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New Addition To My Family!

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There is a New Addition to My Family!

It has been a while since my last blog. I have been busy hanging out with the newest addition to my family. On April 2nd, my wife Jill and I became the proud parents of our third daughter. Kayla Marie Johnson was born at Barton Memorial Hospital at 9:00 p.m.. Kayla weighed 6.2 pounds, and was 17 inches long.

I do not want to brag, but Kayla is perfect! She has been sleeping well, hardly ever cries, and has captured my heart! I am a very happy Dad!

Jill has decided to take six weeks off from the office, but she will be doing some work from home.

I am now back at work full time, and I am ready for the spring South Lake Tahoe Real Estate season!

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March South Lake Tahoe Real Estate Review

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March was a great month in South Lake Tahoe. We enjoyed some great Spring like weather, Daylight Savings, St. Patrick’s Day, and Easter all in the same month! As the birds and squirrels came out to enjoy the warmer weather, some home buyers also  came out to take advantage of  some great deals!

According to the South Lake Tahoe MLS, there were 34 single family homes that sold in March. The least expensive sale was  a one bedroom home at 2613 Fountain that sold for $165,000. The most expensive home sold was 3597 Mackedie Way which sold for $1,180,000. Out of the 34 single family homes sold in March, 11 of them were foreclosures, and a few others were short sales.

Another great March statistic is that there were five new construction homes that sold. New home sales have been very slow, and it is great to see some activity in that area. I believe that if new home sales continue to improve, land sales will follow. Builders still need to sell there existing new homes before they decide to buy more land.

Land sales showed a slight improvement in March, but are still quite  slow. There were four lots that sold in March. Two of the lots that sold were in the Angora fire area that had homes which had burned down. The lots in the burn area which had homes that burned down, include building allocations which are good until the end of the year. Water and sewer hook up fees are also included with the burn lots, which will save over $12,000 for the owner or builder. Only one lot went into escrow in March, which was also a “burn lot.”

Condo sales are another sector that showed a slight improvement, but are still struggling. There were only three condos in South Lake Tahoe that sold in March, but five condos went into escrow. My guess is that when the Tahoe Keys thaws out, and summer starts, we will see some more activity with the Tahoe Keys Condos.

I am looking forward to seeing what the South Lake Tahoe Real Estate market will be like in April. I hope that real estate activity continues to improve, and that the overall economy will stabilize. I am also looking forward to another great summer in South Lake Tahoe, I can not think of anywhere that I would rather be!

3/16 to 3/22 Real Estate Review

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The South Lake Tahoe Real Estate market experienced another solid week of buyer activity similar to the previous week. The foreclosures located at 1472 Glen Eagles and 2002 Cherokee that I predicted would sell very quickly, both had multiple offers, and are now in escrow.

There was a total of seven single family houses that went into escrow reported on the South Lake Tahoe MLS.

2002 Cherokee St. (foreclosure)

$384,900

1472 Glen Eagles (foreclosure)

$394,500

1301 Pine Valley (foreclosure)

$664,000

1139 Herbert Ave. #c (condo)

$298,500

3519 Pinecrest

$379,000

914 Lapham

$399,950

489 Tahoe Keys Blvd. (condo)

$269,000

There were eight single family homes sold last week that were reported on the South Lake Tahoe MLS.

2695 Springwood Drive

Asking Price $289,900

Sold Price $262,000

1261 E. San Bernadino St.

Asking Price $399,000

Sold Price $399,000

1024 Iron Mountain

Asking Price $1,050,000

Sold Price $937,500

2521 Osborne St.

Asking Price $259,900

Sold Price $245,000

2175 Royal St.

Asking Price $359,000

Sold Price $315,000

2293 Eloise Ave. #C

Asking Price $498,000

Sold Price $434,000

1536 Chippewa St.

Asking Price $699,000

Sold Price $639,000

3463 Beaver Brae Dr.

Asking Price $464,900

Sold Price $505,000

There were 24 price reductions with the largest reduction being  645 Zuni which is a new home reduced to $899,000 from $995,000!

