Tahoe Real Estate Down but Not Out
Posted by Katie Shaffer — January 6, 2009
Chase's Annual Report Shows Quarterly Increase Despite Overall Annual Decline
LAKE TAHOE, NV - (January 6, 2009) – Lake Tahoe's real estate market wrapped up 2008 with lower home prices and a decrease in sales from 2007, however the figures indicate an improvement over third quarter numbers, according to Chase International's year-end report. The report also showed slight annual increases in sales and value in both Truckee and Reno-Sparks.
The report, released last weekend, shows the average home price in Lake Tahoe is down 26 percent to $1,018,085 and the median is down 17 percent to $697,793. There was a 16 percent decline in homes sold (693 from 828 in 2007) with overall volume dropping 36 percent to $568,841,387. The figures show improvement from third quarter, which reported a sales volume of $439,591,967, indicating significant sales for what is normally a slower time in the market due to the holidays.
"Real estate will always be a good long-term investment," Sue Lowe, corporate vice president for Chase International, said. "The savvy buyers understand that there is nothing but opportunity, opportunity, and opportunity in the market place right now. These buyers are taking full advantage of the incredible deals."
The South Shore had the lowest decreases of the entire lake signaling a bottom in site. The units sold were down only six percent while volume sold was down 20%. Homes sold for less than $1 million stayed steady, while homes selling for more than a million were down 55 percent from 2007. The average price of homes in South Lake Tahoe is $489,219 (a 15 percent decrease from 2007 but an increase from third quarter's $487,801). The median is $405,000 (down eight percent from 2007).
Sales on Lake Tahoe's East Shore fared well in the lower end of the market with homes sold for less than a million dollars jumping a staggering 33 percent while the sale of million-dollar homes was down 39 percent. The average price of a home in this upscale section of the lake dropped 46 percent to $1,178,702 and the median is down 40 percent from this time last year to $625,000. Sales volume on the East Shore was down 48 percent, but units sold were down only four percent.
Tahoe City like the South Shore, California side showed smaller decreases than their neighboring Nevada towns. The average price was only down four percent from this time last year to $1,107,926 and the median is down 13 percent to $650,450. Homes selling for less than $1 million were down 14 percent and homes sold for more than $1 million were down 34 percent. Volume was down 22 percent and units sold were down 19 percent.
Incline Village saw the largest decline with a 53 percent decline in sales volume, with the average home price falling 20 percent to $1,296,494. However, the median home price saw a modest three percent decline to $1,110,720. Homes sold for less than a million were down 36 percent and homes sold for more than a million were down 44 percent.
Homes priced above $1 million continue to take the biggest hit from the economy. Sales were down 43 percent around Lake Tahoe while homes sold for less than a million were down only six percent. Truckee, however, continues to thrive, as the sale of million-dollar homes was up 11 percent from 2007. Homes sold for less than a million were down ten percent. The average price of a home in Truckee is down only two percent from 2007 to $795,313 and the median is down four percent to $619,000. Overall sales volume in Truckee was down nine percent.
Reno and Sparks also saw some stabilization and improvement in certain area for 2008. Homes sold for less than a million were up five percent in Reno, and units sold were up three percent again indicating that the savvy buyer is taking advantages of these great deals. Overall volume was down 19 percent, as were homes sold for more than $1 million (45 percent). The average price of a home in Reno is $329,417 (down 22 percent) and the median is $261,345 (down 19 percent).
Sparks saw a 12 percent jump in units sold but with an eight percent decrease in sales volume. Homes that sold, priced below a million were also up 12 percent. No homes were sold for more than $1 million, compared to two in 2007. The average price of a home in Sparks is $256,744 (down 18 percent) and the median is $237,000 (down 17 percent).
Overall sales volume of condos was down 41 percent around Lake Tahoe, with a 24 percent drop in units sold. Condos sold for less than $500,000 were up nine percent from 2007 while those sold for more than $500,000 were down 53 percent. The average price is down 15 percent to $518,892 and the median is down 20 percent to $384,500. South Lake Tahoe showed the biggest improvement in condo sales with a 16 percent increase in volume and 42 percent increase in units sold (primarily from a 78 percent jump in units sold for less than $500,000).
The sales volume of condos in Truckee was down 21 percent but the average price is up 11 percent to $910,905 and the median is up one percent to $557,500. Units sold were down 29 percent. The average price of a condo in Reno-Sparks is $166,544 (down 26 percent) and the median price is down 31 percent to $143,990. Sales volume was down 57 percent from 2007 and units sold were down 42 percent.
Headquartered in Lake Tahoe, Nevada since 1986, with eight offices in the region (Zephyr Cove, Glenbrook, Incline Village, Tahoe City, Squaw Valley, Truckee, South Lake Tahoe and Reno) and one in London, England, Chase International and its exclusive affiliations handle a large share of the country's property. A recognized leader in the world of real estate, Chase International has once again taken the reins of cutting edge technology by launching www.ChaseNation.com, the first interactive social networking website created by a real estate brokerage as a vehicle for direct interaction with consumers online.
With more than 170 professional Realtors® boasting an array of industry certifications and the highest volume per sales agent in the area, Chase International successfully represents homes at all price levels. For more information about Chase International visit www.chaseinternational.com.