This graph paints a rather grim picture for average and median pricing, but I think the highlight would have to be that overall Tahoe Donner sales volume is up 16.7% from the height of the market in 2006. Even more interesting is the fact that sales volume has been up for the last 3 years as buyers are taking advantage of motivated sellers, historically low pricing, and low interest rates.
In addition to the chart above I completed a 12 month analysis of Tahoe Donner single family residence (SFR) sales as of 02/20/2012 and here are my findings:
Average Price: Down 8%, from $580.4K to $534.3K
Median Price: Down 4.7%, $523.5K to $499K
Number of sales: Up 1%, from 222 sales to 224 sales
Days on Market (DOM): Down 4%, from 92 days (average) to 87 days
Overall these statistics show that sales volume has remained relatively flat (last 3 years) while average and median pricing continue to fall. Currently there are 61 Single Family Homes for sale in Tahoe Donner which translates to a 3.26 month supply of inventory (224 sales in the last 12 months/12 months=18.66 sales per month, 61 active listings/18.66 sales per month= 3.26 month supply of inventory).
“Normal Market” conditions exist when the Absorption Rate is 5-7 months.
“Seller’s Market” conditions exist when the Absorption Rate is lower. (1-4 month)
“Buyer’s Market” conditions exist when the Absorption Rate is higher. (7+ months)
Please keep in mind that during the winter months Tahoe Donner inventory levels are at their lowest for the year and in my opinion we are still in a buyer’s market due to the number of distressed sales (Short Sales and REO’s) in the Tahoe Donner market. Over the last 12 months there have been 38 distressed sales in Tahoe Donner accounting for 17% of all sales. These distressed sales are having a negative effect on pricing and are the main reason for decreasing Tahoe Donner sales prices.
My clients purchased their home on in November of 2009, so I performed an analysis of the Tahoe Donner market from the sale date versus 02/20/2012:
Average Price: Down 12.9%, from $613.2K to $534.3K
Median Price: Down 12%, from $566.7K to $
Number of Sales: Up 9%, from 204 sales to 224 sales
Days on Market: Down 22%, from 111 days to 87 days
If you are interested in having me perform a market analysis for your Truckee/Lake Tahoe property please feel free to call or email me to discuss as I would be interested in helping you out.
Tahoe Riverfront Realty, Inc.
150 Alpine Meadows Rd
Alpine Meadows, CA 96146
P: 530-448-9882 | F: 530-583-6312