Home For Sale in South Lake Tahoe!

July 21, 2014

Upcoming on the market soon is a South Lake Tahoe home for sale! This is a Lake Tahoe home which backs to a meadow at an affordable price. It has some nice upgrades to make it move-in ready. All you have to do is enjoy the meadow view from your backyard. This has 2 bedrooms, 1.5 baths and a garage and the asking price is $245,000. Call Jim Wire for viewing, 530-314-9008.

South Lake Tahoe Home Sales Are Showing Stablization!

July 21, 2014

If you have a home for sale in South Lake Tahoe, you may have found yourself reducing the price to procure and offer.  Additionally, this may have been the third price reduction that you have done.  You are not alone and many sellers are experience the same trend.  It’s not just limited to South Lake Tahoe but it’s something that has been happening on a national level as well.

So what is going on?  To start with, there are a lot more sellers on the market with their homes which is creating more competition.  Additionally, most of the sellers that have listed their homes for sale in South Lake Tahoe within the last 90 days had been very optimistic about pricing.  Now that the supply of homes on the market has met the demand, only the better priced homes are selling quickly.  This is an indication that the real estate values in South Lake Tahoe are leveling.  Again, this is in sync with the rest of the country.  It could be that the housing market got ahead of itself and it is now adjusting to the overall economy.

If you are looking for homes for sale in South Lake Tahoe, then you are probably finding more homes to choose from.  It was only about 3 months ago that there was a shortage of homes on the market and values were on the rise.  If you did make an offer on a home, you were probably one of several.  Like most buyers, your offer was rejected and there were no other homes to look at.  However, things have changed and you are now in the driver’s seat.  Like most buyers, you are recognizing the slower market and waiting for the right thing to come along.

Whether you are a buyer or a seller, keep in mind that the market may not be as stable as it seems.  The tide could change as summer ends and we approach the winter months.  The supply of homes on the market usually peak in July and August.  This could dramatically reduce the number of homes for sale in South Lake Tahoe and reverse the tide for the sellers.

With interest rates still low and the home prices leveling off, this could be the right time to buy.  Adding to that, the selection is better than it has been for the past year.  It’s always been my belief that if you wait for all of the stars to align perfectly, you’ll miss your opportunity!  When you see something you like, don’t hesitate because you may regret it!  I’ve seen too many people who have done just that!  For more assistance, call a Lake Tahoe real estate agent, Jim Wire, 530-314-9008.

Lake Tahoe Home Sale Weekly Report for East Shore of Nevada 7/18/14

July 18, 2014

What you are looking at below are charts and numbers derived from the Northern Nevada Regional Multiple Listing Service for Single Family Homes and Condos for the East Shore. I just started tracking condos with homes as of October 28th, 2009 which will be give different results from previous market reports. The reason that I use this segment of the market is that it has the most influence on the general value trends.

Lake Tahoe home sales on the east shore of Nevada are cooking!  The rate at which homes are selling is above the average.  To measure the most current buyer activity, I use the Market Activity Ratio which is the relationship between the number of homes on the market and the pending sales.  This past week the Market Activity Ratio had increased by .3% to show that 19.5% of the available homes on the market are now pending sales in escrow.  This is due to the number of homes on the market increasing by 1 as the pending sales decreased by 1.  There are 3 bank owned foreclosures and 4 short sales currently on the market.  The distress sales represent 4.3% of the available inventory and 15.4% of the pending sales.

This past week there were 6 completed sales for a YTD total of 98 sales.  There were 3 town home sales ranging from $157,000 to $296,000.  The top 3 sales were on Beverly for $425,000, Hopi Ct for $625,000 and a lakefront on Tamarack for $7,250,000.  This had significantly increased the 6 month average sales price by 4.3% to $1,001,160.  The average days on market are 156 days.

South Lake Tahoe Home Sale Weekly Report for 7/17/14

July 17, 2014

As of July 29th, 2009, I began adding Condos to the market statistics. What you are looking at below are charts and numbers derived from the South Tahoe Association Of Realtors Multiple Listing Service for Single Family Homes and Condos. The reason that I use this segment of the market is that it has the most influence on the general value trend.

The South Lake Tahoe home sales have been surging since prices leveled off while the inventory had increased.  This past week there were less homes coming on the market.  If inventory continues to drop, will this push prices higher?  To measure the most current buyer activity, I use the Market Activity Ratio which is the relationship between the number of homes for sale and the pending sales.  This past week the Market Activity Ratio had increased by 1.9% to show that 21.9% of the homes available on the market are now pending sales in escrow.  This is due to the number of homes for sale decreasing by 4 as the pending sales increased by 9.  There is only 1 bank owned foreclosure and 3 short sales on the market.  The distress sales only represent 1.2% of the available inventory and 11.7% of the pending sales.

This past week there were 11 completed sales for a YTD total of 317 sales.  Half of the sales were below $372,500 with the lowest sale for $165,000.  The top three sales were on Elk Point Dr for $764,000, Bellevue Ave for $865,000 and Pony Express for $928,000.  This had increased the 6 month average sales price by 1.2% to $404,105.  The average days on market are 119 days.

