With exactly two weeks to go until the 4th of July onslaught kicking off a fast and furious 60 day peak-season in Tahoe, inventory continues to be introduced to the market. A few of the many factors creating this scenario include the typical seasonality of our market whereby most inventory is introduced after the winter, exacerbated by this year by the extreme weather conditions that prevailed well into June, and the inevitable “shadow” inventory that remains after several years in a down market.

The ratio of new listings to sales has abated some in the past few weeks from 4:1 to a bit less than 3:1 with 164 new listings to 58 close escrows. More significantly, 70 new deals came together including 22 short sales and 48 standard; a slight decrease in the proportion of distress sales.

While this creates plentiful supply from a statistical perspective, the amount of quality inventory at compelling value remains fairly slim. The confidence of the market appears to stabilizing as most people express belief that we are near, if not firmly at, the bottom of a five year decline in real estate values. Those sellers that are willing and able (relative to debt) to price at market will no doubt benefit from showings. From there, a consumer recognizing value must then also find utility in the property – meaning a good fit their ultimate use of the property whether relative to size, layout, rental potential, setting, etc.

For example, 5007 Gold Bend, a 2-bedroom condo in the original part of Northstar, was listed on June 3rd for $366,000. This residence is far and away the finest quality 2-bedroom within this and similar complexes at Northstar after being treated to exceptionally nice remodeling from the current owners. While the majority of 2-bedrooms were clustered at $375,000, this seller wisely recognized the he could tap both the confidence of the buyer (by pricing $9k below) the group and utility by offering a beautifully modernized residence in a great setting. While the price was just a modest 3% below the competition, it stood out so significantly that a deal was procured within 8 days. Conversely, a different 2-bedroom within the same complex, in an inferior location and original condition, had been listed for $289,000 and hadn’t found a buyer in 52 days until going into escrow this past weekend.

Of course certain properties represent a strong enough value to forgo other considerations. For example, at Gray’s Crossing, lots B42, B58 and R4 all found buyers at asking prices between $34,000 - $59,000 while options remain for similar homesites within $5,000 - $10,000 remain.

Other movement of significance in the marketplace:

·         At Martis Camp, the home on #386 closed escrow for $3,250,000 by Tahoe Mountain Resorts.

·         Similarly, the home 2526 N. Summit Place in Northstar is now pending at $4,250,000 asking; buyer procured by Tahoe Mountain Resorts.

The movement of these top-quality properties can only be a beacon of optimism for the market heading into the summer season. With a strong volume of showing activity already apparent, we appear to be headed towards an improved real estate environment.