properties for sale in south lake tahoe

June South Tahoe Real Estate

The South Lake Tahoe Real Estate market had an excellent month in terms of transactions closed in June. There were 77 single family homes and condos that were reported as sold on the South Lake Tahoe MLS. The number of homes sold in June was up from 66 sales in May and well above June 2011 when 59 properties were sold.

The real estate market continues to be very active, but we are still struggling with a low inventory of homes for sale. There are currently only 234 single family homes that are listed on the MLS as “active” listings in the city and county areas of South Lake Tahoe. There are 365 total single family listings, but 130 of them are in escrow (36%). With the low inventory of properties for sale in South Lake Tahoe, buyers are still dealing with multiple offer situations on homes that are priced to sell. There were as many as 13 offers on some of the foreclosures that were priced below market value. Not all of the properties are getting buyer activity though. There are still properties on the MLS that have been listed for a few years now that are not priced where they need to be.

June South Tahoe Real Estate Statistics

There were 77 single family homes and condos that were sold on the South Lake Tahoe MLS in June 2012, up from 66 in May and up from 59 in June 2011.
The median sales price was $225,000, down from $247,775 in May and down from $280,000 in June 2011.
The average sales price was $279,311, down from $349,102 in May and down from $374,119 in June 2011.
The average price per square foot was $177, down from $190 in May and down from $196 in June 2011.
The average days on the market was 146 and the median days on the market was only 91.

Foreclosures in South Lake Tahoe

There were 18 bank owned foreclosures in South Lake Tahoe that were sold in June, up from 17 in May.
The average sales price of the foreclosures was $200,036, down from $211,258 in May.
The median sales price was $174,000, down from $193,800 in May.
The average days on the market was 73 and the median days on the market was 65.
The average price per square foot was $140, down from $142 in May.

Short Sales in South Lake Tahoe

There were 16 Short Sales in South Lake Tahoe that were sold in June, up from 12 in May.
The average sales price of the short sales was $279,188, up from $256,611 in May.
The median sales price of the short sales was $230,500, up from $226,668 in May.
The average price per square foot was $168, the same as it was in May.
The average days on the market was 206 and the median days on the market was 193.

With 130 properties still in escrow on the South Lake Tahoe MLS, July should be another good month for closings. For more information about the South Lake Tahoe Real Estate market, please call Brent Johnson at (530) 416-2625!

South Lake Tahoe Vacation Rental Tax Deductions

Many home buyers in South Lake Tahoe are thinking of renting out their home as a vacation rental in order to offset the cost of ownership. This is a great way for buyers to afford a bigger or more expensive property that may have been out of reach with out any rental income. Although the vacation rental activity is down along with housing prices, there is still potential to attract renters during our peak winter and summer seasons, especialy holidays.

If you do rent out your home in South Lake Tahoe, there are some great tax deductions that you do not want to miss. It is important to ask your CPA about the allowed deductions, but here are deductions that owners of rental properties can take as listed on IRS.gov.

Mortgage interest
Property Taxes
Operating expenses
Depreciation
Repairs

You can deduct the ordinary and necessary expenses for managing, conserving, and maintaining your rental property. Ordinary expenses are those that are common and generally accepted in the business. Necessary expenses are those that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities, snow removal, and insurance.

You can deduct the cost of repairs that you make to your rental property. A repair keeps your property in good operating condition and does not materially add value to the property. Examples are painting, fixing leaks, replacing broken doors and other parts of the rental property.

You may not deduct the cost of improvements. An improvement adds to the value of the property, prolongs its useful life, or adapts it to new uses. The cost of improvements is recovered through depreciation. Examples are adding a deck, a new fence, or a roof. Your CPA will be able to calculate the depreciation of the improvements so that the cost of the improvement will be deducted over time.

In my mind, the best deduction for a vacation rental property in South Lake Tahoe is travel expense! Many real estate investors acquire real estate in the places they like to visit. Each time they travel to the property, the travel costs are a deductible expense. That means that if you purchase a rental property in South Lake Tahoe, your next visit to your home will be tax deductible!

This blog post was just a highlight of the available tax deductions for rental properties. I am a real estate agent in South Lake Tahoe, not a tax expert, so make sure to check with your CPA for allowable tax deductions and recent tax changes! For more information regarding properties for sale in South Lake Tahoe, contact Brent Johnson today!

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.