 Listings per Status
%Jim Wire %Real Estate Lake Tahoe

Area Market Survey
Summary

Listings as of 07/17/14 at 9:44pm
Active
Listing Price Range Quantity Average DOM
$100,000 thru $119,999 1 41
$120,000 thru $139,999 1 79
$140,000 thru $159,999 3 56
$160,000 thru $179,999 12 112
$180,000 thru $199,999 8 81
$200,000 thru $249,999 14 88
$250,000 thru $299,999 33 66
$300,000 thru $349,999 44 90
$350,000 thru $399,999 43 76
$400,000 thru $449,999 23 141
$450,000 thru $499,999 20 86
$500,000 thru $549,999 30 81
$550,000 thru $599,999 11 70
$600,000 thru $649,999 11 90
$650,000 thru $699,999 15 94
$700,000 thru $749,999 7 61
$750,000 thru $799,999 8 157
$800,000 thru $849,999 7 117
$850,000 thru $899,999 3 270
$900,000 thru $949,999 3 88
$950,000 thru $999,999 3 32
$1,000,000 thru $1,249,999 6 113
$1,250,000 thru $1,499,999 14 127
$1,500,000 thru $1,749,999 3 338
$1,750,000 thru $1,999,999 4 257
$2,000,000 thru $2,249,999 1 55
$2,250,000 thru $2,499,999 1 14
$2,500,000 thru $2,749,999 1 176
$3,000,000 thru $3,249,999 2 76
$3,250,000 thru $3,499,999 1 23
$4,250,000 thru $4,499,999 1 609
$4,500,000 thru $4,749,999 1 440
335 99
Summary Price Information
Minimum $119,000 Maximum $4,700,000
Average $585,023 Median $429,000
Pending
Listing Price Range Quantity Average DOM
$120,000 thru $139,999 1 192
$140,000 thru $159,999 1 41
$160,000 thru $179,999 2 115
$180,000 thru $199,999 1 59
$200,000 thru $249,999 9 52
$250,000 thru $299,999 15 54
$300,000 thru $349,999 12 93
$350,000 thru $399,999 13 57
$400,000 thru $449,999 11 77
$450,000 thru $499,999 7 91
$500,000 thru $549,999 4 131
$550,000 thru $599,999 6 94
$650,000 thru $699,999 2 125
$700,000 thru $749,999 3 134
$750,000 thru $799,999 1 14
$850,000 thru $899,999 1 321
$900,000 thru $949,999 1 175
$950,000 thru $999,999 1 53
$1,000,000 thru $1,249,999 2 58
$6,000,000 thru $6,999,999 1 35
94 81
Summary Price Information
Minimum $125,000 Maximum $6,900,000
Average $489,384 Median $383,950
Equal Opportunity Housing * All information deemed reliable, but not guaranteed.
Info deemed reliable but not guaranteed. DOM may not reflect total days property has been on market
Copyright ©2014 Rapattoni Corporation. All rights reserved.
U.S. Patent 6,910,045

Area Market Survey
Summary

Listings as of 07/17/14 at 9:44pm
Sold
Selling Price Range Quantity Average DOM
$80,000 thru $89,999 1 60
$100,000 thru $119,999 4 252
$120,000 thru $139,999 2 76
$140,000 thru $159,999 1 348
$160,000 thru $179,999 12 114
$180,000 thru $199,999 11 185
$200,000 thru $249,999 49 102
$250,000 thru $299,999 38 90
$300,000 thru $349,999 41 95
$350,000 thru $399,999 31 92
$400,000 thru $449,999 18 202
$450,000 thru $499,999 18 111
$500,000 thru $549,999 16 174
$550,000 thru $599,999 17 115
$600,000 thru $649,999 10 143
$650,000 thru $699,999 6 148
$700,000 thru $749,999 6 120
$750,000 thru $799,999 3 104
$850,000 thru $899,999 1 63
$900,000 thru $949,999 1 98
$1,000,000 thru $1,249,999 3 123
$1,250,000 thru $1,499,999 4 145
$2,000,000 thru $2,249,999 1 0
$4,000,000 thru $4,249,999 1 45
295 119
Summary Price Information
Minimum $87,500 Maximum $4,095,000
Average $404,105 Median $337,000
Equal Opportunity Housing * All information deemed reliable, but not guaranteed.
Info deemed reliable but not guaranteed. DOM may not reflect total days property has been on market
Copyright ©2014 Rapattoni Corporation. All rights reserved.
U.S. Patent 6,910,045

California Attorney General Pushes For BMP Compliance!

