Real Estate in South Lake Tahoe

South Lake Tahoe Real Estate Blog-NAR’s Pending Home Sales Index is Up!

Real Estate in South Lake Tahoe is not the only market that is seeing an increase in pending sales. According to the National Association of Realtors the National Pending Home Sales Index rose 6.3% in December to 87.7. This is 2.1% higher than December 2007.

The increase in pending home sales is due to good prices on foreclosures, short sales, motivated sellers, and low mortgage rates. The pending sales index actually fell in the west 3.7% to 97.5, but is 17.5% higher than it was in December of 2007.

According to NAR President Charles McMillian the rise in contract signings is encouraging, “However, we need to take additional steps to meaningfully draw down inventory and stabilize home prices,” he says.

McMillan says some enhancements that could bring more buyers into the market include expanding the $7,500 tax credit to all home buyers and extending it until the end of 2009, and making loan limit increases permanent.

“We also need to direct funds in the Troubled Asset Relief Program to add liquidity to the mortgage market, buy down mortgage interest rates and increase other forms of credit,” he says

Yun says the outlook for housing and the economy is murky. “Although Congress and the Obama administration are taking steps to help the economy, the stimulus package must deal with the root cause of the economic downturn, and apply the right fix to turn it around. If housing is ignored, a significant downward overshooting of home prices would continue to drag the economy down independent of the scale of the stimulus,” Yun says.

This statement was before the Senate approved the $15,000 home buyer tax credit that may be approved by congress as early as next week.

Houses for sale in South Lake Tahoe are also seeing an increase in pending sales. In January there were 35 homes that went into escrow on theSouth Lake Tahoe mls. Out of the 35 pending houses, were bank owned foreclosures. Foreclosures in South Lake Tahoe still seem to be getting the majority of activity from home buyers. So far this February there have been 11 new single family escrows on the South Lake Tahoe mls, 4 of which are bank owned foreclosures.

This South Lake Tahoe Real Estate blog was postes by Brent Johnson. If you would like more information regarding real estate in South Lake Tahoe, foreclosures, or the South Lake Tahoe mls, contact Brent and Jill Johnson today!

South Lake Tahoe Real Estate blog-Senate Approves $15,000 Home Buyer Tax Credit!

First time home buyers looking at purchasing real estate in South Lake Tahoe may soon have an extra incentive. According to the Associated Press, last Wednesday, the Senate approved a $15,000 (up to 10% of the purchase price) tax credit for home buyers. The Tax credit would be for a primary residence including both new and existing homes.

Currently the tax credit is $7,500 and is only good for new primary residence homes. The credit is more of an interest free loan that will eventually need to be repaid to the government.

The new tax credit was brought to the table by the Republicans, and the Democrats agreed to put the credit on the bill. The credit is estimated to cost the government another $19 billion dollars, bringing the proposed stimulas package to around $920 Billion dollars.

There is a chance that the tax credit could get altered or even removed in the next week as it makes its way through Congress. Of all of the spending in the stimulus package, I think that the tax credit, or anything relating to the housing market is the most important!

This blog was posted by South Lake Tahoe Real Estate agent Brent Johnson. If you are a home buyer looking at houses for sale in South Lake Tahoe, make sure that you give Brent and Jill Johnson a call to find out more information. All South Lake Tahoe homes for sale on the South Lake Tahoe MLS can be viewed on our website bjohnson.idxcentral.net.

Make sure to look the list of foreclosures in South Lake Tahoe on my South Lake Tahoe real estate blog.

Houses for Sale in South Lake Tahoe- 1215 Margaret Street

Just listed on the South Lake Tahoe MLS!

1215 Margaret Street $289,000

This is the perfect starter home and has been recently remodeled. The kitchen has new cabinets, appliances and counter tops. New interior paint, tile floors, and double pane windows. Large fully fenced back yard with a double gate for additional boat/RV parking. The front yard has a covered porch and is fully landscaped. Ready to be moved into! Compare this cute home with all of the other houses for sale in South Lake Tahoe!

2 Bedrooms, 1 bath, 1 car garage
Double pane windows
New interior paint
Newer wood cabinets
Fully fenced yard

If you are looking at houses for sale in South Lake Tahoe, this little guy is a must see! This South Lake Tahoe Real Estate listing was provided by Brent and Jill Johnson, your South Lake Tahoe Real Estate professionals. For any questions about South Lake Tahoe real estate, the South Lake Tahoe mls, or foreclosures for sale in South Lake Tahoe, contact us today!

Bijou 1&2

The Bijou area in South Lake Tahoe is located between Pioneer Trail and Regan Beach, just west of Ski Run. The South Lake Tahoe MLS divides Bijou into two sections, Bijou 1 and Bijou 2. Bijou 1 is on the East side near Ski Run and Pioneer Trail, and Bijou 2 is on the west side near Highway 50 and Johnson Blvd. near the Bijou Golf course.

Bijou is one of the oldest neighborhoods in South Lake Tahoe. Centrally located near Heavenly, the casinos, and Lake Tahoe, making Bijou a great area for a primary or vacation home.

