With prices slackening in many parts of the country, home affordability has improved dramatically for many. This includes the Truckee/North Tahoe area as well!
Since January of 2008, approximately 53% of all new and existing homes sold across the country were affordable to families earning the median (national) household income of $61,500, according to the latest Housing Opportunity Index released Tuesday by the National Association of Home Builders.
This constitutes an increase of 44% compared to the first three months of 2007 with home prices the most affordable they’ve been since the three month period that ended June 30, 2004.
Factors include mortgage funding at lower rates, a slackening in pricing and a raise in the median income for the average family.
Home prices dropped about 8% compared with a year ago, (with a proportionate percentage here at Truckee and North Tahoe) however, that doesn’t mean that buyers are rushing into our local market.
Items affecting these numbers include buyer expectations. Many buyers are reluctant to act in what they perceive as falling markets; and might be continuing to wait to see how ‘low’ pricing will continue to fall, if at all, in areas such as destination resorts similar to Truckee/North Tahoe.
The ‘American’ perception that the housing market is a good investment at any point in time; and affordability is a positive one is consistent with most buyers we are seeing in this here in Truckee. While a few have suffered the consequence of buying at a very high price, most owners are quite pleased with their comfort level, even in today’s market. A relative recession proof situation exists in destination type resorts and has consistently held over the declining markets in other parts of the country.
The increased tightening of lending doesn’t factor in to most of the types of buyers and sellers consistent with the Truckee/North Tahoe area and so the numbers are slightly off the national ‘average’ for our area.
So, considering these factors, we are been seeing a very near recession proof situation for our owners and buyers in the Truckee/North Tahoe arena! Give me a call and let me show you what is currently available in our beautiful Sierra Mountains!
Bonnie Jessee 530 412 3984