South Lake Tahoe Real Estate Blog

South Lake Tahoe Real Estate Review for February 2009

The South Lake Tahoe real Estate market rebounded a bit in February as single family home sales increased 43% from the previous month. There were 28 single family homes that sold in February, up from the 16 homes sold in January. February 2009 single family home sales were also up 43% from February 2008 which had 16 sold single family homes.

Although the number of South Lake Tahoe homes that sold in February increased from last year, as expected, the median sales price was down. This February the median sales price was $329,500, 20% less than February 2008 which had a median sales price of $412,500.

Out of the 28 single family homes in South Lake Tahoe that sold last month, 13 were foreclosures and 1 was a short sale. With half of the home sales being distress sales, the decrease in sales price is to be expected. Here are the February single family home February sales statistics for both foreclosures in South Lake Tahoe and non-foreclosure homes:

Average price per square foot was $229 (down 18% from February 2008 which was $279)
Average list price was $444,529
Median list price was $356,950 (up 7% from January 2009 which was $332,000)
Average sales price was $418,161
Median sales price was $329,500 (up 6% from January 2009 which was $310,000)
Median days on market was 120
Average square feet was 1832
Median square feet was 1612

Foreclosures in South Lake Tahoe are still in a high demand and are selling for less than the non-foreclosure homes. Non-foreclosure sellers are having to adjust their home prices to compete with the foreclosures. Here are the statistical differences between the foreclosures and non-foreclosure houses that sold in February:

The average price per square foot for foreclosures in South lake Tahoe was $196 (24% less than non-foreclosures which had an average price per square foot of $259)
The average listing price for the foreclosures in South Lake Tahoe was $308,952 (40% less than non-foreclosures which had an average listing price of $515,750)
The median listing price for the foreclosures in South Lake Tahoe was $284,500 (24% less than non-foreclosures which had a median listing price of $374,000)
The average sales price for the South Lake Tahoe foreclosures was $289,917 (41% less than non-foreclosures which had an average sales price of ($487,550)
The median sales price for the South Lake Tahoe foreclosures was $274,750 (20% less than non-foreclosures which had an median sales price of $345,000)

The foreclosures not only sold for less than the non-foreclosure homes, but much quicker also. The median days on the market for the foreclosures was only 83 days, but it took a median of 172 days for the non-foreclosures to sell.

Foreclosure in South Lake Tahoe sold in February — 2419 Lupine Trail

One of the foreclosures that sold was 2419 Lupine in Montgomery Estates. This home was a “gutted” fixer-upper with plans for a 4,000 square foot remodel and was in a great area on a 12,475 square foot lot. This property received a lot of attention and sold for $190,000.

South Lake Tahoe foreclosure sold in February — 953 Star Lake

953 Star Lake was another foreclosure that sold in February. This was a 2 bedroom, 1464 square foot log home that sold for $297,000 which was above the list price of $279,000.

Although the number of single family homes sold in February increased significantly, the number of new pendings (escrows) was down. In February there were 22 houses that were reported pending on the South Lake Tahoe mls compared with 35 in January. Out of the 22 new escrows, 6 were foreclosures, and 5 were short sales. The average listing price per square foot for the new pending homes was $230, the median list price was $352,625, the median days on market was 71 and the median square footage was 1540.

Here are some of the South Lake Tahoe homes that sold in February from the South lake Tahoe mls.

If you would like to see more South Lake Tahoe real estate statistics that I have not posted on my blog, please let me know what you would like to see. If you have any further questions regarding the South Lake Tahoe Real Estate market, South Lake Tahoe foreclosures, or questions about properties on the South Lake Tahoe mls, please contact Brent and Jill Johnson.

This South Lake Tahoe real estate blog was posted by Brent Johnson.

