If you have been looking for the bottom of the market so that you can get a good deal on mountain property, please consider this: The lot market is in the tank. One subdivision has not sold a lot in the last 18 months. While most of the lots were sold in the first releases, some still remain with the developers, which has created a large inventory. We find that a large number of the lots, now on the market, are selling below the owner’s acquisition price.
The thought at the outset was that the buyers of these lots would be able to turn the lots quickly, take a profit and leave. As is the case with many people in this critical economy, that did not happen and now the sellers are trying to recover as much of their assets as they can.
These lots are beautiful at 1/3rd of an acre to over an acre, many in picturesque locations. Most have breathtaking views of the mountains with close access to pristine lakes such as Boca, Prosser and Stampede as well as the Truckee River.
Most of the Truckee subdivisions find themselves in much the same situation, with lack of sales and declining prices. It is not unusual to find lots in the low $100s with some even lower. We don’t think we will see opportunities such as this much longer.
If you are looking for a transaction where you buy today and sell in a few months at a profit, those days are over and gone. But, if you take the longer view on a purchase, we see the market recovering and rewarding forward-thinking individuals. The question is, why and how? The main reasons for the why?: we are a drive-to area with 15 million people loving to vacation here . . . skiing, boating, hiking, mountain climbing. This summer and winter vacation spot is within 3 to 4 hours of the Bay Area and its surroundings. Truckee is still priced considerably less than Utah, Colorado and other popular resort areas. Thus, as more people find their way here, property values, along with prices, will rise to the next level. In the end, we will not have the properties to support the projected demand.
This market condition is not just limited to lots, but carries through to homes. It brings up an experience I have had all too often in my 22 years here with people who decided not to buy when the price was right, saying,” I wish I would have bought then; now, look at the prices”.