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Gary Bolen (CRS) Lake Tahoe Real Estate Information

What, Existing Home Sales Rise? What Does it Mean?

Real Estate News is not bad, nor good, it just is.A Hint of Stability? That's good news, but there's been good news for Buyers for some time now.

(LAKE TAHOE REAL ESTATE BLOG) Sales of existing homes rose by .4% (that's "point four percent") in November, the National Association of Realtors (NAR) reported today. (See below for more on South Lake Tahoe.)

The report also indicates sales of existing homes are down 20% in the past year and are down 31% from a peak of two years ago. See full story.

Naturally, there's opinion and prognostication about this report. The talking heads are are doing what they do best... talking. Here's a few of the comments:
  • "It is still too soon to talk about stabilization in the housing market," says John Ryding, chief economist for Bear Stearns.
  • "This is not the bottom yet," saysHarm Bandholz, chief economist for UniCredit Markets.
  • "Inventories of unsold homes remain a concern," Bandholz continues, "It will take time and lower house prices to get rid of these inventories."

But what about Inventory?
The report indicates that the number of unsold homes on the market declined by 3.6%, representing a 10.3-month supply at the current sales pace, compared with 10.7 months in October.

The report further adds that inventories typically drop in the autumn. That is true, and especially here in South Lake Tahoe, where we traditionally see the most homes on the market in the summer and the least this time of year. What this means is the decline in inventory in the report means very little, if anything here in South Lake Tahoe.

South Lake Tahoe:
Lets check a few of the points above with sales results in South Lake Tahoe.

Total Number Home Sales:

  • There have been 372 existing home sales in 2007.
  • There were 438 in 2006.
  • There were 682 in 2005.

Percent Change in Total Number Home Sales:

  • From 2006 to 2007: 15% decline. (or 5% less than the national average of 20% as indicated above)
  • From 2005 to 2007: 45% decline. (or 14% more than the national average of 31% as indicated above)

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