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.
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