Truckee Real Estate 2009
This time last year we were looking at uncertain prospects for 2009. Will the recession deepen and present new challenges? Will the stock market continue to nose dive and cause Buyers to pull back even more? Have we reached the bottom? And, what about unemployment, how will that affect us? Most small and large business were puzzling over these same concerns.
The following has to do with just our little corner of the market. The first quarter of 2009 started on a positive note with volumes on a par with 2007. The second quarter was even stronger. The 3rd quarter which is usually strongest, was weak. While the 4th quarter turned out to be strong and allowed us to end the year ahead of 2007.
I don’t think anyone really has the definitive answer to why, or, how long our recovery will last. We think it is a combination of a number of things we see and some things that remain hidden.
There seems to be a built up desire for some people to be at the Lake or the mountains. A home at Lake Tahoe was listed for sale a year ago at around $4 million dollars and didn’t sell. It went into foreclosure and was sold as an REO, listed for $1.2 million. The home closed escrow roughly 3 weeks ago for $2,175 million with 25 offers. This indicates to us there is a pent up demand for lake property at bargain prices. We estimate that the cash promised by these Buyers was in the neighborhood of $35,000,000, since it’s difficult to get mortgage loans in this category. Truckee appears to be the strongest market in the Lake basin and accounts for most of the new sales.
The bail out has definitely spurred activity in other price brackets ($8,000 Fed and State down payment assistance programs). Low interest rates are another. Last week Fannie May had loans for under 5%. These low interest rates will not last forever. Many money people are predicting only until mid 2010 with some strengthening in between.
Don Schaller
Broker/Owner
Schaller Family Realtors
Dickson Realty, Truckee
dschaller@suddenlink.net
