Impact of the Economy and Foreclosures on the Truckee Real Estate Market
Tue, Jan 6, 2009 By: Alan Nicholls
Business Environment, Foreclosure, Market Statistics/Research, Truckee
Since the peak of the market in early 2006, single family homes in Truckee have dropped in value around 15% and prices are looking very similar to where they were in late 2004. We haven’t had the huge build-up in inventory or foreclosures which some areas of California have seen (except in vacant land). The performance of the stock market the last 2 months has noticeably increased the motivation of sellers, but has not yet seemed to have an impact on buyers. Or, maybe it’s more appropriate to say it has increased the motivation of some buyers, while decreasing the motivation of others, so the “net impact” on demand is unchanged.
There are a lot of people who call us asking about buying opportunities in foreclosures which helped us uncover some interesting facts about the Truckee market place:
There are 469 single family homes for sale in Truckee. Just 7 of those properties are bank owned foreclosures (known as REO’s). 20 of the homes for sale are “short sales” (homes where the asking price will not completely pay off the mortgage, so the seller needs to get approval from the bank in order to close the escrow). Most short sales are in default, but not all.
Now for the interesting part . . . There are 48 homes currently in escrow. Of those, 7 are REO’s and 16 are short sales awaiting bank approval (the process is extemely slow, frequently taking 90 days or more). Clearly buyers are very interested in, and pulling the trigger on, a high percentage of the foreclosure properties which are available. Many banks are pricing REO’s at or near fair market value, but those which are priced below market are being snapped up very quickly. If you want to get your foot in the door on a foreclosure, look to us to help you identify the best opportunities.
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Tags: foreclosure, real estate, Truckee
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