July 11, 2014

For those that aren’t familiar with BMP, it is an acronym for Best Management Practices.  The TRPA (Tahoe Regional Planning Agency) requires both public and private land parcels to control water runoff from their properties.  Examples of this are features such as trenches filled with filter paper and rock under roof eaves to capture snow melt and rain water as it runs off from the roof.  There are various other features that capture water runoff from other surfaces such as driveways.  Sometimes it may include stabilization of soil with the use of retaining walls.  You may find more information regarding BMP features at ww.TRPA.org.

The purpose of BMP implementation is designed to control or reduce soil erosion from water runoff which carries particles to the lake.  The particles carry nutrients which promote algae growth and compromises its clarity.  The measurement for water and soil runoff is referred to as TMDL (Total Maximum Daily Load).  The objective is to reduce the TMDL by controlling storm water drainage from roads and land parcels.  The Lahontan Water Board has done studies to show that roads create far more TMDL runoff than any other source.  Single family homes contribute the least amount which in comparison looks almost insignificant.

Despite the disparity of TMDL runoff from between roads & homes, the California Attorney General, Dan Siegel and Clem Shute have made it their mission to push a “BMP point of sale enforcement” upon the homeowners.  Both are a members of a work group formed by the Lake Tahoe EIP (Environmental Improvement Program) and TRPA to find ways and make recommendations to expedite BMP compliance.   The group is also comprised of governmental agencies from California and Nevada, League to Save Lake Tahoe, Business Representative (Nevada real estate advocate) and a non-affiliated technical expert.

The group recently met on July 8th, 2014 to discuss the most contentious topic regarding “BMP Point of Sale enforcement” for real estate transactions.  This is something that has been debated for years and it has been defeated every time that it came up.  The compromise was to task real estate agents with educating buyers about BMPs.  To accomplish this, the TRPA created a disclosure form that was to be delivered to all buyers in a real estate transaction.  It requires both the buyer and the seller to sign it.  After close of escrow, the buyer must deliver it to the TRPA to show that they are now knowledgeable.  Basically it was to put the buyers on notice that if the property had not already been BMP certified, then they would be required to implement it.  The deadline was October 15th, 2008.

Presently, the TRPA estimates that there is about 30% compliance on the south shore and about a 70% compliance on the north shore.  Discouraged by the lack of compliance, the CA Attorney General feels that there should be more immediate enforcement.  The TRPA does have Federal authority to potentially fine homeowners $5,000 per day until compliance has been obtained.  The CA Attorney General is proposing to target real estate transactions by requiring the BMPs to be implemented before the close of escrow.  In the real estate community this is referred to as a “point of sale enforcement.”

The real estate community is opposed to the “BMP point of sale enforcement” for several reasons.  The most troubling concern is that it would eliminate a large portion of the winter sales.  According to the South Tahoe Association of Realtors MLS (STAR MLS) data, 80% of the sales this past year are non compliant properties.  The cost of BMP implementation is usually a minimum of $5,000 but it could exceed $20,000 depending on the complexity of the project.  For a lot of homeowners, they are still trying to recover from a housing crash and this would exasperate their plight.  Because BMPs involves moving dirt, it is restricted to building season only.

However the main issue for the real estate community is that it’s just unfair enforcement.  Targeting homeowners that are selling their properties represents a small percentage.  If you look at the number of sales per year and reduce it by the number of homes already in compliance and repeating sales, the number of noncompliant homes will be reduced to a much smaller number.  Using data from the STAR MLS, I estimate that it would take at least 27 years to bring most but not all homes into compliance with a “BMP point of sale enforcement.”  Besides it would be sending the wrong message to homeowners.  Homeowners will realize that the best way to avoid BMP compliance will be to not sell their home or they will wait until they are ready to sell.  Prolonged compliance will be the unintended consequence.

There are economic considerations.  Lake Tahoe home sales could be reduced by as much as 50%.  Because the real estate industry represents a large percentage of the local economy, it would affect related businesses such as title companies, local mortgage brokers, contractors, service shops and home material suppliers.  Then you have the trickledown economics which affects other dependant local businesses.

A large number of real estate agents showed up for the workgroup meeting on July 10, 2014.  Before the public comment session began, the workgroup decided to table the “BMP point of sale enforcement.”  However they left a revised BMP disclosure on the table.  The revision requires the buyer to complete the BMPs within 1 year after the real estate transaction.  It also includes language that property owners can be subject to a fine of $5,000 per day.  Clem Shute made a comment saying that he would like to see the 1 year compliance shortened.

There were a few of the workgroup members that were in favor of discarding the revisions and focusing on more on area wide BMP implementation.  This is involves both public and private property owners to work together.  There are already projects that have done this with the primary focus on the roadways.  The real estate community supports this kind of collaboration to find solutions neighborhood by neighborhood.  This could reduce the pressure from the private owners to reduce the TMDL and make the roadways the primary solution.  For homeowners with hardships, the government entities may be better equipped to offer assistance.  This type of approach will be more efficient and achieve compliance in a timelier manner.  “BMP point of sale enforcement” only offers random selection without any overall master plan which will not be as effective or efficient.  How do you feel about “BMP Point of Sale Enforcement.”

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