The Numbers are Up in South Lake Tahoe
The South Lake Tahoe real estate market trends are showing signs of continued improvement. Whether or not the number of increased sales are due to short sales, REO’s, or first time home buyer credits, sales are sales. When compared to 2009, the number of sales as well as the sale to list ratio show improvement. The following statistics reflect activity between January 1 and March 8th in regards to single family residences only. So far this year, there were 69 homes reported as SOLD within the South Lake Tahoe Association of Realtors’ Multiple Listing Services. Among these 69 sales, the sales to list ratio averaged 101.78% for those homes sold within 31 – 60 days on the market. (This time period includes the accumulation of days from being posted as a new listing through the escrow period.) Homes that sold within 61 – 90 days on the market averaged 96.94% and those that sold 91 – 120 days averaged 92.16% of the asking price.
The same time period in 2009 showed 52 homes sold with an average of 96.61% when sold in the first 60 days, 94.04% when sold within 61-90 days and 90.69% when sold 91-120 days on the market. During 2008, there were 36 sales with an average of 99.06% when sold within the first 60 days, 98.39% when sold within 61-90 days and 90.69% when sold within 91-120 days on the market.
Although the sale to list ratio for the same time period in 2008 was more similar to those we are experiencing in 2010, there were only 36 reported closings.
South Lake Tahoe Real Estate Market Update, Feb. 18- Mar.3
It has been a rather busy couple of weeks here in the South Lake Tahoe real estate market. According to the South Tahoe Association of Realtors, the South Lake Tahoe real estate market showed 21 NEW LISTINGS over the past 2 weeks. Among this most recent activity, the lowest priced new listing is $185,000 for 837 Tata, a 2 bedroom, 1 bath with 672 square feet. The highest priced new listing is $1,400,000 for 1707 Sherman, a 7 bedroom, 4 bath with 4000 square feet. The median listing price was $399,000.
Now, check this out! There were 29 homes that went into ESCROW in the last 2 weeks. The lowest priced new escrow is $99,000 for 2196 Big Pine, a 1 bedroom, 1 bath with 475 square feet. The highest priced new escrow is $739,000 for 236 Uplands (yeah Pinnacle for representing both the buyer and the seller), a 4 bedroom, 2.5 bath with 3111 square feet. The median pending sale price is $334,500 with an average time on market of 63 days.
The market continues to show signs of leveling with 15 CLOSED SALES over the past 2 weeks and a variety of styles and price ranges benefitted. The lowest sale price was $75,000 for 1281 Bonanza #5, a 2 bedroom, 1 bath with 840 square feet. The highest sale price was $925,000 for 4135 Saddle, a 2 bedroom, 2 bath with 1874 square feet. This home sat on a knoll with nearly an acre of land and majestic lake views. Once the new owners are done with their project, they will have magic on their hands. Wrapping up the story for the past couple of weeks, the median sale price was $315,750 and the average time on the market (including the escrow period) was 140 days.
South Lake Tahoe Real Estate Market Update, Feb. 4- Feb. 12
According to the South Tahoe Association of Realtors, the South Lake Tahoe real estate market showed 12 NEW LISTINGS this past week, down from the previous week’s 30. The lowest priced new listing is $154,440 for 1032 Ham, a 2 bedroom, 1 bath with 720 square feet. The highest priced new listing is $1,250,000 for 483 Lido, a 3 bedroom, 2.5 bath with 2651 square feet. This week’s median listing price is $379,700.
There were 14 homes that went into ESCROW this past week, up from the previous week’s 9. The lowest priced new escrow is $165,000 for 2695 Armstrong, a 2 bedroom, 2 bath with 912 square feet. The highest priced new escrow is $1,195,000 for 1934 Marconi, a 4 bedroom, 3 bath with 2628 square feet. The median pending sale price is $341,890 with an average time on market of 98 days.
The number of closed sales this past week was 10, down one from the previous week. The lowest sale price was $172,100 for 1964 Cherokee, a 3 bedroom, 2 bath with 1088 square feet. The highest sale price was $775,000 for 2341 Cold Creek, a 4 bedroom, 3.75 bath with 2703 square feet. The median sale price was $307,000 and the average time on the market (including the escrow period) was 101 days.
January 2010 Newsletter
2010 Here We Come.
Can someone tell me if I am going crazy? While packing away the Christmas ornaments, pangs of guilt hit me hard. I swear, everyone of my Mark Roberts’ fairies pleaded with their eyes not to be put back in their boxes. “We just got out” “Please, don’t do this to us.” It’s so lonely in here.” I suppose in many ways, the same holds true when thinking of the 2009 highlights.
Although it was a difficult year in so many way, if you really take the time to think about it, there were so many more gifts. Do it. Take a bubble bath, massage, or meditate and slowly go through the images in your mind, month by month of all you accomplished, witnessed and shared. I am willing to bet there are smiles a-plenty. What’s included in this month’s newsletter? Let’s see. There is the usual real estate market comparisons (it is what we do after all).