The Bijou Community Park located off of Al Tahoe Blvd. offers a playground, basketball, volleyball, a bmx and skate park, disk golf, and a dog park.

Also located in Bijou is the public Bijou Municupal Golf Course. This is a 9 hole golf course and costs $15 for El Dorado County residents, and $20 for non-residents for 9 holes.

Other close by activities include the ice skating rink, Regan Beach, and the South Lake Tahoe Recreation complex, which has a year round indoor/outdoor pool.

Single family homes in the Bijou area range from small older cabins in the $200,000 range, to remodeled and new homes priced over a million dollars. Some of the houses in Bijou may have mountain and/or meadow views, forest views, and are on relatively flat lots. There are also some areas in Bijou that have multi-family properties including duplexes and small apartment buildings.

Real Estate in South Lake Tahoe, 2009 Is The Time to Buy!

When you ask someone what they think about the real estate market, most people have only negative comments and feelings. I think the reason for this is all of the negative information that the media beats into our heads every day.

One statistic that caught my attention was that “one in ten homeowners is either in default or in foreclosure.” To most people that statistic sounds very bad, but is it? That statistic also means that 9 out of 10 homeowners are able to make their payments. What would you think if 1 out of 10 homeowners were poised to take advantage of the current buyers market and invest in more real estate? Sounds like good news, but it is not a doom and gloom gut wrenching ten o’clock news story

I began investing in real estate in South Lake Tahoe about 8 years ago. I was really into it. I would read investing books, articles, and talk to other investors as much as I could. I remember reading a book about a real estate investor who purchased hundreds of houses in Phoenix Arizona during the tough real estate market in the early 1980’s. I remember this well because our market was going up and up, and it was difficult for someone like me to be able to buy a bunch of properties. I thought to my self “I will never have the opportunity to buy in a buyers market like the rich investors I read about.” Boy was I wrong!

When the market started declining I thought it was terrible. I had been building spec houses and buying lots as fast as I could. I ended up loosing on the last couple of specs when the market really began to slip. I was just happy to dump them when I did. After that I was ready to change my investment plans and to adapt to the market. The buyers market that I thought I would never see was developing, and I am ready. Are you ready?

It is now a buyers market, but why are buyers still sitting on the fence? Buyers were willing to over pay in 2005 using risky sub-prime loans, but are now scared to buy when the timing could not be any better!

Here is the reason why there are “fence sitters” in a buyers market.

Fear- Buyers are scared of paying too much for a home. This makes sense, but where was the fear during the peak of the market?
Competition- It is human nature to want something that someone else has. I see it with my kids all the time. Sometimes the only reason you want a cirtain thing is so the competitor can not have it, or you just want to win the battle. I notice this when there are multiple offers on a property. A lot of times buyers will end up paying more for a property just to win. In a buyers market there is not a lot of buyer competition, so there is no sense of urgency for buyers to get off of the fence.
Lack of Knowledge about local markets – This is especially true for real estate in South Lake Tahoe. South Lake Tahoe is mostly a second home market, and is more stable than other areas. We have a lot of out of area buyers who don’t realize that our market is not as bad as most others. In 2008 foreclosures only accounted for 26% of sold homes in South Lake Tahoe. The national average was about 40%.

Why is 2009 the year to buy Real Estate in South Lake Tahoe?

NAR expects existing home sales to rise 6% to 5.3 million
NAR’s affordability index is expected to rise and stay around 128 in 2009. This means that households earning the national median income have 128% of the income needed to buy the national median-priced house.
The inventory of homes for sale in South Lake Tahoe is good, for now. There are still motivated sellers, foreclosures, and other great properties to choose from. As buyers get off of the fence, the inventory will shrink, and you may not find exactly what you are looking for.
Interest rates- Interest rates are historically low, and a 1% rise in interest rates can equal as much cost as a 10% increase in the sales price!
It is impossible to time the market- The buyers who are sitting on the sidelines waiting for the bottom will not see it until it is too late. Inventories will be lower, prices will be higher, and buyer competition will be back.

As long as buyers are looking to invest for the long term, now is the time to buy. The market has gone down, it is a buyers market, and historically the market has always gone back up!

To view the South Lake Tahoe MLS

For more information about South Lake Tahoe Real Estate please call Brent and Jill Johnson Today!

South Lake Tahoe Real Estate Review for 2008

In December 2008 there were 26 single family homes reported sold on the South Lake Tahoe MLS. This was a 16% decrease in sales compared to the 31 solds in November. Out of the 25 sold homes, 6 were foreclosures and 3 were short sales.

The December sold statistics are as follows

26 sold single family homes
Average sales price $523,490
Median sales price $412,450
Average days on market 204
Lowest priced sale $220,000
Highest priced sale $1,890,000
Total Volume $13,610,750

Click on the following link to view the statistical charts.

december-statistical-chart

In December there were only 18 houses that went into escrow. Out of the 18 homes, 8 were foreclosures, and 4 were short sales.