Foreclosures in South Lake Tahoe

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!

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!

South Lake Tahoe Foreclosures, 952 Tahoe Island Drive

Foreclosures in South Lake Tahoe are still on the on the top of the list for most serious home buyers. Currently there are 31 foreclosures on the South Lake Tahoe mls and 14 of them are in escrow. Foreclosures in South Lake Tahoe are still selling rather quickly and have an average of 66 days on the market.

One of the reasons that foreclosures in South Lake Tahoe are selling so quickly is that most of them are priced to sell. The average list price for the current foreclosures is $314,139. The average price per square foot for the current foreclosures is $206 compared to $334 for all of the non foreclosures on the market.

The most recent foreclosure listed on the South Lake Tahoe mls is 952 Tahoe Island Drive.

952 Tahoe Island Drive $275,000

In Town Chalet which is close to the elementary school and Tahoe Keys Blvd. Insert Wood Fireplace. 2 Bedrooms and 1 Bath upstairs and 2 Bedroom and 1 Bath Downstairs. To be sold in “AS IS” condition.

4 bedrooms, 2 bathrooms, 1 car garage
1650 square feet
7514 square foot lot
Chalet style
In town location
For more information contact Brent and Jill Johnson!

If you would like to know more about foreclosures in South Lake Tahoe, homes for sale in South Lake Tahoe, or South Lake Tahoe real estate, please call Brent and Jill Johnson today!

This Lake Tahoe real estate blog post was written by South Lake Tahoe real estate agent Brent Johnson.

Gardner Mountain

If you are looking for a neighborhood with low to mid-priced homes in South Lake Tahoe, the Gardner Mountain area is a great place to buy. The majority of homes in the Gardner Mountain area are smaller homes and cabins priced in the $300,000 range. There are some houses available in the mid $200’s, and range all the way to new houses can be found up in the $800’s.

View Larger Map

Gardner Mountain has a quiet mountain like setting and is still with-in the City limits of South Lake Tahoe. As the name implies, the area is located on a small and forested mountain. Gardner Mountain has easy access from HWY 89, and is less than a mile from HWY 50 and the Y. Gardner Mountain is one of the closest areas to Camp Richardson, Fallen Leaf Lake, and South Shores best beaches. There is a great bike trail that leads to Pope beach , Baldwin beach, Kiva beach, and all the way to Ski beach from the bottom of Gardner Mountain.

National Forest land boarders the west side of the Gardner Mountain area, and to the south is the South Tahoe High School. Gardner street, on the west side, is one of the best streets in the area to be located on because it boarders the National Forest land and offers both privacy and views.

Most of the lots in the Gardner Mountain area are 5,000 to 10,000 square feet in size. The 10,000 square foot lots are usually 50′ wide by 200′ deep, so many homes in the area have very large back yards. There are also a few big lots near the bottom of Gardner Mountain that are an entire acre in size.

Viewing Homes for sale in South Lake Tahoe? Bring your snow boots!!

If you are planning on looking at homes for sale in South Lake Tahoe, make sure to bring your snow boots! Yesterday, my wife and partner Jill was out showing houses in a snow storm and came home with wet and very cold feet. We have finally been getting some well needed Sierra snow, but it does not make things easy for house hunting!

After one of the driest January’s on record, sellers have forgotten how important it is to maintain access to their home through the snow. Many times buyers will pull up to a home that has not been plowed, and just drive away. That sure makes it hard to sell! There was one out of town agent who told Jill that she was just up her two weeks ago and shoveled a path to the front door. It has snowed a few feet since then, and there was a 4 foot berm from the snow plow!

Yesterday Jill had some very adventurous buyers willing to wade through the snow to get inside. It was a good thing, because they wouldn’t have been able to see many homes if not!

Foreclosures in South Lake Tahoe are the most likely homes NOT have a plowed driveway after a snow storm. It is usually up to the listing agent to schedule the snow removal, pay for it, and hopefully be reimbursed from the bank. Don’t expect to warm up once you are inside either, most foreclosures for sale in South Lake Tahoe are winterized and have no heat!

A lot of homes in South Lake Tahoe are second homes. It is easy for a homeowner who lives out of town to forget that when it is raining in the valley, it is most likely snowing in Tahoe! If you have a second home in Tahoe for sale, and would like buyers to look at it, hire a snow removal company to plow the driveway!

When planning a trip to look at houses for sale in South Lake Tahoe, make sure to bring a good pair of waterproof boots, a jacket, and gloves. You may also want to bring a note pad and a pen to take notes, a digital camera, and a tape measure to make sure that your furniture will fit!

Happy house hunting!!!

If you would like to set up an appointment to tromp around in the snow and look at houses for sale in South Lake Tahoe, or would like more information about foreclosures in South Lake Tahoe or real estate in South Lake Tahoe, contact Brent and Jill Johnson today!

South Lake Tahoe Real estate blog posted by Brent Johnson on a snowy Tahoe day!