Greetings from a snowy Lake Tahoe. It’s the middle of May, and some are being to ask the question “will spring, or summer ever arrive in Tahoe?” While I don’t have the answer to that question, I can share some information on the recent Tahoe real estate market trends with you. So here’s what has been going on with our local market these days. I hope you find these 10 quick market facts interesting.
Number 1 – Did you know that in 2010 there were 22 lakefront home sales that were posted in our local TSMLS records? That’s more than when we were at the peak of the market in 2005, when we had 20 sales. So last year not only did we have more lakefront home sales transactions we also reversed a 5 year declining downward sales market trend in this high-end, luxury market.
Number 2 Approximately 1/3 of all home sales on the North Shore, Tahoe City, and West Shore areas (TSMLS Areas 1-5) were all cash sales. It’s true. One out of every 3 homes sold was a cash sale. The rest were a combination of conventional financing (63%) – bank loans and about 4% were owner financing, or other financing methods in our market.
Number 3 – Since Jan 2007 the average median home sales price for the lakeside again North Shore, West Shore, and Tahoe City (TSMLS Areas 1-5) areas has dropped a total of -40%. That means we’ve gone from an average median home sales price of $749,000 at the peak, down to an average of $447,500 for 2010.
Number 4- Since Jan 2007, the average median condo sales price for the same lakeside area has dropped almost 50%. That means at the peak of the market the average median condo sales price was $592,500 and has now dropped to an average median sales price of $300,500 in 2010.
Number 5 – Since Jan 2007, the number of home sale transaction in 2010 was up 35%. So prices are down 40%, but the number of home sale transaction is up 35%.
Number 6 – Since Jan 2007 the number of condo sale transactions is up 30%. Again, condo prices have dropped almost 50% on average, while the number of transactions is up 30% in 2010 from the peak of the market some 4 years ago.
Number 7 – One (1) out of every 5 homes sold last year had an accepted offer with in 30 days, or less, of being listed in our MLS for TSMLS Areas 1-5 (the lakeside North Shore, West Shore and greater Tahoe City areas). That tells us correct pricing is critical to a timely sale.
Number 8 – An impressive one 1 out of every 6 homes sold last year had an accepted offer with in 18 days, or less, of being listed in our MLS. Buyers are reading the same market tips that seller are being given on pricing, so if the property is priced correctly it is going, going, gone! If a home has been on the market for more than 30 days, the most likely reason is pricing.
Number 9 – Approximately 34% of the homes sold on the North Shore were distressed sales – either bank owned/foreclosed properties, or short sales. Four years ago, we didn’t even know how to track them in our MLS system.
Number 10 – Approximately 26% of the homes sold on the West Shore were distressed sales – again either bank owned/foreclosed properties, or short sales. Even the West Shore has been hard hit with distressed sales and distressed sales don’t help prices move up.
So there you have it – 10 quick market facts about the North Shore, West Shore and greater Tahoe City, California areas.
Bottom line, the market direction trend has been down on price, with an increase in the number of bank foreclosures and short sales. The over all market activity has increased, and cash buyers are finding value here based on their recent activity. The highly desirable lakefront is once again selling, and lastly, a correctly priced home is still selling quickly.