Tahoe/Truckee, CA. January 26, 2012. Anticipating a sequel to last year’s early snowfall and record snowpack, potential homebuyers flocked to the Lake Tahoe and Truckee areas in the fourth quarter of 2011. While they didn’t find much of “the white stuff,” many did discover that home sales prices are on an upward trend in several communities – a sign that the worst of the real estate downturn may be over, according to a report by the research division of Better Homes and Gardens Mason-McDuffie Real Estate based on an analysis of MLS data.
The result was a modest overall improvement in both the number of homes sold and the closing sales price of those homes compared with the previous quarter and – in the case of home sales – compared with the previous year.
In the Lake Tahoe area, 95 existing, single-family detached homes changed hands in the fourth quarter of 2011, up 6 percent from 89 in the third quarter and 3 percent higher than in the fourth quarter of 2010. Three of five Lake Tahoe-area communities registered quarter-over-quarter increases in the number of homes sold, led by West Shore and North Shore, while Tahoe City and West Shore both recorded significant year-over-year improvement.
The median price of an existing, single-family detached home declined from the year-ago period in the Lake Tahoe area but climbed 11 percent from $420,090 in the third quarter to $467,879 in the fourth quarter of this year. Four of the five communities experienced substantive quarter-over-quarter median price increases but saw fairly significant annualized declines as homebuyers focused on bargain-priced properties. West Shore was the only community to experience increases over both periods.
In the Truckee area, 194 existing homes were sold in the fourth quarter, up just 2 percent from the third quarter total but 15 percent higher than the168 homes sold during 2010’s final quarter. Four of six Truckee-area communities saw the number of home sales decline on a quarter-over-quarter basis, while five of the six showed significant year-over-year improvement. Sales doubled in Donner Lake and were up by double-digits in the Glenshire, Northstar and Truckee areas.
In the Truckee area, the median sales price increased 3 percent from $437,361 in the third quarter to $450,587 in the fourth quarter but was down 8 percent from $490,164 in the last quarter of 2010. Median sales prices rose on a quarterly and annualized basis in both the Golf Course Communities and Tahoe Donner® communities.
Overall, there were fewer sales of bank-owned homes. In the fourth quarter of 2011, banks sold 50 single-family detached homes, down 25 percent from 67 during the same period a year ago. Over the same period, banks negotiated a total of 59 short sale transactions, a 68 percent increase from 35 short sale transactions closed in the final quarter of 2010.
The inventory of homes on the market, as measured by the average number of days it took for a home to attract a contracted offer, averaged 156 days in Lake Tahoe, compared with 154 days a year ago. In Truckee, the average home was on the market for 165 days in the fourth quarter, up slightly from the third quarter and fairly significantly from 111 days a year ago.
Looking ahead, the combination of favorable interest rates and prices provides outstanding opportunities for homebuyers seeking a primary residence or a second or vacation home. According to Cathy Harry, Manager of the Better Homes and Gardens Mason-McDuffie Real Estate offices in Tahoe and Truckee, “Price and property condition remain the key factors for home sellers. Prime locations in top condition will attract both buyers and, in a growing number of cases, multiple offers.”
Fourth Quarter 2011 Housing Market Survey – Lake Tahoe AreaLake Tahoe Area
Homes
Sold
Q4/11
Homes
Sold
Q4/10
%
Change
Avg.
DOM*
Q4/11
Avg.
DOM
Q4/10
Change
11/10
(Days)
Median
Price
Q4/11
Median
Price
Q4/10
%
Change
Single-Family Detached
Homes
95
92
3
156
154
2
$467,879
$506,033
-8
Fourth Quarter 2011 Housing Market Survey – Truckee AreaTruckee Area
Homes
Sold
Q4/11
Homes
Sold
Q4/10
%
Change
Avg.
DOM*
Q4/11
Avg.
DOM
Q4/10
Change
11/10
(Days)
Median
Price
Q4/11
Median
Price
Q4/10
%
Change
Single-Family Detached
Homes
194
168
15
165
111
54
$450,587
$490,164
-8
NOTE: CHARTS REFLECT NEW Q4 2011 DATAFourth Quarter 2011 Housing Market Survey – Cities in Lake Tahoe Area
Single-Family Detached Homes
Area
Homes
Sold
Q4/11
Homes
Sold
Q4/10
%
Change
Avg.
DOM*
Q4/11
Avg.
DOM
Q4/10
Change
11/10
(Days)
Median
Price
Q4/11
Median
Price
Q4/10
%
Change
Alpine Meadows
6
8
-25
175
218
-43
$576,250
$620,000
-7
North Shore
31
39
-21
115
157
-42
$375,000
$380,000
-1
Squaw Valley
7
9
-22
168
139
29
$875,000
$1,100,000
-20
Tahoe City Area
10
6
67
223
143
80
$372,500
$782,500
-52
West Shore
41
30
37
99
112
-13
$476,000
$406,000
17
Fourth Quarter 2011 Housing Market Survey – Cities in Truckee Area
Single-Family Detached Homes
Area
Homes
Sold
Q4/11
Homes
Sold
Q4/10
%
Change
Avg.
DOM*
Q4/11
Avg.
DOM
Q4/10
Change
11/10
(Days)
Median
Price
Q4/11
Median
Price
Q4/10
%
Change
Donner Lake
12
6
100
190
163
27
$327,500
$510,000
-36
Glenshire Area+
23
15
53
66
109
-43
$308,000
$375,000
-18
Golf Course Communities++
30
25
20
161
88
73
$607,500
$515,000
18
Northstar
7
5
40
350
119
231
$977,130
$1,438,500
-32
Tahoe Donner®
58
71
-18
102
84
18
$537,500
$520,000
3
Truckee
64
46
39
118
101
17
$315,000
$362,500
-13
* 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. + 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 Better Homes and Gardens Mason-McDuffie Real Estate
Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. In 2010, the company was named the 17th largest real estate services firm in the nation (RIS Media), and Number One in the San Francisco East Bay (SF Business Times). The company provides comprehensive solutions to home buyers and sellers, and handled 7,790 transactions in 2011, generating $2.94 billion in sales. Better Homes and Gardens Mason-McDuffie Real Estate is independently owned and operated and includes joint ventures with partners Highland Partners in Piedmont and Montclair, Wine Country Group Realtors in the North Bay, and Tri-Valley Realty in Pleasanton-Hopyard and Ruby Hill. The organization is comprised of more than 1,400 sales professionals in 33 offices. For more information, go to www.bhghome.com