Allen,  in Oakland, CA


Asked by Allen, Oakland, CA Tue May 29, 2012

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Dave Westall’s answer
Allen, I just did some quick calculations to determine the absorption rate for the entire Truckee/N. Lake Tahoe markets and according to that info we are currently in a balanced market, but just barely. Here is how I calculated the absorption rate:

1) Number of active listings in all of Truckee/N. Tahoe (MLS Areas 1-9) = 524 Listings

2) Number of sales in the last 12 months (May 30th 2011 to May 30th 2012) = 949 Sales

3) Divide the number of sales by 12 months 949/12= 79 sales per month

4) Divide the current inventory by sales per month 524/79 = 6.6 months of inventory

Sellers Market = 1-4 months of inventory
Balanced Market = 5-7 months of inventory
Buyers Market = 7+ months of inventory

I have found that with the buyers I am currently working with that they have very few choices in a given price range. If a buyer is looking for a home that is move in ready and does not have lots of differed maintenance there are even fewer choices. As some of the agent below noted, when you do find a well priced home that is move in ready there are multiple offers and it is difficult to get your buyers into the home unless they submit a very strong offer.

If you have any questions about the current market in N. Tahoe or Truckee please feel free to contact me anytime as I am happy to help.

Best regards, Dave

David Westall, Realtor
Tahoe Riverfront Realty, Inc.
DRE# 01796995
0 votes Thank Flag Link Wed May 30, 2012
Hi Allen,

Maybe you can find the current market report below helpful.

Depending on what you are looking for, some price points are extremely hard to come by. Anything below 300k is nearly non-existent, and you will find serious bidding wars.

Next level is under 500k, and those I would say are the most balanced, though possibly a little short on supply.

Upwards of 700k is a little slower in the demand, and then there is a luxury segment whose activity has gone up since last year, but I would say supply is greater than demand other than for 2M price point, which is the lower end of lakefront market.

What price point and location were you wondering about?

Three L's of real estate location, location, location will make a difference.

530 448 6633
0 votes Thank Flag Link Mon Jul 8, 2013
At this moment, overall, there is a shortage. Over Memorial Day weekend properly priced homes were getting multiple offers. Open houses were busy. Realtors are calling each other asking about pocket listings. Buyers now want to seize the moment, not such a bad thing for sellers.
0 votes Thank Flag Link Wed May 30, 2012
Hi Allen,
There is still lots of supply, but many of the homes are still over priced. It takes help with a expert negotiator to get some of these over priced listed down to an excellent deal. It can be done, but you need help from a expert negotiator. That being said, yes we are a bit short on inventory compared with the last few years. However, if a you are willing to put in the time, and willing to look at over priced listing you can get a great value. Prices are still much lower than they were last year.
0 votes Thank Flag Link Wed May 30, 2012
Allen, supply and demand is not in balance at this time on the North or West Shore. The market is in short supply for high quality inventory at several price levels. We have 15 homes over 750 to 1000 days on the market, 50 more at 300 DOM, 30 more at 180 DOM, all of which have either been looked over or are priced too high to receive an offer that would move them to close. This winter was not well attended by home buyers since the snow fall didn't bring up a lot of winter visitors.

The last 90 days have produced 105 new listings but we haven't had a large number of buyers looking. With that said, the quality homes are experiencing mulitple offers settling over asking. That is a function of relatively low supply of quality listings at many price levels. This is actually kicking prices up even though we have a significant number of listings overall. The last several years have started with a good spring but a significant let down because of economic news through the summer. It will be interesting to see if this summer finishes with a solid up tick.
0 votes Thank Flag Link Wed May 30, 2012
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