Attractive Prices, Mortgage Rates Drive Sharp Increase in Home Sales During Fourth Quarter

Posted by Cathy Harrington — February 4, 2010

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 Area

Lake 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 Area

Truckee 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

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

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

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

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.

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