Tahoe/Truckee, Calif. – January 27, 2010 – Homebuyers seeking a second home or investment property took advantage of low interest rates and favorably priced bank-owned and short-sale properties across the Lake Tahoe-Truckee region during the fourth quarter of 2009, fueling a sharp increase in sales of existing single-family detached homes compared with earlier quarters, according to a report by the research division of Prudential California Realty based on an analysis of MLS data.
In the Lake Tahoe area, fourth-quarter home sales jumped 107 percent from the same period of 2008 and improved by 147 percent on an annualized basis in the West Shore community, 125 percent in Tahoe City and 91 percent in the North Shore area. All told, 95 Lake Tahoe-area homes changed hands in the fourth quarter compared with 77 home sales recorded in the third quarter and 46 in the fourth quarter of 2008. In the Truckee area, detached home sales increased by 80 percent from the fourth quarter of 2008 behind sharply higher year-over-year sales in Donner Lake (+1,100%), the Glenshire Area (+211%), Northstar (+100%) and Truckee (+77%). For the quarter, 212 homes were sold in the Truckee area, up from 169 in the third quarter and 118 a year ago.
Across the region, bank-owned properties and short-sale offerings continued to dominate sales and dilute home prices. For the quarter, approximately 8 percent of completed transactions in Tahoe City and about 7 percent of transactions in Truckee involved a short sale. Sales of bank-owned properties were more pervasive: Around the greater North Lake area, 23 percent of closings involved REO properties, while 16 percent of all closed sales in the Truckee area were bank-owned.
The result? The median price of a home sold in the Lake Tahoe area during the fourth quarter tumbled 21 percent from $637,772 a year ago to $503,379. In the Truckee area, the median sales price slid 8 percent from $619,644 a year ago to $570,132 in this year’s fourth quarter. The most active properties were those priced in the $300,000 to $500,000 range, where multiple offers were common. Activity in the higher price ranges was extremely limited as potential buyers retreated to the sidelines.
“For the foreseeable future, the Tahoe-Truckee region will continue to offer a wide range of properties to homebuyers in the position to take advantage of some of the best prices in years on owner-occupied, vacation or investment properties,” says Cathy Harry, manager, Truckee and Tahoe offices of Prudential California Realty. “Sellers will continue to experience stiff price competition in the form of bank-owned homes.”
First-time buyers seeking a primary residence will benefit from the federal government’s extension of the $8,000 tax credit for sales contracts initiated before April 30, 2010, and qualified homeowners may be motivated to trade up by a $6,500 credit now available to them.
Fourth Quarter 2009 Housing Market Survey – Lake Tahoe AreaLake Tahoe Area
Homes
Sold
Q4/09
Homes
Sold
Q4/08
%
Change
Avg.
DOM*
Q4/09
Avg.
DOM
Q4/08
Change
09/08
(Days)
Median
Price**
Q4/09
Median
Price
Q4/08
%
Change
Single-Family Detached
Homes
95
46
107
120
156
-36
$503,379
$637,772
-21
Fourth Quarter 2009 Housing Market Survey – Truckee AreaTruckee Area
Homes
Sold
Q4/09
Homes
Sold
Q4/08
%
Change
Avg.
DOM*
Q4/09
Avg.
DOM
Q4/08
Change
09/08
(Days)
Median
Price**
Q4/09
Median
Price
Q4/08
%
Change
Single-Family Detached
Homes
212
118
80
116
116
0
$570,132
$619,644
-8
Fourth Quarter 2009 Housing Market Survey – Cities in Lake Tahoe Area
Single-Family Detached Homes
AreaHomes
Sold
Q4/09
Homes
Sold
Q4/08
%
Change
Avg.
DOM*
Q4/09
Avg.
DOM
Q4/08
Change
09/08
(Days)
Median
Price**
Q4/09
Median
Price
Q4/08
%
Change
Alpine Meadows
4
3
33
163
81
82
$1,016,500
$1,572,500
-35
North Shore
44
23
91
138
139
-1
$450,000
$515,000
-13
Squaw Valley
1
1
0
6
249
-243
$963,000
$795,000
21
Tahoe City Area
9
4
125
152
141
11
$565,000
$557,500
1
West Shore
37
15
147
143
172
-29
$510,000
$650,000
-22
Fourth Quarter 2009 Housing Market Survey - Cities in Truckee Area
Single-Family Detached Homes
AreaHomes
Sold
Q4/09
Homes
Sold
Q4/08
%
Change
Avg.
DOM*
Q4/09
Avg.
DOM
Q4/08
Change
09/08
(Days)
Median
Price**
Q4/09
Median
Price
Q4/08
%
Change
Donner Lake
12
1
1,100
146
168
-22
$815,000
$396,000
106
Glenshire Area+
28
9
211
114
131
-17
$437,050
$375,000
17
Fourth Quarter 2009 Housing Market Survey - Cities in Truckee Area
Single-Family Detached Homes (continued)
Area
Homes
Sold
Q4/09
Homes
Sold
Q4/08
%
Change
Avg.
DOM*
Q4/09
Avg.
DOM
Q4/08
Change
09/08
(Days)
Median
Price**
Q4/09
Median
Price
Q4/08
%
Change
Golf Course Communities++
31
22
41
96
76
20
$638,000
$618,000
3
Northstar
6
3
100
128
119
9
$887,500
$2,875,000
-70
Tahoe Donner®
80
52
54
101
106
-5
$610,750
$638,000
-4
Truckee
55
31
77
109
97
12
$452,500
$450,000
1
* Days on market is the number of days a property was listed on the market until it went under contract at its final listing price. This may not reflect previous listings.
**The median home price for the entire county is the weighted mean of median home prices of areas within the Tahoe and Truckee areas.
+ Glenshire Area includes communities of Glenshire,Cambridge Estates, Devonshire Estates and Rolling Hills Ranchos.
++ Some listings in Golf Course Communities overlap with Tahoe Donner® and Truckee.
Data are sourced from multiple listing services and are deemed reliable but not guaranteed.
All percentages rounded to nearest whole number.
About Prudential California Realty:
Founded in 1887 as Mason-McDuffie Real Estate and transitioning to the Prudential name in 1997, Prudential California is a leading innovator of real estate technology solutions to its agents and clients. Prudential California Realty provides comprehensive real estate solutions when buying, selling and owning a home with more than 7,600 transactions and $2.8 billion in annual sales for 2009. The company offers consumers full MLS access to home listings through its website www.PruRealty.com. Owned by David Cobo and Ed Krafchow, the organization cumulatively has more than 1,800 agents and 36 offices. Prudential CA/NV is an independently owned and operated member of the Prudential Real Estate Affiliates.