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July South Lake Tahoe Real Estate Review

July was a smokey month in Lake Tahoe due to the wildfires that were burning throughout California. South Lake Tahoe Real Estate was not exactly “smoking”, but the activity showed improvements over previous months.

According to the South Lake Tahoe MLS, there were 39 single family homes that closed escrow in July, up from 29 in June.

Out of the 39 closed escrows, seven houses were bank owned foreclosures, and one house was a short sale.

The average sales price was $479,392 and the median sales price was $395,000.

The lowest priced home was a foreclosure at 2133 Helen Ave.,which was a fixer-upper which sold for $175,000. The highest priced sold home was 1890 Meadow Vale Dr. which was a newer home that sold for $1,150,000.

There were 33 new single family escrows reported on the MLS that were opened in July. Out of the 33 new escrows, five are foreclosures and six are short sales.

The average home price for the new escrows is $549,309, and the median home price is $452,000.

The least expensive home is 3404 Freel Street for $174,900, and the most expensive new escrow in July is 550 Lucerne Way in the Tahoe Keys.

Condos in South Lake Tahoe did not show much improvement in July. There were three condos were sold, and four condos that went into escrow. 1390 Ski Run unit #6 was the only condo that was reported as a short sale.

Activity on lots in South Lake Tahoe was as slow as condos with only three sold and one new escrow. Lots with allocations in the county have lost the value of their allocations. Allocations used to increase the value of the lot up to $90,0000. Now the wait for a El Dorado County Building Allocation can be less than one year!

Buyers for Real Estate in South Lake Tahoe are continuing to target foreclosures, short sales, and under priced homes. This just magnifies the importance of sellers pricing their homes correctly to get them sold in this buyers market.

Foreclosures In South Lake Tahoe

Here is a Current list of Active Foreclosures on the South Lake Tahoe MLS.

864 San Fransisco Ave. $425,000

2638 Lipan St. $479,900

1980 Mojave St. $244,900

733 Zuni St. $340,000

7872 Tamarack Ave. $189,900

2734 Knox Ave. $250,000

3705 Montreal Rd. $360,000

3514 Blackwood Rd. $452,000

3475 S. Upper Truckee Rd. $349,900 in escrow

2737 Springwood Dr. $385,000 in escrow

2508 Cold Creek Trail $429,900 in escrow

2477 Lupine Trail $462,500 in escrow

2682 William Ave. $199,000 in escrow

2587 Kubel Ave. $249,900 in escrow

1027 Stockton Ave. $254,900 in escrow

2645 Knox Ave. $294,750 in escrow

2255 Inverness Dr., Tahoe Keys $399,000 in escrow

2244 Inverness Dr., Tahoe Keys $409,000 in escrow

2133 Helen Ave. $190,000 in escrow

Short Sales In South Lake Tahoe

Short sales are becoming more and more common on the South Lake Tahoe MLS. A short sale is when a homeowner owes more on their home than the home is worth, but their bank agrees to accept less than what is owed as “payment in full” to avoid the foreclosure process.

A lender may be willing to cut their losses with a short sale to avoid the costly and time-intensive foreclosure process. Most lenders must to have five to six times the value of their foreclosure properties on their books. This further reduces the amount of money the lender can loan out and earn interest on. Lenders would rather have that money working for them!

In order for a homeowner to qualify for a short sale they must prove that they are having a legitimate hardship. The lender will want to see a letter stating what the hardship is. The homeowner must have little or no equity in the home, usually less than 8%. Some lenders will require the homeowner to be behind on payments. Other items lenders require are the last two months bank statements on all accounts, pay check stubs, authorization to release information, and the last two years tax returns.

When purchasing a short sale in South Lake Tahoe there are some important things to remember. Once your offer is accepted by the seller, the bank could take weeks to respond. This can be very frustrating for buyers, not knowing if they will be getting the house. In most cases, short sales will be “as is” sales. The sellers probably will not have enough money to make any repairs that the buyers may ask for, and the lenders usually will not do any work. In many cases, the hassles can be worth it financially!

It is important to be knowledgeable about the short sale process so that when you write an offer on one you know what to expect. There are some great short sales and foreclosures on the South Lake Tahoe MLS. Take a look at my website bjohnson.idxcentral.net/blog to search the South Lake Tahoe MLS for some of these deals!