New single family listings were up to 16 from 12 the previous week.

The South Lake Tahoe Real Estate market experienced another solid week of buyer activity during the first week of Spring. We will see if this activity continues through the Summer.

What’s the deal with our local agencies?

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Our Local  regulatory agencies need to be more knowledgeable and capable of answering  questions correctly! I would like to share a recent experiance with the El Dorado County Building Department. Last week I went to the County Building department to get a price for extending  a permit for a client of mine. I usually like to have my clients accompany me for things like this, but this particular client lives in New York. The lady at the front desk told me that the price would be $111. I gave my client the price, and I told him that I would cover the fee. The next day I went to renew the permit and pay the fee. There was a different lady at the counter  (I do not want to mention any names) told me that the fee is really $368! Realizing that I  would be the one responsible for the fee, I explained what I was told the day before by the first lady. Of course the first lady did not remember the price she told me. I decided to bite my tongue and to pay the fee. The very next day I received a phone call from the building department. They now say that yet another mistake was made, and that I owed them another $700! According to them I was charged 2002 fees, not 2008 fees. After a heated conversation they decided not to bill me for the difference.

I  personaly do like all of the employees that work at the County Building department, but there needs to be a better understanding of the importance of  distributing accurate information!

Weekly South Lake Tahoe Real Estate Review

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The South Lake Tahoe Real Estate market experienced another strong week bringing the total amount of open single family home escrows to 63.

During the week of 3/9 to 3/15 there were 8 new escrows reported on the South Lake Tahoe MLS.

The asking prices of the pending houses ranged from $349,000 up to $1,683,000.

There were also seven sold single family houses. The reported sales were as follows:

2877 Oakland

Asking Price $780,000

Sales Price $$737,000

Days on Market 278

3436 Janet

Asking Price $268,900

Sales Price $275,000

Days on Market 42

2440 Cougar Trail

Asking Price $449,000

Sales Price $399,000

Days on Market 335

1016 Golden Bear

Asking Price $399,000

Sales Price $400,000

Days on Market 83

712 Seneca

Asking Price $389,500

Sales Price $360,000

Days on Market 359

611 Otomites

Asking Price $420,000

Sales Price $395,000

Days on Market 255

376 Mackay

Asking Price $798,000

Sales Price $750,000

Days on Market 115

Also report on the South Lake Tahoe MLS were 12 new single family home listings. Two of these new listings, 1472 Glen Eagles, and 2002 Cherokee, are foreclosures and are priced very well!

Along with the pendings, solds, and new listings, there were 25 price reductions. The price reductions ranged from $10,000 all the way to $124,000! The property that came down $124,000 was 2953 Pinewood Dr. that was priced at $699,000 and lowered to $575,000.

This was my first weekly real estate review. I will continue this blog category weekly throughout the summer.

Current Interest Rates

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Although conventional loan rates are up since last month, they are still historically low. A conventional 30 year fixed rate mortgage up to a loan amount of $417,000 is at 6.25%. 

Even with the increase of the FHA jumbo loan limit to $580,000 in El Dorado County, loans over $417,000 will still cost more. Most lenders have not yet figured out what to charge for those loans. Those that have figured out what to charge are still basing it on a tiered basis. A loan in the amount between$417,000 and $580,000 is at 6.75%, and over $580,000 will be at 7.25%. Most lenders should soon be posting there rates based on the new loan limits.

Hopefully home loan rates will go back down, and stimulate the South Lake Tahoe Real Estate market. For more loan information contact Lee from Associated Mortgage in South Lake Tahoe at amclee@bacbell.net .

South Lake Tahoe Real Estate Activity

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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!

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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.Elks club pic

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

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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!

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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.lot-pic.jpgThis 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!