TAHOE DONNER MARKET CONDITIONS

Over the last 6 months we have been noticing a trend towards stability in Tahoe Donner real estate market (Single Family Residential). In the spring we started to see that when we ran current market analysis (CMA) that the year over year numbers we starting to move from a decreasing market to a point of stability. In our studies we have looked at the average price, median price, number of sales, and average days on market taken from the Tahoe-Sierra MLS.

In April of 2008 we saw that in the 12 months leading up to April that the average sales price was down 5%, the median sale price was down 5%, the number of sales was down 10%, and the average days on market were up 13%

As of today 08/22/08 on a year over year basis we are seeing the average sales price is up 1%, the median sales price is down 3%, the number of sales is down 3%, and the average days on market are up 14%.

What does this show us?? This review of year over year market data shows us that in the last 5 months (summer selling period) the market has been gaining momentum and has reached a point that would be considered stable. In Tahoe Donner the number of high end home sales has helped to push the average sales price into positive territory for the first time in over 18 months. The median sales price is still down year over year but has gained momentum in the last 5 months showing that the market is doing much better. The number of sales is still down 3% but when we look at the numbers we have gone from 193 sales in the 12 months leading to 08/01/07 to 188 sales as of 08/22/08. Five sales are the difference making up that 3% year over year decrease in sales which is very minimal, not to mention that just 5 months ago the number of sales was down 10%. The average days on market has gone from 93 days to 108 days in the last 12 months which is about a two week difference.

Currently there are 179 active SFR listings in Tahoe Donner and there are an additional 25 listings that are under contract at this time. This shows us that at this time the supply of inventory is in balance with the current absorption rate for this market. This is great news because it shows that supply and demand are in balance and when that occurs prices generally are stable. There is also further good news in the fact that the average and median list price are above the average and median sales prices for the last 12 months showing that the market is healthy and that prices are not currently falling at this time in Tahoe Donner.

In conclusion we feel that the Tahoe Donner market is stable with supply and demand in balance, marketing times are between 3 and 6 months, and the average list to sold discount is 4% on average and 4% on median. At this time there are no indicators showing that the Tahoe Donner market is declining.


*Independent verification of market data is recommended.