Alan and Norm's Truckee Update

We pride ourselves on keeping track of the "pulse" of our local real estate market, and we're certain that those of you taking the time to read our newsletter and other articles (see our blog) have an interest in knowing what is going on. The Lake Tahoe/Truckee real estate market has certainly seen a lot of changes over the last few years, which has many people asking "where are we now?"

To get a little perspective, you have to look back at the last decade. In 2000 through 2002 activity and the number of properties for sale was pretty consistent. Then, things got extreme. Starting in late 2002 and going all the way through late 2005, the market was extremely hot as the number of home sales sky rocketed while the relative number of homes for sale dwindled. Suddenly, in fall of 2005, things changed direction and activity diminished. In 2006 the number of home sales was low, but the number of homes for sale was also low as everyone tried to figure out what was going on. Then things got extremely slow in 2007 and 2008 as the number of transactions stayed down, while the number of homes for sale started to rise (though we were lucky enough not to see it get exorbitantly high). In spring of 2009 there was a noticeable pick up in the number of home sales which has sustained through current day. The number of home sales certainly doesn't approach that of the boom years, but it does outpace the bad years and is remarkably close to an average between the two.

Are we establishing a new normal or baseline? It seems like the answer is yes. In our opinion, it is very comforting to see consistent activity going on in most of our neighborhoods. There haven't been any major dips in monthly activity in our core neighborhoods since late 2008. Considering the tumultuous views and outlook about the global economy during that time, we think this is a strong statement about the value of real estate and especially the value of Lake Tahoe and Truckee real estate. Not only has activity been consistent for over a year and a half, but most of our neighborhoods are showing sustainable ratios when comparing the number of homes for sale versus the number sold in recent months. Most neighborhoods show an inventory between 6 and 8 months worth of houses for sale. This is considered very "normal" by long term national standards.

Where do we go from here? The short term outlook is for things to remain steady and consistent. The long term outlook is going to mirror the U.S. economy. As the economy grows and gains confidence, real estate investments will return to moderate appreciation.

As always, you can monitor neighborhood by neighborhood details in the "Local Market Update" below. You can also look at our newsletter archives at www.truckeedreamhomes.com. If you want specific information about properties you own, give us a call or send an email.