Market Analysis

The market was on a roll through the early part of the year with sales volume well above the previous year. That roll continued in to May and then began to slow in June and July. We are mid way through August while I write this and it also appears to be slower. To date the total volume of sales is averaging out very close to 2006. This is good news because it is showing the area continues to buck the national trend, which is lower sales volume compared to 2006. The other trend we are not seeing here is the foreclosure sales. I have seen a few but nothing like the numbers they are reporting across the country. I think it goes against what many people would think. When times are tuff the second homes are the first things to go. I believe the reality is that the second homeowner can afford their lifestyle in good times or bad. That said there is more good news, people continue to bring considerable money in to the Tahoe / Truckee area. There was a recent lake front sale on the north shore of lake Tahoe for $12,500,000 and there is a golf course home in Tahoe Donner in escrow at $2,495.000. The inventory level of homes for sale is peaking at levels very similar to last year as well. This doesn’t mean that it is impossible to sell a home right now it just means you have to be realistic about the market. The opportunities for Buyers are actually very good right now. There is an excellent selection of homes available and the sellers that need to sell are beginning to show their motivation with significant price reductions.

The market conditions worked well for Stephanie and I. We are closing on a home in Tahoe Donner that had a significant price reduction that caught my attention. To bring you all up to date on our housing situation we sold the home in Sierra Meadows to our ski lease tenants from last winter. We are moving back to Tahoe Donner to allow a better opportunity to vacation rent the home. We will simply stay at Grizzly Ranch while the Tahoe Donner home is rented. The Tahoe Donner home will be available for vacation rentals by mid September. It is a 3 bedroom, 2.5 bath plus loft home with an attached 2 car garage. It will sleep at least 8 people and will also be pet friendly. If you know of anyone that is looking for a place to stay in Truckee, please forward them our contact information