South Lake Tahoe Real Estate Statistics

This blog post will sumerize the statistics of the single family homes in South Lake Tahoe that have sold so far this year. The National housing market has had a slow start this year, but California and Lake Tahoe home buyers seemed to embrace the opportunities, and took advantage of the historically low prices. Nationally, existing home sales fell 5.3% in January, but in California, existing home sales increased 100% compared to January 2008. The increase in sales is due to lower prices and low interest rates.

So far this year there have been 44 homes in South Lake Tahoe that have sold according to the South Lake Tahoe mls. Out of the 44 homes that sold, 18 of them were bank owned foreclosures. The South Lake Tahoe foreclosures that sold had a median sales price of $280,000, which was 15% less than the non-foreclosure homes. There were only 2 short sales in South Lake Tahoe that have actually closed escrow so far this year.

January 1-February 27, 2009 South Lake Tahoe Real Estate Statistics

44 sold houses in South Lake Tahoe
Average square feet 1676
Median square feet 1492
Average list price $422,452
Average sales price $396,813
Median list price $356,950
Median sales price $329,950
Average price per square foot $242
Average days on market was 114

I love to compare the statistics of the South Lake Tahoe foreclosures to the non-foreclosure homes. Foreclosures are not always in as good of condition as non-foreclosure homes, but they are usually priced to sell rather quickly. Banks have a lot of holding costs associated with owning a foreclosure (they would rather spend that money on their private jets), so they try to price them below the competition.

January 1-February 27 South Lake Tahoe foreclosure statistics

18 sold foreclosures in South Lake Tahoe
Average square feet 1648
Median square feet 1492
Average list price $343,422
Average sales price $318,000
Median sales price $280,000
Median list price $297,450
Median days on market was 83 days

As you can see, the foreclosures sold quicker and for less money than the non-foreclosure homes. In a couple of days I will post my monthly South Lake Tahoe real estate statistics blog and compare February to January for both 2008 and 2009.

For more information about foreclosures in South Lake Tahoe, the South Lake Tahoe mls, or South Lake Tahoe real estate, please contact Brent and Jill Johnson today!

Highland Woods

The Highland Woods area is a small and desirable neighborhood in South Lake Tahoe. There are not a lot of homes that come up for sale in the Highland Woods area, so the sales can often be quick, especially if the homes are priced well.

One of the best features of Highland woods is the under ground utilities. Other than the Tahoe Keys, Highland woods is one of the the only areas that does not have power lines obstructing the views. The curbs and gutters are another feature that add to the aesthetics of the area. There are also many newer homes with landscaped yards that make this neighborhood a pleasure to be in.

The Highland woods area is centrally located in South Lake Tahoe with easy access to highway 50. The casinos, Heavenly Valley Ski Resort, and Lake Tahoe’s famous sandy beaches are only a short drive away.

The Upper Truckee River, Truckee Marsh, and Trout Creek boarder three sides of the area, giving Highland Woods a very peaceful setting. Some of the homes on Springwood street back the meadow and even have lake views. On the south side of Highland Woods near highway 50 are some duplexes and multi-family units, so the more desirable areas for single family homes are near the middle and around the perimeters of the meadows.
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Homes in Highland Woods average in price from the Upper $200,000’s to the $600,000’s.

If you are looking at houses for sale in South Lake Tahoe and like clean desirable neighborhoods, make sure to check out Highland Woods. There are only 4 homes that are available on the South Lake Tahoe mls, so make sure to sign up for my new listing notification to have any new mls listings e-mailed to you as soon as they hit the market!

Vacant lots in South Lake Tahoe

With only one vacant lot sold so far this year, and no lots currently in escrow, it is not looking good for the value of vacant properties in South Lake Tahoe. So far this year, the only lot that has sold on the South Lake Tahoe mls was 3708 Verdon Street. 3708 Verdon is a vacant lot with no allocation near Heavenly Valley Ski Resort that sold for $90,000.

