May numbers continued to show the trend of sales numbers being below the last couple of years. The overall drop was minor at less than 10%. The area by area results were mixed with the basin being up 20% while the Squaw Alpine market took a big hit down over 50%. Both greater Truckee and Tahoe Donner saw very modest decreases. The very limited inventory continues to restrict sales numbers while at the same time helping sale prices continue to climb. You might be interested to know that as of today there are 353 active single-family homes available in our area. Of those, 196 are listed below a million dollars while 157 are listed over a million dollars. If you are shopping below the million dollar mark you have limited options. If you shop above the million dollar mark you have many options and get in to the multi-million dollar range and you have numerous options.
We are just starting to see the seasonal recovery in the active inventory. It does not appear it is going to get to levels we have seen over the past few years, but it is increasing which should allow summer sales to do well though maybe a little less than the past few years. Is there relief on the horizon, doesn’t appear to be honestly. We have far more demand than we have supply and most new home construction is of the higher end spec homes or customs. Lot values continue to increase setting a higher base for the spec builders forcing them to build larger homes ultimately increasing home prices.
The migration seems to continue to build as well. Migration being the term I am using to express the ever-increasing numbers of folks moving to the Tahoe Truckee region as full time residents. There is a considerable number of 40-60 year old’s with and without children moving here to get away from the busy hustle bustle lifestyles taking place in the bay area and even the Sacramento area. This has put extra pressure on our more full time resident neighborhoods. Watching homes priced between $700K to over a million dollars sell in a matter of days in our more modestly priced neighborhoods is a real concern for established residents that are still renting or thinking of trying to move up. It used to be the competitive market topped out maybe at $600K but now it seems it tops out at maybe $800K plus.