When I look at the current Truckee real estate market the first thing I notice is that inventory levels are low, very low in specific neighborhoods and activity levels for well priced properties are through the roof, creating competition in the market and leading to multiple offers on the best priced homes.
If you were to look at the overall Truckee market you would see that in the last 12 months there have been 502 sales of single family homes but currently there are only 259 listings. 502 home sales represents an absorption rate of 41.8 homes per month and at that rate the current inventory shows a 6 month housing supply! This is great news for the market, finally we have come to a point where inventory levels are in line with demand, actually inventory levels are lower than demand which could possibly lead us to a more stable market in 2010.
One of the most fascinating things that I found in my research was that the number of distressed home listings (Bank Owned/REO and Short Sales) is very low, the lowest in a long time. In the last 12 months Truckee had 135 distressed home sales and today there are only 36 active distressed home listings which is amazing to me. What this means for potential home buyers is that currently you have fewer options for homes priced below the market due to the distressed sales. 135 distressed sales represents an absorption rate of 11.25 distressed sales per month, so if you apply that absorbtion rate to the current distressed inventory you will see that we only have a 3.2 month supply of distressed inventory. This is great news for the market as it further shows that we are getting closer to housing recovery in Truckee! I think that there will be more distressed listings over the winter and into the summer of 2010 but it appears that as time passes here in the Sierra we are pushing forward and possibly getting closer to recovery. Only time will tell…
Year over Year Analysis of Truckee Single Family Residences:
Average Price Down 13%, From $744K to $639K
Median Price Down 14%, From $600K to $521K
Number of Sales Up 22%, From 389 to 502
Days on Market Even, From 118 Days to 117 Days
List to Sold Discounts: Average = 6% Median 5%
If you have any questions about my analysis or if you would like me to perform a specific analysis for your Truckee or Tahoe property I would be happy to help you out. Please contact me today to discuss taking advantage of the current market or to discuss how my top rated e-marketing system will help you sell your home more quickly and for top dollar.
Best regards, Dave
David Westall, Realtor
Tahoe Riverfront Realty, Inc.
Office: 530-583-3483 x7