Residential Properties – Single Family Homes and Condominiums
Week of: August 22nd to August 28th
Active Inventory Summary:
Active Listings: The inventory for residential properties went up slightly to 1,378 active listings in the market; 1,072 single family homes and 306 condominiums for sale. Coldwell Banker has over 17% of the active listings in the market and continues to be the market leader for listings.
REO-Short Sale Listings: Of the active listings, there are 153 properties listed as short sales, (11.1%) and 50 properties listed as REO sales, (3.6%).
Months of Inventory: Based on the current inventory and sales for the previous 30-day period, the market has over 14-months of inventory available. The inventory of homes at today’s prices continues to favor the buyer interested in an investment property, vacation home or moving up to a larger home or better location.
Sales Summary: Year-To-Date
Total Sales 2011 Vs 2010:
Total Sales: For 2011, there have been 703 residential properties sold in the market as compared to 688 for the same period in 2010 which is a year over year 2.2% increase in sales. Of the total sales in the market for 2011, 542 have been single family homes, while 161 or 23% of the sales were condominiums. I n 2010, condominiums represented 34% of the sales which is significantly higher than in 2011.
REO & Short Sales: Of the properties sold, 144 have been REO’s, (20.5%), and 107 have been Short Sales, (15.2%) which results in over 35% of the properties sold being distressed properties. In 2010 for the same period, there were 139 REO sales and 91 short sales or roughly 33% of the total sales.
Sales Price Range: For the year, there have been 470 residential properties sold priced below $500,000, 177 properties sold between $500,000 and $1,000,000 and 56 properties sold over $1,000,000.
Median and Average Sales Prices: The median sales price for properties sold year to date is $397,700 while the average sales price is $528,675. For the same period in 2010, the median sales price was $429,335 and the average sales price was $627,762 which is a (7.4%) and (15.8%) decline in price respectively year over year.
Last Week’s Sales: For the week of August 22nd a total of 21 properties sold which was 24% higher than the previous week’s sales of 17 properties. Of the properties sold last week, three (3) of the properties sold were priced over $1,000,000 with one closing at $6.4 million and another priced at $3.2 million.
Pending Sales: Currently there are 196 pending residential sales in the market which is up slightly from the previous week. Of the pending sales, 16 are short sales and 20 are REO properties which is roughly 18% of the pending sales being distressed properties.
Market Activity Summary:
Last week’s residential sales were up nicely from the previous two weeks with 21 residential properties closing. There were three properties closed over $1 million dollars and of which two were over $3 million. Last week’s sales came more in line with the average weekly sales for July and August of last year which is encouraging. In addition, there continues to be an encouraging trend as pending sales went up again last week to 196 properties reported in escrow. As it relates to pending sales, only 18% of the pending sales are distressed properties whereas we are seeing 35% of the overall sales for the year being and REO or short sale.
Median sales prices have decreased from last year by 7.4% to $397,700 while the average sales prices have decreased by 15.8% to $627,762. These price trends are one of the major factors influencing home sales to date and should bode well for the remainder of the year.
The hottest segment of the market continues to be homes priced under $500,000 as roughly 67% or 470 properties have sold in this price range. In 2010, 60% or 413 properties sold in this price range which would be expected given the drop median sales prices.
Luxury home sales, homes priced above $1,000,000, continue lag behind 2010 sales as 56 properties or 8.0%, have sold year to date as compared to 79 properties last year which is a 29% decline. For 2011, the median sales price for luxury properties is $1,615,000 while the average sales price is $2,062,595 which are almost identical to the prices for 2010 in this segment.
The mid range market, sales $500,000 to $1,000,000 are down as well from last year with 177 properties sold or 25.2% of sales as compared to 196 properties sold or 28.5% in this range in 2010.
Distressed properties, REO and Short Sales represent 35% of the sales in the market which is almost identical to the quantity of REO and Short sales in 2010. Interestingly enough while 35% of the sales are distressed properties only 14% of the active listings and 18% of the pending sales are distressed properties.
With the inventory of great residential properties on the market, homes priced at 10-year lows and some of the lowest interest rates in history, we are anticipating a strong rally towards the end of the year.
Now may be one of the best times for Buyers considering an investment in a vacation home or investment property in the Lake Tahoe-Truckee market.