Lake Tahoe & Truckee December 2010 Real Estate Sales Stats

85 single family homes sold during the month of December 2010. 864 total homes sold in our MLS for 2010. This is an increase from the year before with 792 single family homes selling in 2009.

The $300K-$499K price range had the most sales with 37 total homes selling last month. 17 homes sold in the $500K-$699K range and 17 homes sold for under $299K. 4 homes sold for over $1 million. The majority of the home sales were in Tahoe Donner (26 home sales) & Truckee (21 home sales). 9 short sales sold last month and 25 bank owned properties.

This information was taken from our local multiple listing service and is for the dates of December 1-31, 2010. Click on the image below for an enlarged version of the chart and more info.

Challenges of Selling an Older Home in this Marketplace

This is definitely a challenge and one very close to my heart today having two listing in an area of a large inventory of new or newer homes, “How can I sell my two listings that are both 20+ years old against all this competition? “ Yes, they are in Tahoe Donner, which is one of the most popular areas in the North Lake Tahoe region. It is the first exit off of I-80 to Truckee, has all the amenities that anyone could desire including a downhill and cross country skiing for the winter and a private beach with boat launch and picnic area at Donner Lake in the summer.  This plus equestrian facilities, fine food dining, a sports center, eleven tennis courts, golf, trails for hiking, biking  and many a fun party, Tahoe Donner offers it all.

                         

 In Tahoe Donner there are over 140 homes on the market each month with 7%-10% selling.  So how do you promote your older home listing that is on 1.5 lots, 4000+ sq. feet or has a special view when it is 20+ years old? Most buyers feel it would take $200,000 to upgrade to today’s standards against the new comparable homes where a buyer can move right in and have beautiful wood floors, granite and flagstone for their kitchen counter tops and floors and no additional work needed.  They may have less square footage but have all the necessary rooms which are new.  Most people don’t mind smaller bedrooms when they are active outside people.

 

The answer is simple but difficult for sellers to accept.  The house has to be priced right for the situation.  In today’s market when only 7% – 10% of the properties are being sold, you need to be in that 10%.  In other words, you need to price your house to sell. How? – By being the very best bargain in your price range at that time.

 

Someone will buy the 1 ½ lots or a special private view of an older home if the price makes up for the improvements needed.  Otherwise, the buyers will move on to a smaller house that doesn’t need all the extra TLC.   This is a time when it is even more important to have the right real estate agent. Talk to your professional real estate agent.  Let them do the work for you to get the best price, but to get it “sold”.

Now is the Time!

With everything happening in our financial world, real estate is still a great investment.  The meltdown of the home market has certainly increased the fear and pressure of what and when to buy, but living in Tahoe, the market will eventually go up.  For those people who had a steady 12% – 15% increase in value per year over the last 7 – 10 years are still ahead of the meltdown.  For those who purchased in the last 2-3 years, you need to buckle down, work harder and plan on at least a five year cycle.  The good news is that it is cyclical, all business goes up and down, so “hang in there”.

Now is the time to Buy.  If you are even thinking about purchasing in Tahoe, this is the time.  Prices are at the lowest that I have seen since moving up here five years ago.  Our offices of Truckee, Tahoe City and Squaw Valley have seen an increase in the number of escrows in the last two months.  Our number of closed escrows has increased over the previous two quarters.   The sale prices are the lowest we have seen.  This is a great time for first time buyers.

Having said this, the activity between $800,000 – $1,300,000 has increased as well.  There have even been multiple offers on properties in this price range.  Properties that are the best value  and priced right for the house are selling.   Some even with multiple offers.

The weather is beautiful, the colors are bursting and there has never been a better time to invest, primary or vacation, this is the time.