The speculators, developers, and investors that were buying the lots in South Lake Tahoe and earning massive returns on their investments have just stopped buying land. The days of six figure returns on spec houses are over for now, so the inflated lot values have taken a huge hit. Buyers used to be able to purchase a vacant lot, get in line for an allocation with the city or county, and then sell the lot for almost double what they paid for it after the allocation had been received. Now lots with allocations are not selling for much more than the lots without allocations.

The price of homes in South Lake Tahoe has also affected the lot market. Buyers can now purchase a small house or a fixer upper for close to what lots were once selling for. Currently the average price of the foreclosures for sale in South Lake Tahoe is $332,344, well less than what it would cost to buy a lot and build a home.

Here are the statistics for the sales of lots from the South Lake Tahoe mls for the last 6 years

Sold 2008 lots with allocations

21 lots sold
Median list price $175,000
Median sales price $165,000
Median days on market was 79
Lots with allocations sold for an average of $15,000 more than lots without allocations.

Sold 2008 lots without allocations

15 lots sold
Median list price $150,000
Median sales price $150,000
Median days on market was 147

Sold 2007 lots with allocations

24 lots sold
Median list price $222,000
Median sales price $205,000
Median days on market was 96
Lots with allocations sold for an average of $55,000 more than lots without allocations.

Sold 2007 lots without allocations

32 lots sold
Median list price $172,500
Median sales price $150,000
Median days on market was 131

Sold 2006 lots with allocations

14 lots sold
Median list price $319,500
Median sales price $293,250
Median days on market was 108 days
Lots with allocations sold for an average of $93,750 more than lots without allocations

Sold 2006 lots without allocations

46 lots sold
Median list price $215,000
Median sales price $199,500
Median days on market was 81 days

Sold 2005 lots with allocations

23 lots sold
Median list price $274,900
Median sales price $260,000
Median days on market was 103 days
Lots with allocations sold for an average of $110,000 more than lots without allocations

Sold 2005 lots without allocations

102 lots sold
Median list price $154,250
Median sales price $150,000
Medain days on market was 92 days

Sold 2004 lots with allocations

23 lots sold
Median list price $195,000
Median sales price $175,000
Median days on market was 99 days
Lots with allocations sold for an average of $82,000 more than lots without allocations

Sold 2004 lots without allocations

145 lots sold
Median list price $95,000
Median sales price $93,000
Median days on market was 93 days

Sold 2003 lots with allocations

17 lots sold
Median list price $139,000
Median sales price $125,000
Median days on market was 92 days
Lots with allocations sold for an average of $50,000 more than lots without allocations.

Sold 2003 lots with allocations

126 lots sold
Median list price $79,000
Median sales price $75,000
Median days on market was 87 days

Looking at the statistics, it is easy to see how quickly lots in South Lake Tahoe appreciated in the last 6 years. It is also clear that the volume of lot sales has quickly decreased. I expect to see a major reduction in the median sales price of lots this year. There have already been some big price reductions on both lots with and without allocations.

Although I do expect lot prices to continue downward, I still think that it is a great time to by if you can find a motivated seller and pay less than market value. There are some great city and county lots for sale under $100,000, which we have not seen since 2003/2004. The time it takes to get an allocation is also much quicker now, especially in the county.

If you are planning to build a home there has never been a better time as long as you are planning to hold onto it. Lumber prices are down to their lowest prices in years, and there are a lot of contractors out there looking for work.

For more information about South Lake Tahoe properties, the South Lake Tahoe mls, or South Lake Tahoe real estate, please contact Brent and Jill Johnson. This South Lake Tahoe real estate blog post was written by Brent Johnson.

Heavenly Valley

When it comes to vacation homes in South Lake Tahoe, the Heavenly Valley area is hard to beat. Throughout the winter months, skiers and snowboarders flock to Heavenly Valley Ski Resort and look for homes to rent close by. Any local vacation rental agency will tell you that vacation rental homes in the Heavenly Valley area do very well compared to most other areas.

