Lake Tahoe Real Estate Blog

South Lake Tahoe Real Estate Buyers Should Consider FHA Loans

January 16, 2009 by bjohnson Leave a Comment

An FHA loan is a loan that is funded by an FHA approved lending institution and insured by HUD. FHA loans are a great option because the interest rates are low even though the loan to value ratio can be high. Borrowers can put as little as 3% down! FHA loans are great for first time home buyers and buyers with less than perfect credit.

With an FHA loan the borrower is responsible for paying a mortgage insurance premium. The mortgage insurance protects the lender if the borrower defaults. The premium can cost 1.5% of the loan amount and can be financed into the mortgage. The borrower will also be responsible for an annual mortgage insurance cost of .5%. The annual mortgage insurance will only be required until the loan to value ratio reaches 78% or less.

Here are some other facts about FHA loans

The maximum mortgage payment to gross monthly income ratio is 29%
The maximum total amount of recurring monthly debt and recurring installment debt to gross monthly income ratio is 41%.
You can purchase a home in need of repairs and finance the repair costs with the mortgage. This is a great option if you are considering buying a foreclosure in South Lake Tahoe due to the fact that many of the foreclosures are in need of some kind of repair. Click here to view a list of foreclosures in South Lake Tahoe currently listed on the South Lake Tahoe MLS.
Buyers can purchase a home with as little as 3% down.
A termite report is required, and all section one and section two termite work will need to be repaired.
FHA has a loan program for condos, variable interest rate loans, and loans for making the home energy efficient.
FHA loans are for your primary residence.
Visit the HUD website for more information about FHA loans.

Currently there is a large inventory of homes for sale in South Lake Tahoe on the South Lake Tahoe MLS. An FHA insured loan may be a great resource for buyers to take advantage of a buyers market and own a piece of Tahoe!

For more information about Real Estate in South Lake Tahoe, homes for sale in South Lake Tahoe, or the South Lake Tahoe MLS, please contact Brent and Jill Johnson today!

Real Estate in South Lake Tahoe, 2009 Is The Time to Buy!

January 15, 2009 by bjohnson Leave a Comment

When you ask someone what they think about the real estate market, most people have only negative comments and feelings. I think the reason for this is all of the negative information that the media beats into our heads every day.

One statistic that caught my attention was that “one in ten homeowners is either in default or in foreclosure.” To most people that statistic sounds very bad, but is it? That statistic also means that 9 out of 10 homeowners are able to make their payments. What would you think if 1 out of 10 homeowners were poised to take advantage of the current buyers market and invest in more real estate? Sounds like good news, but it is not a doom and gloom gut wrenching ten o’clock news story

I began investing in real estate in South Lake Tahoe about 8 years ago. I was really into it. I would read investing books, articles, and talk to other investors as much as I could. I remember reading a book about a real estate investor who purchased hundreds of houses in Phoenix Arizona during the tough real estate market in the early 1980’s. I remember this well because our market was going up and up, and it was difficult for someone like me to be able to buy a bunch of properties. I thought to my self “I will never have the opportunity to buy in a buyers market like the rich investors I read about.” Boy was I wrong!

When the market started declining I thought it was terrible. I had been building spec houses and buying lots as fast as I could. I ended up loosing on the last couple of specs when the market really began to slip. I was just happy to dump them when I did. After that I was ready to change my investment plans and to adapt to the market. The buyers market that I thought I would never see was developing, and I am ready. Are you ready?

It is now a buyers market, but why are buyers still sitting on the fence? Buyers were willing to over pay in 2005 using risky sub-prime loans, but are now scared to buy when the timing could not be any better!

Here is the reason why there are “fence sitters” in a buyers market.

Fear- Buyers are scared of paying too much for a home. This makes sense, but where was the fear during the peak of the market?
Competition- It is human nature to want something that someone else has. I see it with my kids all the time. Sometimes the only reason you want a cirtain thing is so the competitor can not have it, or you just want to win the battle. I notice this when there are multiple offers on a property. A lot of times buyers will end up paying more for a property just to win. In a buyers market there is not a lot of buyer competition, so there is no sense of urgency for buyers to get off of the fence.
Lack of Knowledge about local markets – This is especially true for real estate in South Lake Tahoe. South Lake Tahoe is mostly a second home market, and is more stable than other areas. We have a lot of out of area buyers who don’t realize that our market is not as bad as most others. In 2008 foreclosures only accounted for 26% of sold homes in South Lake Tahoe. The national average was about 40%.

Why is 2009 the year to buy Real Estate in South Lake Tahoe?

