houses in South Lake Tahoe

South Lake Tahoe Real Estate Review for May 2009

For the third month in a row, the number of new escrows for single family homes on the South Lake Tahoe mls has increased. In May there were 56 single family houses in South Lake Tahoe that went into escrow, this was up from 43 in April, and up from 38 in March. The total number of houses in South Lake Tahoe that are in escrow is now up to 96. With 20% of our current single family housing inventory in escrow, the South Lake Tahoe real estate market seems to be stabilizing.

Distress sales are still accounting for about half of our current escrows. Out of the 96 houses that are in escrow, 19 are bank owned foreclosures, and 31 are short sales. Out of the 56 new May escrows, 11 are bank owned foreclosures, and 14 are short sales.

The listing prices of the houses that went into escrow in May were also up from the escrows in April. Both the average list price per square foot and median list price of the new escrows was up slightly.

Statistics for the Pending May Single Family Homes in South Lake Tahoe for May

There were 56 new single family houses in South Lake Tahoe that went into escrow in May (up from 43 in April)
The median list price for the homes was $369,700 (up 5% from $349,900 in April)
The average list price per square foot was $253 (up 3% from $246 in April)
The median days on the market was 75 (down from 129 in April)
11 of the new escrows were bank owned foreclosures (13 foreclosure escrows in April)
14 of the new escrows were short sales (15 new short sale escrows in April)

The foreclosure listings in South Lake Tahoe that went into escrow in May were priced much lower than the non-foreclosure listings. The average price per square foot for the foreclosures in South Lake Tahoe was only $177. The median list price for the foreclosure listings was $295,000 and the average list price was $296,405. Many of the foreclosure listings had multiple offers on them and went into escrow within just a few days of being listed. There are now currently 19 foreclosures in South Lake Tahoe that are in escrow.

The new short sales in South Lake Tahoe that went into escrow had a much higher list price per square foot at $249. The median list price for the short sale listings was $479,000 and the average list price was $481,600. The short sales also took longer to sell, the average days on the market was 146.

The number of houses in South Lake Tahoe that actually sold in May was 26, up one home from April. There should be a lot more closed escrows in June from the pending sales from April and May. Escrows are now taking from 45 to 60+ days due to the fact that lenders are now taking longer to push loans through. The average sales price, median sales price, and average price per square foot were all up in May compared to April.

Statistics for the Sold Single Family Homes in South Lake Tahoe for May

There were 26 houses in South Lake Tahoe that sold in May
11 of the sold houses were bank owned foreclosures
The average sales price was $360,169 (up 13% from April when it was $334,696)
The median sales price was $315,000 (up 8% from April when it was $291,000)
The average sales price per square foot was $222 (up 5% from April when it was $210)
The average days on the market was 125
None of the 26 houses sold in May were reported as short sales!

With 31 short sales in South Lake Tahoe currently in escrow, and none that closed escrow in May, short sales are still a bit of a challenge to say the least.

The 11 foreclosures in South Lake Tahoe that sold in May had an average sales price of $187, a median sales price of $240,000, and an average sales price of $261,682. The median days on the market for the sold foreclosures was 69, including the escrow period.

The South Lake Tahoe real estate market is definitely showing signs that the bottom is either near or has passed. The amount of pending sales continues to rise and the median and average sales price has increased over the past month.

Make sure to keep reading Brent and Jills South Lake Tahoe real estate blog for the latest statistics for real estate in South Lake Tahoe!

South Lake Tahoe Home Sales and The $8,000 Tax Credit

South Lake Tahoe real estate first time home buyers now have an extra incentive and some help with their down payment. According to Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.

Secretary Donovan said that important changes, which the National Association of Realtors has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan said. According to Donovan , the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Donovan also goes on to say that the housing market appears to be stabilizing and that the rapid decline in home prices starting to abate.

This information was provided by the National Association of Realtors.

Enabling first time home buyers to use the $8,000 tax credit as part of the down payment on FHA loans should bring more buyers into the market. I would also agree with Donovan in that the real estate market is stabilizing. There are currently 82 houses in South Lake Tahoe that are in escrow out of 469. With 17% of our current housing inventory is in escrow, this is the highest percentage that it has been all year. There are also 27 foreclosure listings in South lake Tahoe, and 19 of them are in escrow. We are once again seeing multiple offer situations on foreclosures and short sales.

For more information regarding South Lake Tahoe real estate, foreclosures in South Lake Tahoe, and the $8,000 first time home buyer tax credit, call Brent Johnson today!

