SECOND HOME OWNERSHIP IN TRUCKEE~TAHOE, CALIFORNIASecond-home purchases in California dropped last year, the result of lower appreciation for many primary residences as well as continued interest in out of state properties, a real estate information service reported. A total of 13,798 second homes were purchased in vacation markets in California in 2006. That was down 37.1 percent from 21,925 the year before, and the lowest number of sales in DataQuick’s second-home statistics, which go back to 1998. The peak was in 2004 when 24,916 vacation homes sold. Sales of all homes statewide declined 24.9 percent last year, from 742,715 in 2005 to 557,782 in 2006. “Many California homeowners were feeling pretty good in 2004 and 2005 when there was double-digit appreciation. It appears a lot of them felt that using built-up equity to buy a mountain cabin or a condo in the desert would be a good investment. As prices leveled off last year, interest in weekend retreats declined,” said Marshall Prentice, DataQuick’s president. The drop in second home sales was roughly the same in the three major markets: sales were off 38.4 percent in the greater Palm Springs area, 34.7 percent in Sierra mountain and foothill communities, and off 37.3 percent in the Lake Arrowhead/Big Bear area. Because most second-home communities are also primary-home communities, sales overall in these areas dropped at a more moderate pace. Some communities stand out because virtually all home buying was for second homes. These include Tahoe Vista, Carnelian Bay, Kirkwood and Olympic Valley in the Tahoe area, as well as Fawnskin and Sugarloaf in the Big Bear area. The median price paid for a second home in California was $400,000 last year, up 10.8 percent from $361,000 the year before, but well below the statewide median of $469,500 for all homes. Median prices ranged from under $150,000 in some remote desert communities to well above $1 million in Pebble Beach and Carmel. Last year also saw a reversal of a 2004/2005 surge of out-of-state buying by California residents. Californians bought 8,409 Las Vegas area homes, down 32.4 percent from 12,440 in 2005. In 2001 there were 1,824 Las Vegas area purchases by Californians. The Las Vegas numbers include all purchases by California residents, including second homes, investment properties and primary residences where the property tax bill is sent to a California address. Other areas favored by Californians include Phoenix, Lake Havasu, Tucson, Reno, Mesa, Scottsdale, Bullhead City and Incline Village, DataQuick reported. It would appear that now is the time to purchase that second home you have been dreaming about! Give me a call for up to the minute market information for Truckee~Tahoe, California. BONNIE JESSEE 530 412 3984 – Buyers Specialist!
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