Winter Selling Season in Tahoe
In the Truckee and Lake Tahoe markets, the winter is a slow selling season due to the holidays, inclement weather, and the fact that properties typically have 4+ feet of snow on the ground. This year is going to be different! Why? The winter selling season in Tahoe/Truckee is going to be different because prices are very low. Most properties that remain for sale during this period are listed by very motivated sellers looking to make a deal. There is a large tax incentive for first-time buyers and current homeowners. Also, interest rates are extremely low with the threat of increasing in the coming months.
Tahoe Real Estate prices are coming down
In the Lake Tahoe Basin, Truckee, and the ski resort neighborhoods, we have seen prices come down approximately 15% year over year and up to 40% from the peak of the market. This has created some amazing opportunities to purchase very desirable real estate at realistic prices. Due to these low prices, we have seen increased activity this fall as people are realizing that they can afford a second home in Tahoe. There are lots of great options, interest rates are very favorable, and now there are tax incentives. It is like the perfect storm for purchasing real estate as all the motivational factors have lined up.
The last two purchases I have worked on have had multiple offers! Yes, multiple offers! This is due to the fact that the activity in the market is focused on well-priced real estate. There are lots of people trolling the depths looking for the best-priced properties which result in multiple offers on the best priced real estate.
Lull in winter months?
Traditionally we see a lull in inventory during the winter months. This is still true but a majority of the sellers are very motivated to sell this winter. If the sellers held their list price high all summer, they are now even more motivated as it does not appear that stability is going to happen in the near term. They are scared to potentially lose another 10% of the value for their Tahoe home. This is giving buyers an advantage.
Buyers know that a 1 percentage point increase in mortgage rate on a 30-year loan is about equal to a 10% price decrease placing more power in the hands of the buyer. With motivated sellers, buyers have a better chance of getting a well-priced property for the price they want. And, with a greater potential for the seller to pay some or all closing costs. Click here to search North Lake Tahoe and Truckee real estate listings.
Federal Tax Credit
The $8,000 first time buyers Federal tax credit has been extended to April 30th, 2010. Now current homeowners that have owned for the last five years can upgrade homes and get a $6,500 tax credit. Click here to read more about the Federal tax credit program. This is a great incentive on top of the tax benefits associated with owning a home. With the tax credits in place and the current interest rates, buyers are much more motivated to buy a home.
This will be an interesting winter selling period in Tahoe. It should help strengthen the housing market as more distressed inventory leaves the market. The increase in seasonal sales will also help those involved in the housing industry by securing more jobs. This will trickle down throughout local economies.
I feel that the most well-priced homes in a given market segment will sell with a high level of activity. The homes that are priced at the market price will see little activity so pricing is more important than ever and will determine whether a home sells or not. If you’re thinking of selling your home there is hope. I have a strategy to sell your Lake Tahoe or Truckee home. Let’s talk today and put a plan together on how to make the most of the current Lake Tahoe/Truckee real estate markets.
Best regards, Dave
Contact Dave Westall, North Lake Tahoe Realtor
Interested in Tahoe and Truckee real estate and homes for sale? Dave Westall is your Tahoe Real Estate expert and is happy to answer any questions you have. Contact Dave at (530) 448-9882 or David@WestallRealEstate.com.