Truckee Real Estate Update

This chart shows some of the sales activity for the Truckee area this past week (September 12-18, 2010). The information was taken from the Tahoe Sierra Board of Realtors. The first few columns show active listings – number of current homes and condos. The next rows break down the numbers for active single family home listings – how many short sales, REOs, the lowest, highest & average priced home, and the average days all homes have been on the market in that area. The next column shows how many homes are currently pending and the last number shows how many homes sold in that area for this past week.

Don’t Pay Attention To the Scary Headlines Coming

This article was recently put out by The KCM Crew on September 14, 2010. The article warns against some negative headlines that will be coming out soon but contrasts the truth with what these headlines will say.

There are going to be some tough headlines written about the housing market over the next several months. They may create apprehension and in some cases outright fear. The good news is these headlines will not reflect what is actually taking place in real estate. Some in the industry say we should just ignore this media blitz of problematic stories. That would be similar to trying to ignore a growling creature lurking in the shadows in the corner of the room. Instead, we want to shine a bright light into that corner to honestly evaluate how dangerous the creature actually is.

PROBABLE HEADLINE: Sales Plummeting. Housing Market Crashing

THE FACTS: The National Association of Realtors’ Pending Sales Report is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed.

The pending sales reports covering September, October and November will be UGLY. The reason is that the houses going into contract in those months this year will be compared to the same months last year. In 2009, sales were skyrocketing as we headed toward the original termination of the Homebuyers’ Tax Credit on November 30. It will appear as though this year’s sales fell off a cliff in comparison. The headlines will be brutal.

Actually, the tax credit just pulled sales forward. Last fall and winter, pending sales dropped dramatically after November 30. Over the next six months, approximately the same number of homes will go into contract as did last year during this period. They will just be spread more evenly over the six months.

The National Association of Realtors’ Existing Home Sales Report is based on home closings. The extended tax credit expired on April 30 this year. Like last year, the tax credit pulled demand forward, this time from the summer months. That left a vacuum of homes going into contract during this past summer. That vacuum will create a lack of closed sales throughout the next few months.

Actual sales will be approximately the same as last year. However, because the tax credit moved sales into different time periods, both the pending sales reports and the existing sales reports will appear very weak over the next few months.

The Bottom Line

The headlines will be reporting ‘doom & gloom’. In reality, the market will be no worse than last year. There will be no reason to fear the creature in the corner. It will be a figment of a misinformed media’s imagination.

Weekly Tahoe Donner Update

We are continuing to see quite a bit of activity in Tahoe Donner. 7 Tahoe Donner homes went pending last week! There are now 32 homes in escrow. 1 Tahoe Donner home sold last week. It was originally listed for $427,900, on the market for just 1 day and sold for above asking price for $428,900. 2 new homes came on the market last week. There are currently 157 active single family homes listed in Tahoe Donner. The absorption rate in Tahoe Donner is now around 20% and there is just under 5 months supply of inventory remaining (6 months is considered a “normal” market). Click on the links for current listed Tahoe Donner Short Sales and Tahoe Donner REOs.

Truckee Real Estate

This chart shows some of the sales activity for the Truckee area this past week (September 5-11, 2010). The information was taken from the Tahoe Sierra Board of Realtors. The first few columns show active listings – number of current homes and condos. The next rows break down the numbers for active single family home listings – how many short sales, REOs, the lowest, highest & average priced home, and the average days all homes have been on the market in that area. The next column shows how many homes are currently pending and the last number shows how many homes sold in that area for this past week.

Market Update for Tahoe Donner

11 homes sold in Tahoe Donner last week! This is the highest number of home sales that we’ve seen in quite some time for just one week! The prices of the sold homes varied – 1 sold for $290K, 2 in the $300K range, 2 in the $400K range, 4 in the $500K range, 1 for $695K, and one for $1.1 million. The homes were on the market an average of just 45 days. The home that sold for $290K was a short sale and the rest were standard sales. 6 homes went pending last week. 27 Tahoe Donner homes are now in escrow! 13 new homes came on the market last week to make a total of 163 homes now listed. The absorption rate in Tahoe Donner is now around 17% and there is 6 months supply of inventory remaining (this is considered a “normal” market). Click on the links for current listed Tahoe Donner Short Sales and Tahoe Donner REOs.

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