The True Costs of Owning Real Estate in South Lake Tahoe

With all of the first time home buyers and investors diving into the South Lake Tahoe real estate market, I figured that I would write a blog post about all of the costs that should be taken into consideration before purchasing a home. In this blog post I will go over the costs associated with purchasing and owning a home in South Lake Tahoe. With the most active recent price range being under $300,000, I based my costs on a single family home with a sales price of $300,000.

When owning a home in South Lake Tahoe, you need to be aware that there are more expenses than just your mortgage payment and taxes. Other expenses include the South Lake Tahoe Public Utility District (water and sewer), the South Tahoe Refuse (garbage collection), Taxes, Insurance, Maintenance, possible snow removal and landscaping.

The South Lake Tahoe Public Utility District charges $231.01 per quarter for water and sewer fees in the City of South Lake Tahoe. Water use is not metered at this time and is charged as a flat rate.

The South Tahoe Refuse charges 65.28 a quarter for trash pick-up. It is mandatory in South Lake Tahoe to have trash pick-up even for vacation homes and vacant homes.

The real estate taxes are based on the purchase price and are about 1.1%

Hazard insurance is a must, and is a requirement if there is going to be a loan on the home.

It is a good idea to have a snow removal company clear your driveway in the winter for second homes. The snow can really pile up and get as hard as concrete if it is not cleared often. Second homeowners will also want to consider hiring a landscaper to keep their yard looking nice during the summer.

Homes in South Lake Tahoe are exposed to a harsh environment and will need regular maintenance and up-keep. Wood houses will need to be stained every 3 to 5 years and paint grade houses should be painted every 5 to 10 years. Furnaces and water heaters should be serviced annually and chimneys should be cleaned to prevent chimney fires. All other normal maintenance costs should also be taken into consideration.

Here is a breakdown of the costs associated with purchasing a $300,000 home in South Lake Tahoe. The title and escrow fees were provided by Placer Title. I used a conventional 30 year 80% loan of $240,000 at 5% interest amortized over a 30 year period.

Buyers Estimated Net Sheet

123 Main Street

Charges Credits

Sales price $300,000

New Loan $240,000

CLTA Standard Title Policy, 1/2 Buyer $486.50

ALTA Loan Extended Coverage Policy $441.50

Recording Fee $75.

Escrow Fee, 1/2 Buyer $485.

Outside Notary Fee if Applicable $125

Hazard Insurance $800

Termite Report $200

Home Inspection $300

______________________________________________________________________________________

******SubTotals******

Due From Buyer $302,912.50 $240,000

$62,912.50

Totals $302,912.50 $302,912.50

Including the hazard insurance, there would be $3,112.50 in closing costs to purchase the home. There would also be prorations for the taxes, refuse, and water and sewer on the closing statement.

The monthly costs associated with owning the house in South Lake Tahoe are as follows:

Mortgage payment on $240,000 at 5% $1288.37

Taxes based on a $300,000 sales price $275.

Hazard Insurance $66.67 ($800/12 months)

Water and Sewer $77. ($231.01/ 3 months)

Refuse $21.76 ($65.28/ 3 months)

_____________________________________________________________________________________

Total Monthly Cost $1,728.80

I did not include any snow removal or landscaping in the monthly cost because they are optional. I also did not include any maintenance costs because they are variable, but should also be considered. One last consideration would be any costs associated with the loan such as loan origination fees, appraisals, ext..

It is a great time to purchase real estate in South Lake Tahoe, but first you should make sure that it is in your budget. Buyers who are planning on purchasing a home and renting it out will most likely not be able to cover all of the costs associated with owning the house. There will probably need to be some money invested by the owner in order to cover all of the holding costs. Purchasing a home in South Lake Tahoe may still be a great investment if you purchase a home with the current low values and low interest rates. Once the market rebounds, owning a house in South Lake Tahoe could be an incredible investment!

Please call Brent and Jill Johnson for more information regarding South Lake Tahoe real estate today!

Foreclosures in South Lake Tahoe Year to Date

Foreclosures in South Lake Tahoe have been changing the South Lake Tahoe real estate market for the last year. Most of the buyers that are investing in real estate in South Lake Tahoe are looking to take advantage of low prices and searching for deals. Bank owned properties seem to be topping the list for the buyers seeking good deals on homes. Are buyers really getting that good of a deal? Lets start off with the statistics.

So far this year there have been 77 single family houses in South Lake Tahoe that have closed escrow according to our mls. Out of the 77 sold homes, 27 were bank owned foreclosures. The reason that I say that the foreclosures are changing the South Lake Tahoe real estate market is because they change the statistics so dramatically.

Foreclosures in South Lake Tahoe vs non-foreclosures/ Price per square foot

Lets look at the average price per square foot. The average price per square foot of the 77 houses in South Lake Tahoe that have sold this year was $231 per square foot. That is 20% less than the same time last year in which the average price per square foot of the sold homes was $287.

