2009 End of Year – Newsletter & Market Report for Truckee – Lake Tahoe Real Estate

Truckee – Lake Tahoe Real Estate
End of Year 2009 Market Report

 The 2009 Market In Review & What To Expect In 2010

The year 2009 had us all holding on to our hats as we listened to the economic news nationwide. The Truckee – Lake Tahoe real estate market continued to experience a decline in average and median home selling prices, but there was a large increase in the number of homes sold. The homes in the under $450,000 price range sold quickly and often in multiple offer situations. We continued to see a rise in both “short sale” homes and bank owned homes in 2009. Approximately 26 percent of the properties (homes and land) sold during the year were distressed properties, both foreclosures and “short sales,” in the Tahoe Sierra MLS area. There were about 174 home foreclosures (bank owned properties) and 95 home “short sales” sold during 2009.

The percent of change in single family home average sales prices from 2008 to 2009 was:

-18% Tahoe Donner
- 5% Truckee (Truckee, Donner Lake, Truckee River)
-20% Donner Summit
-31% Lake Tahoe Areas (North Tahoe, Tahoe City, West Shore)
-36% Ski Resort Areas (Northstar, Squaw Valley, Alpine Meadows)
-22% Lahontan
-15% Sierra County & Plumas County

Overall, single family home average sales prices in our whole Tahoe Sierra region have decreased by about 24% since the height of the market in 2005/2006.

We remain very optimistic about the future of Truckee real estate and Lake Tahoe real estate. The Truckee and Lake Tahoe area continues to be very desirable place to live and to own vacation homes. Home prices have normalized to a point where more people can now afford to purchase homes in the area. The home buyer tax credit programs are providing some incentive for more buyers to buy. The growth in home sales in 2009 was driven by lower prices, a large inventory of homes, and low mortgage interest rates. While prices are still down and mortgage interest rates still low, we are seeing a decrease in the inventory of homes on the market for sale. This decrease in supply of homes on the market could spur sellers to raise their asking prices. We’re seeing more positive attitudes in the buyers and sellers we’re working with which increases our optimism for the real estate market in 2010.

Best wishes for a great year in 2010!

Your Realtors,
Linda & Garrison Green

The Change in Value From 2004 To 2009

The average and median sales prices for properties reached all time highs in the years of 2005 and 2006. Many of our area property appraisers are stating that home prices are pretty much back to the levels that they were at in 2003 and 2004. The chart below shows the overall average sales prices for the Tahoe Sierra region, which covers North Lake Tahoe, Truckee (including Donner Summit), and some areas of the Plumas and Sierra Counties. If you would like to see statistics for a specific area, just ask us! And, you can click here to view our Market Activity Report, by areas, for the years of 2004 to 2009:  Truckee – Lake Tahoe Real Estate Market Activity 2004 to 2009

     Average Selling Prices of Homes

Although the average selling prices of homes declined in the Truckee and Tahoe Donner areas for the first three quarters of 2009, by the 4th quarter prices began to stabilize or head upward as sales activity increased. Few homes have sold in the higher price ranges in most of the areas. Buyers are purchasing, but mostly purchasing homes in the lower price ranges. This concentration of activity in the lower end of the market ($500,000 and below) lowers the average selling prices of homes.

Note: The “All Truckee Areas” does not include properties in the ski areas and Donner Summit.  

 

Sales Activity – Number of Homes Sold

It is interesting to see that the 4th quarter 2009 number of homes sold is more than double the number of homes sold in the 4th quarter 2008. And, as you see in the chart below, the number of homes being sold has dramatically increased in the last two quarters of 2009. There are a lot more homes on the market now that buyers consider to be affordable and we are seeing many buyers for homes priced in the lower price ranges. Market activity has definitely increased in our area!

Lots/Land Market Activity

The average selling prices of lots have fluctuated significantly over the last year. Looking at our Truckee and North Lake Tahoe areas overall, the average selling prices of lots have decreased about 33% from 2008 to 2009. The Lake Tahoe areas have been hit somewhat harder by the decrease in values than the Truckee and Tahoe Donner areas.

     Dickson Realty & Area News

Founded in 1947 by Major Bill Hendricks and a group of Marine Reservists in Los Angeles, Toys for Tots has grown into a national holiday effort that rallies thousands of corporate sponsors and small businesses to fulfill the organization’s mission to provide toys to children during the holidays.  

Dickson Tips: How to Showcase Your Home for Sale

To secure a sale that showcases the true value of a house, Dickson Realty Truckee works with sellers to prepare, stage and adequately display your home for sale. According to Home Buying Institute, “staging your home can benefit you regardless of what type of real estate market you are in.” Below are ways to showcase your home so when buyers stroll through they can envision what it would be like to live there.

• Exterior: Keep your yard mowed and maintained and tend to any painting that needs managing.
• Entry: Since this is the first impression, make it a good one. Clear all clutter giving the illusion of a bigger, more welcoming entry.
• Living Room/Family Room: Paint the walls a neutral color and arrange the furniture so that the room creates a cozy and conversational area. Also remove any family photos so the potential buyer doesn’t look at the house as yours but rather a home they could see themselves in.
• Kitchen: De-clutter and keep the kitchen spic-n-span. A potential buyer does not want to see your dirty dishes or food crusted on the stove. Open the windows and turn lights on to really let your kitchen sparkle.
• Bathrooms: Update bathroom fixtures and keep the area clean.  Put nice hand towels out and decorate with a vase of fresh flowers.

Dickson Realty Truckee also offers a “to do” list for the property selling process including pricing considerations, inspections, listing the property and more.

Industry Trends: “Truckee Launches Innovative Homebuyers Program” 

 In November, the Truckee Town Council approved a new loan program designed to provide new homebuyers with low interest rates and down payment options. To assist new buyers, the Town of Truckee is offering program and informational workshops to interested buyers. Visit online to get the full rundown of the new plan and see how it can benefit you.

What’s New in Truckee?  Welcome Ritz-Carlton Highlands 

The Ritz-Carlton Highlands, Lake Tahoe opened December 11 and is the area’s first 5-star caliber hotel. Located at Northstar-at-Tahoe, the Ritz-Carlton Highlands features a 17,000 square-foot spa and fitness center, renowned San Francisco celebrity chef, Traci Des Jardins as head chef at Manzanita and 170 rooms and suites.  In addition to the first-class amenities and being nestled in the middle of some of Lake Tahoe’s most beautiful mountains the new Ritz-Carlton Highlands also offers ski-in and ski-out access, business services, 24-hour concierge service and more.  Explore this property for yourself.

Dickson’s Presence in Tahoe Donner  

The Dickson Realty Truckee office may be based in Truckee, California, but our agents represent a number of areas throughout North Lake Tahoe, Truckee, Donner Lake, Lahontan, Old Greenwood and more.  One of our most prominently represented areas in 2009 was Tahoe Donner.  Back in 2006 we represented approximately 6% of Tahoe Donner’s sellers and more than 7% of their buyers. In 2009 we represented 13% of the sellers and  14% of their buyers. This works out to a 200% increase over the last three years.