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South Lake Tahoe Real Estate Activity

Spring is just around the corner, the snow is melting, the birds are chirping, and home buyers are buying!
The South Lake Tahoe Real Estate market has seen a flurry of recent activity in the single family home market. According to the South Lake Tahoe MLS, there are currently 63 single family homes in escrow. The amount of homes in escrow has nearly doubled since last months low of 37 escrows.
The price range of the homes in escrow is as follows:
Single family homes under $300,000= 14 in escrow
$300,001 to $500,000= 27 in escrow
$500,001 to $800,000= 16 in escrow
$800,001 to $1,000,000= 2 in escrow
over $1,000,000= 4 in escrow

The recent activity for single family homes in South Lake Tahoe is promising news for sellers. Sellers need to be aware that most of the recent activity has been revolving around foreclosures and homes priced lower than there competition. Pricing your home right will continue to be the most important way to get it sold!
Condos in South Lake Tahoe are still lagging big time. There are only two condos in escrow today. I think that condo sales will continue to lag until the overall economy strengthens.
Lots in South Lake Tahoe are also slow.
According to the South Lake Tahoe MLS, there are currently seven lots in escrow. Lot sales will also remain flat until new home sales pick up.
Builders need to sell there current inventory, and gain confidence before buying more land.

Although the South Lake Tahoe real estate market is showing signs of life, we are not out of the woods just yet. I just hope that the home buyers that are still on the fence, decide to act before they miss the boat, when ever that may be.

Opportuinties are Knocking!

Now that we all agree (or most of us) that the real estate market is cyclical, and prices will someday turn around, it is time to go bargain hunting!

South Lake Tahoe does not have the huge numbers of foreclosures and short sales that Sacramento or Stocton is having, but we are seeing our fair share.

I recently put a new 3400+ square foot home in escrow in which the banks asking price was $649,900! This home was previosly listed at $1,050,00 then reduced to $888,000, and then fell into foreclosure.

Most new construction houses in South Lake Tahoe are selling for between $280 to $300 per square foot. At $193.00 per square foot for nice new construction with radiant in floor heat and a driveway snow melt system, my buyers are extremely happy.

There is going to be some work involved with this foreclosure. The house has not been completely finished, and will cost around $30,000 to finish. This would bring the finished price per square food to just over $200 per square foot if my buyers paid full asking price ( I will let you know when it closes!).

The big question is: What do you think this property will be worth in 10 years? I would think that it will be worth a lot more than what my buyers paid for it!

Foreclosures in South Lake Tahoe

All foreclosures in South Lake Tahoe are not created equal!

I have a lot of clients tell me that they want to buy a “foreclosure.” There is a common misconception that just because it is a foreclosure, it is a bargain. There have been some incredible deals on foreclosures listed on the South Lake Tahoe MLS, and there are some not so great deals. The keys to foreclosures are research, preparation, and the ability to act quickly when the right opportunity arises.

Research means knowing the current inventory on the South Lake Tahoe MLS. If you do not know what homes to compare the new foreclosure to, how will you know if it is a good deal? There are always the clients that just want me to call them when a good opportunity on a foreclosure comes up. I always suggest that we go look at the current inventory, and become informed what is available in there particular price range. Having this knowledge will allow you to decide if a new foreclosure, or any new listing is a good deal, or a not so good deal.

Preparation is very important when looking for foreclosures in South Lake Tahoe. There are other buyers looking for these opportunities also! It is essential that you have been pre-approved by a lender for a loan, or that you have proof of the funds that you wish to purchase with. Make sure that the lender gives you a pre-approval or buyer-ready letter. In most cases, the bank that owns the house will require this letter to accompany the offer.

Once you know how to evaluate foreclosure in South Lake Tahoe, and have your pre-approval letter, it is time to shop! If there are not any homes currently on the South Lake Tahoe MLS that will work for you, you will be prepared when the right home hits the market! You should be using the “New Listing Notification” feature on my website bjohnson.idxcentral.net.

When I see a new foreclosure or a good opportunity on a new listing, I contact my clients in that price range as quickly as possible.

Submitting the first offer on a foreclosure can be the difference between winning, or loosing out on the deal!

Real Estate In South Lake Tahoe Is Getting Creative!

Buyers and Sellers of Real Estate In South Lake Tahoe are getting creative!

I was recently received an offer on one of my listings that has been on the market for about 180 days. After countering back and forth with four counter offers, we finally came to an agreement. This property is now in escrow, so I can not disclose the exact terms. I can discuss the creative part, which involves a trade. The buyers came in with a combination of cash, a loan, and a vacant lot as a trade. A vacant lot for a trade probably would not appeal to most sellers of homes in South Lake Tahoe. My seller does not want another lot, he already has three, but the holding cost of a vacant lot is quite a bit less than a million dollar spec home.This is the first time that I have sold a home in South Lake Tahoe that involved a partial trade for another piece of real estate, but I am sure that it will not be the last.

My seller seems happy, he will be able to pay off his construction loans which are costing him almost $6,000 a month!

I have a feeling that he will be putting the lot on the market as soon as this deal closes escrow. Sometimes you must get creative and be flexible to buy or sell real estate!

Will This Help Real Estate In South Lake Tahoe?

Will the economic $152 billion stimulus bill affect Real Estate in South Lake Tahoe?

President Bush signed the bill last week in an effort to stimulate the economy and the National real estate market. This bill includes a temporary increase in loan limits for Fannie Mae, Freddie Mac, and FHA until December 31, 2008.

According to NAR president “The loan limit increase should help 138,000 Americans purchase homes and could help 200,000 home owners refinance, and potentially keep there homes.

The FHA loan limit will increase in “High cost areas” and will increase up to 125% of the local median home price, or up to $729,750. The temporary loan limits should be published by March 14th.

This loan increase may help the South Lake Tahoe Real Estate market a little, but I do not think that it will turn it around. There is a large inventory of new homes in South Lake Tahoe that have been on the market for a long time. The loan limits should increase enough for some buyers to be able to afford one these new homes. Sellers with resale homes priced over $500,000 should also benefit from the increased loan limits.

Sellers beware! Even though I feel the loan limit increase will help some buyers in the South Lake Tahoe Real Estate market, sellers need to be realistic. Pricing your home right in the current market conditions is, and still will be crucial!

Condos in South Lake Tahoe

Condos in South Lake Tahoe received the brunt of the market slow down in 2007. Compared to the 11% decrease in volume of Single family homes in South Lake Tahoe, Condo sales volume plummeted 57% from $37,796,470 in 2006, to $12,684,000. I think part of the reduction is due to the fact that single family home prices dropped low enough to compete with the condo market. Condo prices also inflated very quickly leading up to 2005-2006 that they became very unstable in the slow 2007 real estate market.

The number of South Lake Tahoe Condos sold in 2007 decreased 39% from 51 in 2006 to 31 in 2007.

The median price dropped 9% from $389,000 in 2006 to $355,000 in 2007, and the average sales price fell 30% from $580,772 to $409,161.

Condos in South Lake Tahoe priced under $500,000 saw a 26% decrease in units sold, from 31 in 2006 to 20 in 2007. Units sold for condos priced over $500,000 fell 60% from 20 units in 2006 to 8 units in 2007.

What is the “up” side to the 2007 condo market? You may now be able to buy the condo that you were looking for in 2005 or 2006 but could not afford!