Homes in the Heavenly Valley area range from a small ski cabin in the $300,000’s to multi-million dollar lake view houses. Buildable vacant land and coverage is getting scarce in this area, so remodels are becoming more common than new construction. There have been some recent sales of newer and remodeled homes that have really upped the median and average home prices in the area. The home values in the Heavenly Valley area are higher than most other areas in South Lake Tahoe due to the demand, great rental income potential, and location.

The Heavenly Valley area is located to the south east of Pioneer Trail and extents to the base of Heavenly Valley Ski Resort. The casinos are only a few minutes away adding to the desirability of the area for vacation rentals. Some of the homes up higher on the mountain have spectacular views of Lake Tahoe, the surrounding mountains, and Heavenly Resort.

Foreclosures in South Lake Tahoe may be Reduced by the Obama Administration

Will the amount of new foreclosures in South Lake Tahoe be reduced by the Obama administrations plan to aid home owners?

A recent article from REALTOR® Magazine Online explains the Obama administrations long-awaited plan to stem foreclosures. It’s organized into three categories:

1.) Help for home owners making their payments but at risk of default and foreclosure.

Home owners with a Fannie Mae or Freddie Mac loan would be eligible to refinance as long as their mortgage doesn’t exceed 105 percent of the home’s current market value. Currently owners need to have at least 20 percent equity. Potential impact: 4-5 million households.

2.) Help for home owners already in default and in need of loan modification.

For lenders that voluntarily agree to lower a borrower’s payment so that it makes up no more than 38 percent of the borrower’s income, the government would share the cost of lowering the mortgage burden to 31 percent of income. Incentives to lenders to participate include a $1,000 payment.

Borrowers can receive up to $1,000 as an incentive to stay current on their new mortgage. Still in the works is a proposed provision that would allow bankruptcy judges to require loan modification (known as a cramdown) as part of a household’s restructuring. That provision requires legislation by Congress. Estimated potential impact: 3-4 million households.

3.) Doubled resources to Fannie Mae and Freddie Mac.

To encourage investors to buy the secondary market companies’ mortgage-backed securities, the government explicitly backstops them to up to $400 billion, twice the current amount.

The plan does not provide help to investors or to home owners who are in trouble with a second home, nor does it apply to homeowners whose mortgage is part of a private-label mortgage security that is not backed by Fannie Mae or Freddie Mac.

“The administration’s proposed plan, combined with provisions like the $8,000 first-time home buyer tax credit in the just-enacted American Recovery and Reinvestment Act, will help minimize foreclosures, shrink housing inventory, stabilize home values, and move the country closer to an economic recovery,” says NAR President Charles McMillan.

Source: REALTOR® Magazine Online

I think that the plan will have a minimal effect in reducing the number of new South Lake Tahoe foreclosures because the plan does not help second home owners or investors. There are some homes in South Lake Tahoe that are owned as primary residences, but the majority of our market are second homes and vacation homes. A lot of the homes that are being foreclosed on here in Lake Tahoe are the vacation homes and investment homes.

There were a lot of fixer upper homes purchased by investors and speculators when the real estate market was booming. The investors then spent money fixing the properties up, or had planned on fixing them up and then selling them until the market started going down. When equity lines of credit were cut off, a lot of investors and speculators lost the money they were using to complete their projects and to pay for the holding costs. The market went down, and many home owners could not afford to sell them for less than what they owed.

The plan also will only help home owners who have loans backed by Fannie Mae or Freddie Mac. The plan should assist between 7 and 9 million home owners, but unless backed by Fannie or Freddie this plan will not help.

Hopefuly the Obama administration’s plan will help some of the local home owners in trouble, but I believe that the effect on the South Lake Tahoe Real Estate market will be minimal.

This Lake Tahoe Real Estate blog post was written by Brent Johnson. If you would like to talk about the South Lake Tahoe real estate market, homes for sale in South lake Tahoe, or South Lake Tahoe foreclosures, please contact Brent and Jill Johnson today!