Is there another Housing Bubble?
Solid numbers for November say NO!
November showed solid sales numbers for the Tahoe/Truckee real estate market. November comparative transaction volume was 10% above 2018, yet 16% below 2017. The standout market segment for the month was the Tahoe Basin
Let’s look at the breakdown by region:
- Tahoe Basin increase by 45%
- Squaw / Alpine increased by 20%
- Greater Truckee decreased by 15 %
- Tahoe Donner increased by15 %
Greater Truckee Market
Home/condominium sales in the greater Truckee market year to date, show a decrease of nearly 10% compared to last year. This is at least partly due to tight inventories in the local neighborhoods and a slowing of million plus dollar home sales in the ski/golf resort communities.
It is a difficult task to unwrap the National and Local markets. It seems everyone has an opinion and no crystal ball. What we do know is the following:
- housing shortage continues
- inventories are still below historical levels
- softening of the high-end market
- interest rates remain low
- home owners insurance by region can be difficult to obtain.
Overall, economists feel there is enough strength in the market to shrug off the talk about another housing bubble in the foreseeable future.
What does this all mean for the coming year for the Tahoe/Truckee Market
My thoughts are this; it all points to a continued stable and sustainable market. Appreciation will likely continue at the lower end of the market. At the low-end, supply remains tight with less than 1/3rd of all listings priced below $750K. At the high end, over 1/2 of listings are $1M or higher. To give perspective, just over 50% of sales for 2019 have been under $750K while less than 30% of sales have been over $1M.
Tahoe Truckee Homes family continues to grow:
We have added another amazing person/agent to our Tahoe Truckee Homes family, Nicole Folks. With a love and appreciation for the Tahoe Truckee lifestyle, Nicole along with her husband Chris, a private corporate pilot, moved to Truckee in 2010 to raise their 3 kids. Upon moving here Nicole immediately immersed herself in our community by volunteering for a number of local organizations. Nicole, a 13-year veteran in the real estate industry has an excellent knowledge of our region and market. Please welcome Nicole Folks.
-Matt Hanson, Broker
2017 Realtor of the Year
Tahoe Sierra Board of Realtors