet of water rushing across the floor

• Easy access to everywhere. Backing up to an expressway

• Galley kitchen. A hallway with cupboards

• Gorgeous home with great potential. Refers to the crack through the middle of the foundation

• Grandma’s house. Hasn’t been improved since she moved in and it still smells like her

• Light, airy basement. You can see daylight through the cracks in the foundation

• Low-maintenance front yard. Paved over with concrete

• Move-in ready. Vacant

• Period home. Kitchen in the basement

• Quaint cottage. Frame house from the ‘50s smaller than 600 square feet

• Retro décor. Original avocado appliances and paisley vinyl floors

Source: National Association of Exclusive Buyer Agents (08/01/2008)

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