The North Tahoe – Truckee Market activity is continuing to be strong and moving upward in price of homes that are selling. We are still lower in inventory than we were last year at this time but the amount of listed homes is increasing. As of May 7th the number of Single Family Home listings is 14% higher than a month ago. This is due to two factors; the rate of new listing coming on the market since mid April has increased (+37%) and the rate of existing listings closing escrow has decreased slightly (-16%). However, of 306 Single Family listings 94 are in escrow, which is the same percentage as this time last month (31%). Our number of active listing and sold listings is still lower than this time last year.
What is interesting is the fluctuations of Median Price in both new listings and sold listings. The Median Price of new listings dropped 30% since mid April while the Median Price of sold homes increased 29%. I think this is due to lower priced new listings and increased sales of higher priced listings. Currently there are more homes priced under $600,000 than earlier this year but they are selling quickly. They represent only 13% of the total number of active listings and 29% of the homes in escrow.
The above statistics are on Single Family homes and do not include Condominiums. We are however seeing a similar, but not as dramatic, upward trend in the Condominium market although units sold has decreased.
Here are the year to date numbers of sold listings compared with last year of the three main categories for both Single Family homes and Condominiums.
Single Family Homes
- Total units sold + 6%
- Median Price of sold homes + 19%
- Total dollar volume of sold homes + 46%
Condominiums
- Total units sold – 13%
- Median Price of sold condominiums + 10%
- Total dollar volume of sold condominiums + 3%
Property values in the North Tahoe and Truckee market are going up. What was formally the lower end of the market (under $400,000) is shrinking and going away. The new lower end of the market is now under $500,000.
In conclusion I will repeat what I said in the end of my last market report. As home prices and interest rates go up many buyers are turning to condominiums making those prices increase. We continue to be in a seller’s market created by record low inventory and high demand. We are also now seeing multiple offers on single family homes priced under $700,000. Often those are selling over asking price.
What does all of this mean for buyers and sellers?
- Interested buyers in the lower price ranges should act quickly before they get priced out of the market. If they plan to finance their purchase they should get pre-approved before coming to look for a property and they should be ready to pay close to asking price or possibly above asking price. Buyers in the higher price ranges should also act quickly to not have to pay more in the near future. They should not expect sellers to be very willing to accept lower than asking price and they also should get pre-approved if they plan to finance.
- Property owners interested in selling should list their properties now before raising interest rates slow the market down and while low inventory gives them a bargaining advantage.
If you own a property in this area and are considering selling, contact me for a free no obligation Strategic Pricing Analysis.
If you are a potential buyer, contact me for a free no obligation Preferred Buyer Services Package.
I can be reached at 530-913-6020 or grankin@chaseinternational.com
Click on the below links to down load the last two months statistics.
Greg Rankin and Chase International do not guarantee the accuracy of this information. Statistical information on our region excluding Donner Summit and Surrounding Area is gathered from the Tahoe Sierra, Multiple Listing Service. Not all real estate transactions in our area go through MLS, therefore, this information may not be completely accurate. CalBRE License #00826938
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