NAR expects existing home sales to rise 6% to 5.3 million
NAR’s affordability index is expected to rise and stay around 128 in 2009. This means that households earning the national median income have 128% of the income needed to buy the national median-priced house.
The inventory of homes for sale in South Lake Tahoe is good, for now. There are still motivated sellers, foreclosures, and other great properties to choose from. As buyers get off of the fence, the inventory will shrink, and you may not find exactly what you are looking for.
Interest rates- Interest rates are historically low, and a 1% rise in interest rates can equal as much cost as a 10% increase in the sales price!
It is impossible to time the market- The buyers who are sitting on the sidelines waiting for the bottom will not see it until it is too late. Inventories will be lower, prices will be higher, and buyer competition will be back.

As long as buyers are looking to invest for the long term, now is the time to buy. The market has gone down, it is a buyers market, and historically the market has always gone back up!

To view the South Lake Tahoe MLS

For more information about South Lake Tahoe Real Estate please call Brent and Jill Johnson Today!

Tahoe Keys Real Estate Review

January 14, 2009 by bjohnson Leave a Comment

2008 was a tough year for Tahoe Keys Real Estate. There were a total of 32 single family homes sold in the Tahoe Keys area compared with 37 sold in 2007. The slow down of the Tahoe Keys Real Estate market shows that no sectors of real estate were spared during these hard economic times.

The 2008 Tahoe Keys Real Estate Statistics are as follows

32 Single family home sales (Down 14% from 37 in 2007)
Lowest priced sale $410,000 ($550,000 in 2007)
Highest priced sale $2,150,000 ($3,750,000 in 2007)
Average sales price $900,366 (Down 22% from $1,155,000 in 2007)
Median sales price $847,500 (Down 12% from $960,000 in 2007)
Total sales volume $28,811,720 (Down 33% from $42,735,000 in 2007
Average days on market 196

To view a graph of the statistics click on the following link 2008 Tahoe Keys Statistics

Condos in the Tahoe Keys saw the same amount of units sold, 11 in 2007 and 11 2008, but the prices were much lower in 2008

11 condos sold in 2008 (11 sold in 2007)
Lowest prices sale $239,000 ($355,000 in 2007)
Highest priced sale $555,000 ($1,450,000 in 2007)
Average sales price $422,541 (Down 33% from $628,955 in 2007)
Median sales price $435,000 (Down 26% from $590,000 in 2007)
Total sales volume $4,647,950 (Down 33% from $6,918,500 in 2007)

To view a graph of the statistics click on the following link Tahoe-Keys-Condo-Statistics.

The lower prices are great news for buyers and bad news for sellers. For more information on Tahoe Keys Real Estate, or houses on the South Lake Tahoe MLS, please call Brent or Jill Johnson today!

Tahoe Keys Real Estate in a Flood Zone?

January 14, 2009 by bjohnson Leave a Comment

The Federal Emergency Management Agency (FEMA) has made a recent change to flood maps causing some homes in the Tahoe Keys to now be considered in a flood area.

According to an article written in the Tahoe Daily Tribune written be Adam Jensen, Owners of Tahoe Keys Real Estate feel that the flood maps are very inaccurate. To view the entire article click here.

Most lenders require homeowners within a flood area to have flood insurance. When the FEMA flood maps were changed, some homeowners in the new flood area received letters from their lenders requiring flood insurance or a letter from a licensed surveyor saying that the property is not in the flood area.

Flood insurance can cost around $1,100 for a $100,000 premium. This could be a hardship for some homeowners in todays tough economy.

The new FEMA maps will be very important for Real Estate Agents and those looking to buy Real Estate in the Tahoe Keys. Purchasing a home in a flood zone will add additional insurance expenses and could be harder to sell in the future.

FEMA is currently reviewing the flood map changes due to complaints from homeowners. Click on the link view the FEMA website.

Click Here to View the Tahoe Keys FEMA Map

For questions about Tahoe Keys Real Estate or any home on the South Lake Tahoe MLS please call Brent or Jill Johnson today!

Short Sale Opportunity in South Lake Tahoe!

January 11, 2009 by bjohnson Leave a Comment

Here is a great buyer opportunity, a short sale in South Lake Tahoe! This custom Tahoe home was built by a local contractor, and has all of the bells and whistles!

Jill Johnson | Chase International South Tahoe Realty | 530-416-2626

770 Algonquin Court, South Lake Tahoe, CA

Short sale opportunity on this like new custom built Tahoe Home.

