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.

Alpine Appraisal Group, Inc. Helps Fight Muscular Dystrophy

On June 27th, 2008 Alpine Appraisal Group, Inc. and Dave Westall teamed up to help the Muscular Dystrophy Association (MDA) and Jerry's Kids at the 2008 MDA Lockup at the Fifty Fifty Brewing Co. in Truckee, CA. Dave was placed in "jail" at the Fifty Fifty Brewery and had to raise bail in order to be released.

The event was very successful and the 50 participants were able to raise $27,000.00 that will be used by the MDA to send kids with Muscular Dystrophy to summer camp, help with specialized equipment, support sessions, and research. With the help of friends, family, and business associates Dave Westall was able to raise $980.00 to help the MDA. Dave would like to thank the 27 people who donated for their generosity and kindness.

If you are interested in learning more about the MDA and Jerry's Kids or would like to help those with Muscular Dystrophy please visit: www.mda.org

Federal Reserve on Hold

The Federal Reserve left interest rates unchanged yesterday at their regularly scheduled Federal Open Market Committee meeting. The decision left the benchmark Federal Funds Rate steady at 2%, making the prime rate at 5.00%. This signaled the end of interest rates cuts that started in September 2007 when prime was 8.25%. The Fed said, "Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased."

After eight months of easing rates in response to a weakening economy and financial market turmoil, the Fed has adopted a wait and see mode to assess economic conditions and inflation during the second half of this year. In the statement the Fed acknowledged that softer labor market conditions, an ongoing housing downturn and high energy prices pose downside risks to growth going forward. The committee believes that inflation will moderate over time but indicated upside risks to inflation and inflation expectations exist given rising energy and commodity prices. Therefore, the Fed’s risk assessment remains roughly balanced. Further developments will determine the timing and direction of monetary policy from here.

This morning’s May existing home sale number rose 2% to reach 4.99 million units (annual rate) as the lower housing prices started to lure buyers back into the market. The supply of homes for sale still remains about twice the level of that in a stable market.

Oil rose by more than $3 a barrel following reports that Libya may cut production and that crude oil could hit $170 a barrel this summer. Stocks tumbled after Goldman Sachs downgraded General Motors and Citibank as the market fears the credit market write downs will extend the economic slump.

Welcome

Welcome to the Alpine Appraisal Group, Inc. Blog. We are going to be providing users with up to date market information, company news, real estate news, and show off some fun activities that AAG participates in. Stay tuned for the latest from AAG, Inc. Please feel free to contact us with any questions, comments, or items you would like to see discussed in our new blog.

--Dave Westall

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