Lets look further into price per square foot. The average price per square foot for the 27 foreclosures in South Lake Tahoe that have sold this year is only $196 per square foot. If I take out the foreclosures and re-run the statistics the average price per square foot jumps up to $252. With out the sold foreclosures in the comps the average price per square foot is only down 12%.

Foreclosures in South Lake Tahoe/ average sales price

The foreclosure listings also brought down the average sales price substantially. The average sales price for the 77 houses in South Lake Tahoe that have sold year-to-date was $408,874. The average sales price for the foreclosures in South Lake Tahoe was $309,185. Again, if I re-run the statistics with out the foreclosure listings, the average sales price jumps up to $458,508.

South Lake Tahoe Foreclosures/ Days on the market

There is one statistic that foreclosures are bringing down that is not necessarily a bad thing, days on the market. The average days on the market for the houses in South Lake Tahoe that have sold year-to-date is 170. The average days on the market for the sold foreclosures is only 97 (including the escrow period which is an average of 45 days). If I take out the foreclosures, the days on the market goes up to 190 days.

Not all foreclosures in South Lake Tahoe are “Great Deals”!

Now that you know that foreclosures in South Lake Tahoe are selling for less per square foot and have an average sales price that is less than non-foreclosures, you may be thinking that foreclosures are the way to go. Not all foreclosures are created equal! There is a reason that foreclosures in South Lake Tahoe are selling for under $200 per square foot. Yes, banks price foreclosures to sell quickly, but be aware of the repair and upgrading costs.

Lets say that you have narrowed down your possible home purchase to two homes, a foreclosure that needs some work for $300,000, and a non-foreclosure that is in move in condition for $350,000. Currently 90% of the buyers will go for the foreclosure. This means that you may be competing against other buyers, and may need to pay close to full price, if not over full price to get the foreclosure. The non-foreclosure on the other hand may have been on the market for 120+ days and has motivated sellers waiting to see their first offer! Now lets look at the condition of the homes. If the foreclosure needs paint, carpet, appliances, and minor repairs you may end up paying even more than you would have paid for the non-foreclosure.

Some foreclosure listings in South Lake Tahoe are very good deals, but many buyers are overlooking the non-foreclosure listings that may also have great potential.

Give Brent and Jill Johnson a call today to set up an appointment to view the non-foreclosure and foreclosure listings on the South Lake Tahoe mls. Feel free to contact us today with any of your South Lake Tahoe real estate questions!

South Lake Tahoe Real Estate Review for March 2009

The South Lake Tahoe real estate market followed the spring weather and warmed up a bit in March. In March there were 38 new pending single family homes which was up 42% from 22 in February. The increase in pending home sales was also seen across the country. According to the National Association of Realtors, the Pending Home Sales Index rose 2.1% to 82.1 Nationally. The increase in pending home sales is most likely due to the drop in interest rates, decrease in home values, the increase in the Housing Affordability Index, and the first time home buyer tax credit.

In March there were 38 new pending single family homes reported on the South Lake Tahoe MLS
9 of the pending homes were reported as short sales
8 of the pending homes were bank owned foreclosures
The median list price was $297,900 (down 16% from $352,625 in February)
The median square footage was 1,537
The median days on the market was 110
The average list price per square foot was $222 (down 3% from $230 in February)

As usual, the foreclosure listings in South Lake Tahoe were priced less and went into escrow quicker than the non-foreclosure homes. For the 8 foreclosures that went into escrow in March, the median list price was $257,500 and the average price per square foot was $211. The average days on the market for the foreclosures was only 49.

Although the amount of pending homes in South Lake Tahoe was up in March, the number of sold single family homes dropped slightly. There were 25 houses that sold in March, which was down 11% from 28 sold homes in February. There were only 22 new pendings in February, so the amount of sold homes in March decreased. The number of sold homes should increase substantially in April due to the increase in pending sales from March.

There were 25 houses in South Lake Tahoe that sold in March
7 of the sold homes were bank owned foreclosures
4 of the sold homes were short sales
The median listing price was $419,000 (up 15% from $356,950 in February)
The average listing price was $497,973 (up 11% from $444,529 in February)
The median sales price was $388,000 (up 15% from $329,500 in February)
The average sales price was $457,160 (up 9% from $418,161 in February)
The median days on the market was 114
The median square footage was 2,012
The average price per square foot was $222 (down 3% from $229 in February)

There were some substantial differences between the foreclosure and non-foreclosure homes that sold in March.

