The Market Monitor
January 4, 2008
Re: Truckee Area Real Estate Market
Dear Client;
Market Overview
The year 2007 will be well remembered as a major shift in the national real estate market. While the market actually peaked in 2005 in takes many years for the market to settle out and see just where it is at. The one thing our market has not experienced relative to other areas in the country is a significant increase in inventory.
Nationally, inventory levels are at all time highs. This creates a big drag on the market. The most important number in 2008 for our market is the inventory levels. All barometers are pointing to significantly higher inventory levels. We end the year at the highest level in 6 years, December saw an inordinate number come on the market and there is a pool of sellers that will be putting their properties back on the market in 2008.
This would mean we could see further softening in prices.
For 2007 we were estimating that the number of sales would be about the same as 2006. In fact it is ending up just this way. That equates to 41% of the properties selling that were offered for sale in 2007. We would expect this percentage to actually be lower in 2008.
The lot resale market is very soft and there is no reason to think this will change for several years.
On a positive note, we just returned from the Salt Lake City area and those resort markets, Park City, Deer Valley and Ogden Valley make our properties a bargain. Our prices are substantially less especially in the land department. We saw lots of activity from interested buyers. One dynamic they have which we do not, is a more diversified buyer base. There are buyers from all over the country, Europe and even Dubai. The Delta hub in Salt Lake City certainly has a bearing.
With the Ritz coming to our area and the Hyatt underway we think we will see a more diverse buyer pool in the future.
With our warmer winter weather, even more ski resorts, lakes etc., these buyers are going to find our market to be very desirable.
Tahoe Donner
There were only 4 sales in December which even by historical standards is quite low. There were 2 lot sales, one for $199,000 that had an original asking price of $325,000 and a golf course lot on Swiss.
Lahontan
There were no home sales and there was 1 lot sale.
Old Greenwood/Grays Crossing
There were no home sales. There were 3 lot sales in Grays Crossing, all with an asking price of $300,000. The original purchase price on the lots was $550,000 to $625,000. One owner had all the lots.
.Northstar
There were no home sales and 2 condo sales in the Village, one at $2.6 million.
Glenshire/Sierra Meadows/Prosser/Donner Lake
There were 11 home sales with the highest sale at $899,000.
Squaw Valley / Alpine Meadows
There were 2 home sales in Alpine Meadows, one home sale in Squaw and 3 condo sales in the Village.
If you would like more detailed information or specific information related to your property, please do not hesitate to call.
If you know anyone that we can assist to become an owner in our beautiful area and be one of your neighbors, please let us know. If there is anything we can do to help you with your business, we would like to know.
Thank you for your support.
Sincerely,
Bob and Nancy
The Davis ♦ Yoder Realty Group
Keller Williams Boice Realty
www.truckeeinfo.com
ryoder@truckeeinfo.com
530-582-3313
