There have been 30 homes sold to date in Tahoe Donner and there are 18 homes pending sale this year. Of the 48 homes sold or pending sale, 26 are homes under $600K ,or approx. 60% of the market. The remaining sales/or homes pending sale are as follows: $600-$700K- 5 sold, 2 pending; $700k-$800K-3 sold, 4 pending; $800K-$900K-2 sold, 0 pending and $900K+-3 sold, 3 pending.
The overall average for all solds in TD this year is $282 per sq. ft with only 10 properties selling above $300 per sq. ft. Of those 10 sales 7 were smaller homes (less than 1600 sq. ft) that had unit prices that did not exceed $600K. Homes are selling for an average of 92% of the listed sales price, which is important to keep in mind when looking at the listed price of pending sales.
The biggest issue facing sellers today is the overall value of their home. The majority of sales are occurring under $600K. There are a number of reasons for that occurrence but the most important is financing. Lenders are now requiring at LEAST 20% down, so the number of buyers capable of qualifying for more expensive homes has decreased significantly. Also, while conforming loans (loans $417K or under) are readily available, jumbos loans are more scarce. Those two factors have reduced the pool of potential buyers for higher priced homes significantly, which in turn forces sellers to lower their prices in order to sell. Short sales, distress sales and bank owned sales have also impacted values. A year ago these types of sales were anomalies, but now they are occurring regularly in Tahoe Donner and have forced property values down.
Buyer's priorities have also changed. Two or three years ago the trend was toward bigger homes but today's buyer is looking for smaller more affordable homes because of their concerns over the economy. Finally, buyers are fixated on value. They want the perfect home, in the perfect location at the best value because of their concerns about buying in a declining market.
The best values in Tahoe Donner are in new construction on homes over 2700 sq. ft, bank owned properties and Short Sales. The strongest market is for homes under $600K.