This month’s newsletter features articles on the local and national real estate markets, an update in our business, and upcoming events. Enjoy and be sure to click on the little video found at the end of the upcoming events.
South Lake Tahoe Market Update
The end of the year stats are in and the news is TERRIFIC (if you are a buyer.) The South Lake Tahoe multiple listing services reported that as of Jan. 4, 2009, the median home price at the end of December (when compiling data from the entire previous 12 months) had reached its lowest level since late 2003. In fact, the overall values have dropped approximately 35% since the peak in 2006. Be sure to check out the graph included at the end of this article.
Here’s the good news for home owners. Overall, the values have held pretty steady for the past three months AND the inventory is depleting. In fact, as of Dec. 31, 2009, the number of active listings for single family homes in the South Lake Tahoe area was 360 of which 70 are in escrow. This is the lowest inventory count since February of 2007 when there were 352 active listings yet only 25 were in escrow.
For the month of December, 48 homes were reported sold with a median home price of $346,500 (note that this is higher than the overall median for the previous 12 months reported above) as compared to the same month in 2008 where only 26 homes were sold with a median home price of $412,450. Of the homes sold this past December, those sold within the first 30 days averaged a sale to list ration of 99.22% Foreclosure sales had a heavy influence on these numbers.
So. Tahoe Median Home Price Graph
Souers & Pinnacle Update
Time is flying by and with amazement, we celebrated our third year of owning our new business. Now that I think about it, I guess we aren’t so new any more. In fact, with all of the change of companies and mergers in our area, we are almost “old school.”
With great pride (and a lot of hard work behind us,) the Pinnacle Real Estate Group was listed among the top three brokerages in overall sales throughout the South Lake Tahoe area. (Reneber the saying, #2 tries harder – watch out for us next year.) When you consider that the other two companies have at least three times the number of agents, our high ranking represents quite an accomplishment. We also personally ranked among the top five in agent production. Again, lots of work with great satisfaction.
On a final note, I am proud to announce that I will be serving as the 2010 President of the South Tahoe Association of Realtors. Although this position adds to the year’s work load, it also enhances my professional contacts and information sources. I look forward to the year and will keep you posted of highlights throughout the year.
Shame, Shame
This past summer, I experienced the most mind- boggling evidence of how “out of hand” the process of obtaining loans or short sales can get. Sadly, one of my clients was needing to sell his home for less than that which was owed (certainly not out of the norm these days.) We did find a willing buyer and in the process of trying to obtain short sale approval, the bank holding the note, hired a “team” to discover the true value of the home in today’s market. I won’t go into great detail, but let me share with you the following: That “team” in turn hired a real estate agent from out of the area that never even came to see the house. Through some investigation, we discovered that he hired someone through Craig’s List and together with some photos and mis-information, came up with a value that was far above current market value. End of the story? The short sale was denied, the seller lost the home in foreclosure and the bank ended up listing the home with that same out of area brokerage. And guess what? The home eventually sold for less that the offer we presented months earlier EVEN AFTER the bank had the home painted and new carpets installed. Sadly, this story is not unique. It has gotten out of hand. Really out of hand.
The incident above was the result of out of area agent working beyond their expertise and it cost my client dearly. Another area in which we are experiencing difficulties comes from a pendulum swing within the lending industry where lenders are no longer able to request a particular appraiser. They now put the bid out to a pool of appraisers wait to see who accepts the job. The problem here is that, once again, we are dealing with the potential of being assigned to “out of area professionals” working beyond their expertise, I have seen a two bedroom, one bath, no garage, 1970’s cabin appraise for nearly the same value as a three bedroom, 2.5 bath home with a double garage built in 2002. It’s crazy and often, pardon my language, a crapshoot.
Fortunately, signs of possible relief are on the way. According to the California Association of REALTORS®, agents and their clients “who encounter unlawful or unprofessional conduct by an appraiser may file a confidential complaint with California’s Office of Real Estate Appraisers (OREA).” These complaints of appraiser’s misconduct may be filed with the OREA may be made confidentially, but you should know that if future prosecution is a result, you may be required to testify in a legal proceeding. It’s a mess yet I feel as though great improvement is on the way.
The following list will provide resources in which to address such appraisal issues: compilation of resources for REALTORS® and their clients:
- California Office of Real Estate Appraisers website is at www.orea.ca.gov.
- OREA’s Consumers’ Guide: Filing a Complaint and the Investigation Process.
- OREA’s Complaint Form and Instructions.
- Text of the Home Valuation Code of Conduct.
- Fannie Mae’s HVCC Frequently Asked Questions (FAQs).
- Federal Housing Finance Agency Notice dated July 22, 2009 addressing certain HVCC issues.
National Real Estate News & Forecasts
Good Faith Estimates have been in use for many years. We’ve all seen them, signed them, tried to understand them. Yet, lenders have never been required to use a standard form. Starting Jan. 1 of this year, new rules will require lenders and mortgage brokers to provide customers standard estimate forms within three days of receiving a loan application.
