Record snowfall in February brought sales numbers in almost identical to snowmageddon February 2017. Squaw Valley reported just over 300 inches or 25 feet of snow in February this year eclipsing their biggest single month snowfall record which was January 2017. You can probably imagine the challenges of selling property with snow piled everywhere, roads that are nearly impassable at times and access in to homes is difficult at best. Earlier this week I showed a house that you had to walk up past the garage in an ice cave under the eve and finally over the icy snow bank cut stairs to the front door. Enter the house to find a broken window from ice falling off the roof and a wood stove chimney pipe that is coming off the ceiling because of the snow load pressure being put on it outside. Not very compelling for my buyer.
Our total sales for the month came in at 74 compared to 83 total sales in February of last year. February 2017 was 76. The limiting factor for last year was inventory. We were seeing essentially record low numbers of properties for sale throughout the region which kept our final sales numbers down from where they should be. With the weather factored in for this year a 10% further drop is nothing to get overly excited about. I would even go as far as to say things do appear to be picking back up already. This is not only true in our area but a recent conversation with a broker friend in Silicon Valley said their market started improving a few weeks ago too. We are having a break from mother nature so let’s see how long it lasts. Probably at least partly due to snow, inventory is remaining low. This will likely translate into lower total sales numbers for March too. If mother nature gives us an extended break we should get back to business as usual by the end of the month.
Business as usual? It seems like it has been a long time since we have truly had business as usual. Maybe the recent market flow is the new norm. There continues to be what feels like no shortage of demand. While supplies have improved over last year, it is still well below historical levels. Will we ever see those historical levels again? It sure doesn’t feel that way. Even as the spec builders continue at a strong pace the availability of new homes is almost exclusively at the upper end of the market leaving the lower end still struggling to find homes for sale. The sad part is that the lower end used to encompass the say $500K and below range. Now it seems to encompass the $700K and below range. To put it in perspective, out of the 204 currently active single-family homes listed in our local North Tahoe and Truckee region, just 33 are priced below $700K. Take it a step further and recognize just 1 of those are in the $300-$400K range, 5 are in the $400-$500K range, 14 are in the $500-$600K range and the remaining 13 are in the $600-$700K range. The first of these to offer 3 bedrooms, 2 baths and a 2-car garage is at $460K. I recently had the opportunity to show this house and it needs a ton of work.
Business as usual? It seems like it has been a long time since we have truly had business as usual. Maybe the recent market flow is the new norm. There continues to be what feels like no shortage of demand. While supplies have improved over last year, it is still well below historical levels. Will we ever see those historical levels again? It sure doesn’t feel that way. Even as the spec builders continue at a strong pace the availability of new homes is almost exclusively at the upper end of the market leaving the lower end still struggling to find homes for sale. The sad part is that the lower end used to encompass the say $500K and below range. Now it seems to encompass the $700K and below range. To put it in perspective, out of the 204 currently active single-family homes listed in our local North Tahoe and Truckee region, just 33 are priced below $700K. Take it a step further and recognize just 1 of those are in the $300-$400K range, 5 are in the $400-$500K range, 14 are in the $500-$600K range and the remaining 13 are in the $600-$700K range. The first of these to offer 3 bedrooms, 2 baths and a 2-car garage is at $460K. I recently had the opportunity to show this house and it needs a ton of work.
Food For Thought
Insurance is getting harder and harder to find and rates do appear to be climbing a considerable amount for our region. I suggest checking your policy and when it expires. Don’t wait til the last-minute thinking it is going to automatically renew. I am hearing more and more stories of policies either being straight canceled or not renewed. My local insurance contact told me this week that as of March 1 a number of large insurance companies are no longer writing new policies in our area or renewing policies. This has the potential to become a big deal and so make sure you are not caught off guard.
Long term rentals are still in high demand. I continue to see multiple postings on most days looking for long term rentals available. I think a couple things are going on. As many people are moving out of the area, they are selling homes and those homes are being purchased for full or part time residents. Our community is continuing to grow with people moving to the area as full-time residents and wanting to rent before they buy. Some of those are for even shorter term 6-month periods. Since many of those folks are coming from the bay they are used to and can afford higher rents allowing home owners to continue to push for higher rents. This is pricing out some of the locals making it harder for them to find places they can afford. If you have a property that is not being utilized and want to help our community and your finances, please let us know. You might be surprised to hear where rates are at.
Long term rentals are still in high demand. I continue to see multiple postings on most days looking for long term rentals available. I think a couple things are going on. As many people are moving out of the area, they are selling homes and those homes are being purchased for full or part time residents. Our community is continuing to grow with people moving to the area as full-time residents and wanting to rent before they buy. Some of those are for even shorter term 6-month periods. Since many of those folks are coming from the bay they are used to and can afford higher rents allowing home owners to continue to push for higher rents. This is pricing out some of the locals making it harder for them to find places they can afford. If you have a property that is not being utilized and want to help our community and your finances, please let us know. You might be surprised to hear where rates are at.
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