Tahoe Truckee Market Report Q3

Summer Home Market “Steady As She Goes”

Ready, willing and able homebuyers from the Bay Area and abroad helped the Lake Tahoe/Truckee existing home market maintain momentum during the third quarter of 2013 with combination of multiple and all-cash offers on a limited supply of properties offered for sale, according to the MLS data.

The result?  Slightly slower sales of existing single family homes but sharply higher year over year median sales in the majority of communities included in the Lake Tahoe/Truckee region.

Nine of 11 communities reported sharply higher median sales prices compared with the third quarter a year ago – no surprise considering there were few bargain foreclosed properties available to put downward pressure on home prices.

The region’s limited inventory of homes for sale, particularly in the lower price ranges, also buoyed median prices.  In the combined Lake Tahoe/Truckee region, 503 existing, single family were listed for sale on the final day of the third quarter, down from 538 homes available for purchase at the end of last year’s third quarter and 604 homes on the market on the final day of this year’s second quarter.

Homes sales climbed back over the 300 mark in the third quarter after taking a tumble in the first half of the year.  Region wide, 317 existing, single family homes changed hands in the third quarter, up from 211 in the first quarter and 290 in the second quarter.  A year ago, 322 homes sold during the third quarter.

Looking at the Lake Tahoe area, 130 existing single family homes changed hands in the third quarter, up 48 percent from 88 homes sold in the second quarter and 6 percent from 123 homes sold during last year’s third quarter.  North Shore set the tone with 64 homes sold, up from 39 in the second quarter and up 8 percent from 59 homes sold a year ago.  West Shore following with 49 homes sold, up from 34 in the previous quarter and 45 homes sold in the third quarter of 2012.

Among those Lake Tahoe area communities that reported more than just a handful of home sales in the third quarter, median sales price were sharply higher in North Shore (+22% for the quarter and +11% for the year) and West Shore (+18% for the quarter and +14% for the year).  Squaw Valley reported an increase in sales of luxury properties, which drove its median sales price to $1,257,750, up 47 percent from the same quarter a year ago on a handful of sales, while Tahoe City’s median sales price was up 30 percent from a year ago to $632,350.

In the Truckee area, the numbers of home sales declined slightly on both quarter over quarter and year over year basis, dropping from 202 homes sold in the second quarter and 199 sold a year ago to 187 homes sold in the most recent period.  Four of the six communities included in the Truckee analysis – Donner Lake, Glenshire, Golf Course Communities and Tahoe Donner – reported slower sales on a annualized basis.  Only the Town of Truckee showed an increase in the number of homes sold year over year with 59, up from 54 homes sold a year ago.

Despite the slowdown in homes sales, the median price of Truckee area home increased 3 percent from $515,295 in the second quarter to $528,989 but was 17 percent higher than a year ago median sales price of $451,440.  Northstar reported the highest median sales price at $750,000, followed by Golf Course Communities at $710,000 for the quarter.  Other communities that continue to garner significant buyer interest were Martis Camp and Gray’s Crossing.

Looking ahead, fall typically is the peak season for home sales in the Tahoe/Truckee region.  With inventory levels low and buyer interest high, fall may be an ideal time for homeowners considering selling their home to see me to evaluate timing, pricing and marketing strategies.

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