This form requires lenders to combine all of the bank’s various fees, no matter what they call them, into one “origination charge,” with the purpose of allowing consumers to truly compare rates among various institutions. Although lenders are not allowed to increase the origination fee from that which was provided in the estimate, additional charges, including title services and recording charges, can increase by as much as a combined 10 percent.
Buyers and sellers will see another change within the HUD-1 form used by title companies prior to closing an escrow. This new HUD-1 includes a comparison of the estimated and the actual final costs, as well as a summary of the loan terms.
January Happenings
Lots of snow, perfect weather for the holiday tourists and 2010 is underway. Check out the highlighted events taking place during the upcoming weeks.
Tahoe Home Lookout Services
This could be the perfect time to get ready for the upcoming stormy months. Check them out! Just click on their logo or the link below and rest a bit more this winter. |
December 2009 Newsletter
Let the “Swoosh” Begin
Honestly, there is nothing quite as wonderful as a snowy Christmas season. The decorations are popping up all around South Lake Tahoe, windows are being painted and yes, the Christmas channel can be heard on most radios. Our business partner, Michelle, even commented that our office looked like “Christmas on steroids.” This is quite a change from last year at the same time and why – SNOW! It’s here and more to come. This month’s newsletter features articles on the local and national real estate markets, changes in your Tahoe utility bills, and upcoming events. Enjoy and be sure to click on the little video found at the end of the upcoming events.
South Lake Tahoe Market Update
FINALLY! For the first time in 2009, the median home price for homes reported sold within the South Lake Tahoe multiple listing services remained level for two months. For too long now we have watched the median home prices sink lower and lower. MORE GOOD INDICATORS! The current inventory of active listings is considerably lower. For the first time in 2009, we have less than 400 homes on the active market. As of November 30th, there were 390 active listings with 89 of those in escrow. Compare that with the 561 active listings in July. Even then, there were only 88 homes in escrow. We would call that significant improvement!
Furthermore, the number of sales are also on the rise (just as in the reported national levels.) During the month of November, there were 40 closed escrows with an median of 127 days on the market while the same month in 2008 reported 31 homes sold with 129 days on the market. Even when looking at the year to date (Jan. 1 – Nov. 30,) there have been 386 reported sales as compared to 330 during the same period in 2008.
Pass the word – those that have been waiting for the bottom of the market might want to be paying closer attention these days. Check out the comparison graph below.
So. Tahoe Median Home Price Graph
Local Electric Bills are on the Rise
Yikes – Baby, it’s gonna get cold inside! Sierra Pacific Power customers throughout Northern California, including South Lake Tahoe, will soon see higher bills with new rates starting December 1, 2009. A 7.75% increase was approved by the California Public Utilities Commission which calculates to approximately a $5.5 million growth. A recent press release from the Nevada Energy predicted that “a typical residential customer using 650 kilowatt-hours of electricity could see an increase of about $5.49, a 7.21 percent increase per month, from $76.16 to $81.65. Looks like we will be seeing more of those Christmas sweaters than in years past.
Sluggish Modification Programs Being Threatened
It looks as though steps are being taken to “shame” the mortgage companies “into doing a better job.” According to an article published within the SF Chronicle, the “Treasury will soon be publishing a list of mortgage companies that are dragging their feet when it comes to helping borrowers complete the necessary paperwork required for the current administration’s loan modification program.
The article went on to report that the Treasury Department officials state that they will “step up pressure on the 71 companies participating in the government’s $75 billion effort to stem the foreclosure crisis.” Starting this week, tthe eight largest companies will be visted by three person “SWAT” teams to monitor and request twice-daily reports on their progress thus far.
National Real Estate News & Forecasts
They’re baby steps for now, but slight breezes of change are in the air. The National Association of Realtors is anticipating a 4.8% jump in 2009 sales of previously owned homes which is higher than the 2 % annual rise they had forecast only a month ago. Also, NAR reported that its index gauging pending sales of resale homes gained for the ninth month in a row in October and recorded a 31.8 percent gain compared to the same month last year.
This is the first time such a series was recorded since the 2001 creation of the Pending Home Sales Index. The rise as compared to a year ago, is the biggest annual increase ever recorded for the index, and at the highest level since March 2006. NAR’s chief economist, reported “home sales are experiencing a pendulum swing.” and reminded folks to “keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.
It is also pointed out that it is important for folks to remember that due to the time it takes for buyers to make offers and close escrow and the recent news that the first time home buyer credit had been extended, it is highly likely that we will see a temporary decline in closed existing-home sales between December and early spring. At that point, we should see another surge.
The recovery process will remain slow as long as unemployment continues to run high numbers. Never-the-less, decreasing inventories will eventually bring about a balance between the “Buyer” and “Seller” markets. Again, baby steps – but we’ll take them.
December Events
It’s definitely beginning to look a lot like Christmas, BUT – before you take a look ahead at what’s coming our way in December, be sure to click on the link below to have a peek back at November.
Tahoe Home Lookout Services
This could be the perfect time to get ready for the upcoming stormy months. Check them out! Just click on their logo or the link below and rest a bit more this winter. |