4BR/3BA Single Family House

offered at $738,500

Year Built	2005
Sq Footage	3,009
Bedrooms	4
Bathrooms	3 full, 0 partial
Floors	2
Parking	4 Car garage
Lot Size	16,000 sqft
HOA/Maint	$0 per month

DESCRIPTION

Short sale opportunity!!! A contractors home with many extra special features including a Vantage Home Intergration electrical system, Granite slab counter tops, Stainless Steel GE monogram appliances, Hickory Hardwood Flooring, Knotty Maple Cabinets, Doors and Trim, River rock fire place from floor to ceiling, 16,000 square foot large lot, 3 family rooms, 2 Gas Fireplaces and much more!!!!

see additional photos below

PROPERTY FEATURES

Central heat	Fireplace	High/Vaulted ceiling
Walk-in closet	Hardwood floor	Tile floor
Family room	Living room	Bonus/Rec room
Dining room	Breakfast nook	Dishwasher
Refrigerator	Stove/Oven	Microwave
Granite countertop	Stainless steel appliances	Washer
Dryer	Laundry area – inside	Balcony, Deck, or Patio
Jacuzzi/Whirlpool

COMMUNITY FEATURES

Garage parking

Guest parking

OTHER SPECIAL FEATURES

Vantage Home Intergration Wiring System

3 Family rooms

Granite Slab Counter Tops

Formal Dining Room

Stainless steel Appliances

16,000 square foot large lot

Quiet Location

Hickory Hardwood Flooring

Knotty Maple Cabinets, Doors and Trim

ADDITIONAL PHOTOS

Seller contact info:

Jill Johnson

Chase International South Tahoe Realty

530-416-2626

For sale by agent/broker

Equal Opportunity Housing

Posted: Feb 3, 2009, 1:20pm PST

A short sale package has already been submitted to the lender, so make your best offer! For a list of short sales in South Lake Tahoe, foreclosures in South Lake Tahoe, or any questions regarding South Lake Tahoe real estate, contact Brent and Jill Johnson today!

This listing was added to the South Lake Tahoe real estate blog by South Lake Tahoe real estate agent Brent Johnson.

South Lake Tahoe Real Estate Review for 2008

January 10, 2009 by bjohnson Leave a Comment

In December 2008 there were 26 single family homes reported sold on the South Lake Tahoe MLS. This was a 16% decrease in sales compared to the 31 solds in November. Out of the 25 sold homes, 6 were foreclosures and 3 were short sales.

The December sold statistics are as follows

26 sold single family homes
Average sales price $523,490
Median sales price $412,450
Average days on market 204
Lowest priced sale $220,000
Highest priced sale $1,890,000
Total Volume $13,610,750

Click on the following link to view the statistical charts.

december-statistical-chart

In December there were only 18 houses that went into escrow. Out of the 18 homes, 8 were foreclosures, and 4 were short sales.

Income Property in South Lake Tahoe

January 9, 2009 by bjohnson Leave a Comment

If you are looking for real estate in South Lake Tahoe to invest in, this 7 unit apartment building at the Stateline is a great income producing property!

Jill Johnson | Chase International South Tahoe Realty | 530-416-2626

3690 Primrose Rd., South Lake Tahoe, CA

Remodeled 7 unit apartment building with great income at Stateline

in South Lake Tahoe.

9+BR/8.5BA Multi-Family, 7 units

offered at $725,000

Year Built	1962
Sq Footage	5,120
Bedrooms	10
Bathrooms	8 full, 1 partial
Floors	2
Parking	Unspecified
Lot Size	5,000 sqft
HOA/Maint	$0 per month

DESCRIPTION

Extensive remodel just completed on this 100% occupied apartment building near Stateline.Recent work on all units includes a brand new comp. roof, new interior and exterior paint throughout,new appliances, new carpet and vinyl, window coverings, toilets, and much more! The units in this building are unique and show very well. Five units have fireplaces, one of the two bedroom units is a townhouse style with hand carved open beams and rockwork in the living room. This is a quality building!

see additional photos below

PROPERTY FEATURES

Central heat	Fireplace	Walk-in closet
Living room	Dishwasher	Refrigerator
Stove/Oven	Washer	Dryer
Laundry area – garage	Balcony, Deck, or Patio	Yard

COMMUNITY FEATURES

Covered parking

Laundry on-site

ADDITIONAL PHOTOS

Seller contact info:

Jill Johnson

Chase International South Tahoe Realty

530-416-2626

For sale by agent/broker

Equal Opportunity Housing

Posted: Feb 9, 2009, 10:13am PST

For more information regarding the income that this property produces please contact Brent Johnson. For more information regarding other South Lake Tahoe real estate incpme properties, houses for sale in South Lake Tahoe, or questions regarding houses on the South Lake Tahoe mls, contact Brent and Jill Johnson today!