The 7 foreclosures in South Lake Tahoe sold in March sold for an average price per square foot of $169, 31% less than the non-foreclosure homes which sold for an average price per square foot of $244.
The median selling price of the bank owned foreclosures was $250,000, 51% less than the non-foreclosures which had a median sales price of $510,000.
The median square footage of the foreclosures was 1,584 which was 699 square feet less than the non-foreclosures which had a median square footage of 2,283.
The median days on the market was 84 for the foreclosures and 184 days for the non-foreclosures.

There were 12 foreclosure listings on the South Lake Tahoe mls that sold in March 2008 compaired with 7 that sold in 2009. This is the first time that I have seen the number of foreclosures higher in the previous year since I have been blogging about South Lake Tahoe Real Estate statistics. The March 2008 single family home statistics area as follows:

There were 36 single family homes that sold in March 2008 on the South Lake Tahoe mls
12 of the sold homes were bank owned foreclosures
The median list price was $399,000
The median sales price was $387,500
The average price per square foot was $298
The median square foot was 1,372
The median days on the market was 155

Single family home statistics for March 2007

There were 30 single family homes that sold in March 2007
The median list price was $518,900
The median sales price was $507,000
The average price per square foot was $327
The median square foot was 1,816
The median days on the market was 163

Single family home statistics for March 2006

There were 38 single family homes that sold in March 2006
The median list price was $492,000
The median sales price was $485,140
The average price per square foot was $337
The median square foot was 1,573
The median days on the market was 114

Single family home statistics for March 2005

There were 50 single family homes that sold in March 2005
The median list price was $447450
The median sales price was $440,000
The average price per square foot was $312
The median square footage was 1,544
The median days on the market was 83

With 38 single family listings on the South Lake Tahoe mls that are currently in escrow, April is shaping up to be a great sales month for real estate in South Lake Tahoe. Here are some of the houses that sold in March from the South Lake Tahoe mls.

Not much has been happening with lots in South Lake Tahoe this year. In march there was only one lot that sold and only one lot that went into escrow. The lot that sold was 764 Elk Point which was a vacant lot with an allocation in the Angora Fire area that sold for $100,000. The lot that went into escrow was 1069 San Diego, which was a vacant county lot listed for $69,000.

Condo activity in March was similar to lots with only one sale and two pendings reported on the South Lake Tahoe MLS. The condo that sold was in the Tahoe Keys at 405 Ala Wai which was a 3 bedroom, 2 bath unit that sold for $485,000. Both of the pending condos are short sales in the Sandy Way complex.

My next South Lake Tahoe Real Estate blog post will be about the first quarter statistics for 2009. For more information regarding South Lake Tahoe Real Estate, foreclosures in South lake Tahoe, or South Lake Tahoe mls listings, please contact Brent and Jill Johnson today!

South Tahoe Real Estate Blog-$15,000 Tax Credit is Shot Down

The $15,000 home buyer tax credit that the Senate had proposed in the massive stimulus bill has been modified by Congress. The Senate had added a proposal that would have given all home buyers a $15,000 (or up to 10% of the purchase price) tax credit.

According to the New York Times, the tax credit will likely only be for first time home buyers that meet certain income requirements, and be reduced from $15,000 to $8,000. The proposed tax credit is still in negotiations, and all of the details have not yet been worked out.

The Stimulus Bill was also cut in other areas, and now is down to an estimated $789 billion dollars. The House and the Senate are hoping to have the bill on President Obama’s desk by Monday (Presidents Day).

The Senates proposed $15,000 tax credit would have made a much bigger effect on the housing market because it would have been available to ALL home buyers.

If the tax credit is passed as it stands, the South Lake Tahoe real estate market probably will not benifit as much as other areas. The South Lake Tahoe real estate market is in a resort area and is different than the majority of other markets. Most buyers looking at South Lake Tahoe homes for sale are not first time home buyers, but are vacation home buyers, and investors.

In order for South Lake Tahoe houses to see an upward trend in prices, we need to see a decline in foreclosures and short sales. South Lake Tahoe foreclosures have been selling for an average of $216 per square foot, 21% less than non-foreclosures which have been selling for $274 per square foot. The investors that are buying houses in South Lake Tahoe are looking for deals, so they do not mind buying a foreclosure that needs a bit of work.

Like I had said earlier, the $15,000 tax credit for all home buyers would have benefited the South Lake Tahoe real estate market more because it would have added an extra incentive to second home owners and investors. As soon as the details of the first time home buyer tax credit are worked out, I will be sure to post them on my South Lake Tahoe Real Estate blog!

This South Tahoe real estate blog was posted by South Lake Tahoe real estate agent Brent Johnson. Contact Brent and Jill Johnson for more information regarding homes for sale in South Lake Tahoe, South Lake Tahoe real estate, or South Lake Tahoe foreclosures!