People are buying homes again, and local real estate agents are breathing a collective sigh of relief.
While noting that one quarter is too small a sample size from which to draw concrete conclusions, real estate agents throughout the Lake Tahoe Basin are optimistic heading into the second quarter of 2010.
"Numbers over the last six months, beginning in October of 2009, demonstrate a stabilization in the market," said Richard Bolen, who writes www.LakeTahoeRealEstateBlog.com, covering South Lake Tahoe. Bolen referenced an about 3 percent increase in the median sales price (not including the Tahoe Keys) from March to April in the South Lake Tahoe area, the largest hike since 2007.
Bolen, a Realtor with McCall Realty, believes the jump in median sales price bodes well for the future, barring any catastrophic changes in the larger economy or drastic alterations in the local market.
"This is a positive indication for the market," he said.
However, Bolen cautioned that the number of distressed sales - or properties being sold because they are in foreclosure - may have artificially inflated the number of total sales. About 55 percent of the 146 homes sold in the first quarter of 2010 were distressed sales, he said.
Theresa Souers, president of the South Tahoe Association of Realtors, said the high number of distressed properties on the market may draw buyers to the market looking for deals. Once potential buyers investigate, they are seeing values in the non-distressed market as well, she added.
"Good reports in the media combined with low interest rates have combined to provide buyers with incentives to act now," Souers said. "Those buyers have been waiting for the market to bottom out, and reports of a strengthening market could indicate we are at the bottom now."
Souers also said that the increased number of sales in the first quarter of 2010 was a good sign.
"As inventory moves down, demand rises," Souers said. "This is a positive sign for the market."
Incline Village
While Incline Realtors have seen an increase in the number of properties sold, they have witnessed a small decline in the median price.
Chris Plastiras of Lakeshore Realty in Incline Village believes this shows that prices have come down to a level acceptable to buyers.
"The level of buying and selling activity suggests prices have reached a plateau needed to attract buyers," he said. "Values are out there and people have begun realizing it."
Plastiras said there was a decline in median sales price from 2009 to 2010, but was reluctant to draw too many conclusions.
"The problem with median sales price on a quarterly basis, is it's too small of a sample size for it too really mean anything," he said. "You sell one house toward the upper or lower end and it skews the number."
Jamie Golden of Intero Real Estate also found reason for optimism in numbers compiled for the first quarter of 2010.
"Sales are headed in the right direction," she said.
Golden said sales of higher end properties - including two lakefront properties that sold for $11.8 million and $11.5 million respectively - represents another positive sign for the market.
"We're starting to see movement in that area," she said.
Truckee
Al Colhoun, President of the Tahoe Sierra Board of Realtors, echoed the comments of his North Shore Nevada colleagues.
"We have witnessed a strong of increase of sales with a decline of the median sales price," he said.
Colhoun's organization oversees a large geographical area including the California side of Lake Tahoe's North Shore, Glenshire, Truckee and Donner Lake. Trends for each residential pocket is slightly different due to the multitude of options, Colhoun said.
"All real estate is local and each area of the Tahoe Truckee real estate market offers opportunities for buyers and sellers depending on location, property type, and the micro-demand," he said.
"The market saw a strong increase in moderately priced homes in Glenshire," said Colhoun, who mentioned historically low interest rates - from 4.75 percent to 6 percent, depending on the loan - a federal tax credit for first-time home buyers and the Truckee down payment assistance program as factors in driving up sales.
Nevertheless, Colhoun remains confident positive trends will persist.
"I believe the 2010 market will be fairly stable," he said.
