Since the middle of 2009, the Truckee and Lake Tahoe real estate markets have seen a dramatic up-tick in activity. For the second half of 2009, the number of single family home sales in Truckee was up 53% when compared to the second half of 2008. Activity has remained strong through the first 2 months of 2010, and isn't showing any signs of slowing down.
Why are buyers pulling the trigger now? We can identify 3 main reasons:
1. There is great value available in the Truckee and Lake Tahoe real estate markets. On average, single family homes are selling for 25% less than they were at the peak of the market in late 2005 and early 2006.
2. Interest rates on home purchases are incredibly low . . . and they probably won't stay that way much longer. With the U.S. Government slowing down, and soon stopping, its program of buying mortgages in the secondary market, rates are expected to go up. Many buyers want to take advantage of interest rates while they still can.
3. Most buyers of real estate in Truckee and Lake Tahoe have expressed the belief that they are confident the U.S. economy has bottomed out and is on the path to recovery.