What is My Truckee Home Worth?

Understanding the Truckee Real Estate Market….

The most common questions we hear from our clients that own second homes in the Truckee real estate area, including Tahoe Donner are, “How much is my home worth and  what is the market doing?”

While prices have declined over the last few years it is important to remember that prices escalated dramatically just before the drop. Research from Wellesley College tells us that, historically, homes typically appreciated about 5% per year. During the first six years of this decade, however, average home appreciation was almost 15% per year! This type of growth is unsustainable and the current drop in prices is a market response. The market is now trying to stabilize and in the long run this will make the Truckee real estate market stronger and healthier.

It is very important to price right for today’s market. If you price your home too high, it will sit on the market and receive little, if any, attention. Meanwhile, you are making mortgage payments, paying property taxes and in many cases, HOA fees as well. One good indicator of how you should price your home for a successful sale is to look at the absorption rate or month’s supply of inventory (total inventory divided by the number of homes sold per month) in your neighborhood.

For example, on average this year we have seen 13 houses per month close escrow in Tahoe Donner and we have 158 active listings currently on the market. That means that we have a little over a 12 month supply of houses to sell in Tahoe Donner.

To put this into perspective, industry guidelines suggest that a 1-2 month supply is equal to double digit appreciation of home values. A 5 to 6 month supply is considered the balance point and on the other end of the spectrum, a 12 month supply, which is where we are currently, signals as much as a double digit depreciation. The bottom line is that you have to price with knowledge of where our market is today.

If you are thinking about selling your home, you can get started by clicking on “What is my Home Worth?” We will carefully determine an appropriate value for your home and we’ll create a marketing plan to get your property sold. We look forward to working with you to facilitate the sale of your Truckee real estate. Click here to view a variety of articles written for Sellers courtesy of Robbie and Karen Huntoon.