Mortgage Interest Rates

Here is a list of rates as of July 10th provided by Alliance Mortgage Group, Inc.

Conforming 30 Year (up to $417,000) Conforming 15 Year

6.25% -0 points 5.75% – 0 points

6.125%-.5 points 5.625%- .5 points

6.000%- 1 point 5.500%- 1 point

Agency Jumbo 30 year (up to $580,000) Agency Jumbo 15year

6.375% -0 points 6.000% -0 points

6.250% -.5 points 5.875% -.5 points

6.125%- 1 point 5.750%- 1 point

Jumbo 30 year (up to $1,500,000) Jumbo 15 year

8.000%- 0 points 7.250%- 0 points

7.875%- .5 points 7.125%- .5 points

7.750%- 1 point 7.ooo%- 1 point

5/1 Interest Only

fixed for 5, then LIBOR + 2.25%

Conforming Jumbo

6.ooo%- 0 points 6.250%- 1 point

5.875%- .5 point 5.750%- 1.5 points

5.75%- 1 point 5.500%- 2.5 points

If you are interested in purchasing real estate in South Lake Tahoe we have some of the best Mortgage Brokers around!

Associated Mortgage (530) 544-5309

Alliance Mortgage (530) 318-0730

Bank of America (530) 543-6900

Don’t Pass on Home Inspections!

Purchasing a home is the largest investment that most people will make in there lifetime. With that being said, it would be crazy not to have a termite inspection and a home inspection. Inspection costs vary depending on the size of the house. A termite inspection on a 1500 square foot home will run around $200 to $250, and a home inspection will be $300 to $400. This is a small price to pay considering how large of an investment you are about to make!

We do not have a termite problem in Tahoe, but termite inspectors also inspect for dry rot, fungus, mold, water damage, water leaks, wood condition and other structural problems that the house may have. Termite inspecters will inspect the attics, sub-floors, interior and exterior for any problems that are not visible to the untrained eyes.

A recent termite report for one of my clients reveled extensive dry rot and excessive moisture and fungus in the sub-floor area. The cost to repair the problems will be around $7,000!

It is important to find these problems out, because if left untreated, the moisture problem could be devastating. The buyer can also ask the seller to preform the repairs, or ask for a credit to help pay for the repairs as long as it is not an “as is” deal. If the repair cost is to much in an “as is” deal, the buyer can opt out of the purchase as long as the contingency period is still in effect.

Buyers be aware that when dealing with foreclosures in South Lake Tahoe, the banks will not do any work, and the sale is “as is”. With short sales, the seller often does not have the money for any repairs, and may be “as is”.

A home inspection covers just about everything in the home from the appliances, electrical system, plumbing system, windows, foundation, roof condition, smoke detectors, fans, ect. It is amazing how thorough these home inspectors are. They even find a good list of items to be addressed on a brand new home!

I hope that this blog will insure that when you have your new South Lake Tahoe home in escrow, you have a termite and a home inspection. It is well worth the cost!

June South Lake Tahoe Real Estate Review

The stock market saw its worst month since the Great Depression , but the South Lake Tahoe Real Estate market remained steady.

There were 37 new single family escrows opened in June, which was the same as in May. Of the 37 new escrows, 6 were foreclosures. The Tahoe Keys saw two foreclosures that went into escrow quickly, 2255 Inverness and 2244 Inverness. There were 29 single family homes that closed escrow in June, two of which were foreclosures. We have not seen as many foreclosures in South Lake Tahoe compared areas such as Stockton. Home owners are still having to price there homes attractively to get any activity from today’s bargain hunting home buyers.

Lot sales have remained slow with only five new lot escrows and six lot sales. There are some incredible prices on lots right now. 929 Patricia lane is a 7400 sf. flat lot with 2146 feet of coverage for only $69,000!

Condo sales were similar to lot sales with four new escrows and five condo sales. Condos have been hit hard because you can now find a single family home for the price of a condo.

There are going to be some hot buys this summer. The challenge is going to be finding qualified buyers who are willing take advantage of these great opportunities in an unstable economy.