Foreclosures in South Lake Tahoe May Be Effected by Policy Changes

January 9, 2009 by bjohnson Leave a Comment

Fannie Mae has launched pilot projects in Phoenix and Orlando intended to reduce foreclosures by pre-approving short sales, agreeing on a price and the loss it will take prior to a deal even being made. It is hoped the program will improve the popularity of short sales among real estate agents.

Property professionals initially had welcomed short sales but soon found the process to be a frustrating one-due to squabbling about the sale price and slow approval times by the mortgage companies-that often ended with no sale at all.

“Short sales have received such a bad reputation among real-estate agents that, as a portion of the overall mortgage market, they have gone down,” says Tom Popik of the research firm Campbell Communications, whose November survey of realty practitioners found that agents had to wait as long as 8.1 weeks to receive a response from the lender on a short sale. That was nearly double the 4.5 weeks the process took earlier in the year.

Fannie Mae’s pilot will focus on homes that are listed at less than the mortgage balance and carry a Fannie Mae-backed loan serviced by Countrywide Financial Corp.
If it proves successful, the concept could be expanded to other geographical areas and additional lenders. There are concerns, in the meantime, about the program’s success, with real estate agents noting that property prices could decline before the pre-approval is issued.

I think that Fannie Mae is making the right decistion to negotiate short sales over foreclosures. The foreclosure process takes time, and time is money. Foreclosure is also expensive for the lenders, the more money that the lenders loose, the worse the effect will be on the lending market.

Short sales are also a better option for the homeowner. Although a short sale does adversely affect credit, it is not as bad as loosing your home to foreclosure.

I think that Fannie Mae will find this trial policy to be effective and will soon spread it across the country. Other lenders will follow Fannies lead. They would be crazy not to. This will in effect reduce the amount of foreclosures in South Lake Tahoe. With more homes in South Lake Tahoe being sold as short sales, agents will also need to adapt and gain confidence in short sale transactions

Source: The Wall Street Journal, Nick Timiraos (01/09/09)

For more information about South Lake Tahoe Real Estate, Short Sales and Foreclosures in South Lake Tahoe, or houses on the South Lake Tahoe MLS, contact Brent or Jill Johnson.

South Lake Tahoe Real Estate May be Affected by Low Interest Rates

January 9, 2009 by bjohnson Leave a Comment

Mortgage Rates Continue Falling to Record Lows
For the fourth consecutive week, mortgage rates have fallen to all-time lows. The 30-year mortgage rates averaged 5.01 percent this week, which is a drop from last week’s 5.1 percent. Last year at this time, rates averaged 5.87 percent.

“Interest rates for 30-year fixed-rate mortgages fell for the 10th week … due in part to the Federal Reserve’s recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae,” says Freddie Mac Chief Economist Frank Nothaft.

Other rates also dropped for the week:

15-year fixed rates: dropped to 4.62 percent from 4.83 percent last week. Last year at this time 15-year mortgage rates averaged 5.43 percent.
5-year hybrid adjustable-rate mortgages averaged 5.49 percent, a drop from 5.57 percent last week.

The only slight increase in rates this week was in 1-year ARMs, which were 4.95 percent, up from 4.85 percent last week. Overall, 1-year ARMs were still down for the year from last year’s 5.37 percent.

Freddie Mac began tracking rates in 1971.

Source: The Wall Street Journal, Amy Hoak (1/09/09)

Interest rates are a very important factor to consider when timing a real estate purchase. When purchasing a $300,000 home with a $250,000 30 year fixed loan at 5.01% including tax and PMI, the payment would be $1708.17 and the total of all payments would be $614,939.65. The same scenario with a 6% interest rate would raise your payment $155.29 to $1863.46 and raise your total payments to $670,845. There are a lot of buyers looking at homes in South Lake Tahoe right now that are trying to time the bottom of the market. When rates rise to 6% it will be like paying $55,906 more for a $300,000 home using a 30 year fixed rate loan.

I think that these low interest rates will stimulate the South Lake Tahoe Real Estate market. However it is still important to buy undervalued properties from motivated sellers or foreclosures in order to offset any future declines in the market.

For more information about South Lake Tahoe Real Estate, loans, or houses on the South Lake Tahoe MLS, contact Brent or Jill Johnson.