2012 STAR Board Gets Underway – Souers Team Pretty Involved
2012 BOARD OF DIRECTORS
It sure looks like the Souers team and members of the Pinnacle Real Estate Group of Lake Tahoe are going to, once again, be pretty active within the South Lake Tahoe Association of REALTORS® leadership team. As we put this press release together for our local media, we realized that our team was named in numerous elements.
The 2012 South Tahoe Association of REALTORS® kicked off the new year with a Leadership Retreat this past Wednesday, January 25th. The main topic of the agenda was focused on goals for the year, how best to represent the rights of Lake Tahoe homeowners and getting the various related committees underway. The 2012 Leadership Team is made up of:
- President: Jill Teakell – C21 Tahoe Paradise
- President Elect: Ken Daley – Re/Max Realty Today
- Vice President: Brooke Hernandez – Chase Int’l So Tahoe Realty
- Secretary Treasurer: Natalie Yanish – Deb Howard & Co
- Immediate Past President: Amanda Adams – Re/Max Tahoe Realty
BOARD OF DIRECTORS
- Pamela Francis – C21 Tahoe Paradise
- Judith Hanson – Chase Int’l So Tahoe Realty
- Pam Belli – Coldwell Banker McKinney & Assoc
- Sheila Edner – Chase Int’l South Tahoe Realty
- Michael Keller – Keller Properties
- Jaime Souers – Pinnacle Real Estate Group
- Dan Spano – Paradise Real Estate
- Jesse Yohnka – Re/Max Realty Today
COMMITTEE CHAIRS
- Community Service: Ellen Camacho – Deb Howard & Co.
- Communications & Public Relations: Theresa Souers – Pinnacle Real Estate Group
- Education: Fawne Hayes – Century 21 Tahoe Paradise
- Grievance Chair: Steve Eisen – McCall Realty
- Local Government Relations: Jill Stanton Bricker – Re/Max Realty Today
- Long Term Planning Chair: Kathy Southern-Mountain View Management
- MLS Tour Director: Nanda Dozier – Pinnacle Real Estate Group
- Professional Standards Chair: Michelle Benedict – Pinnacle Real Estate Group Property Management Chair: Chris Chandler – Coldwell Banker McKinney
- Scholarship Chair: Steve Costanza – McCall Realty
- M.L.S Chairs: Don Souers – Pinnacle Real Estate Group
- Joe Filipko – Chase Int’l So Tahoe Realty
Following a successful 2011, the South Tahoe Association of REALTORS® honored the following members for their outstanding efforts and leadership:
REALTOR® of the Year: Amanda Adams – Re/Max Realty Today
Distinguished Service: Jill Stanton Bricker – Re/Max Realty Today
Community Service: Jim Wire – Chase Int’l So Tahoe Realty
Rookie of the Year: Natalie Yanish – Deb Howard & Co
South Tahoe Assoc. of REALTORS® Receive State Grant
The California Association of REALTORS® recently recognized the efforts of the South Tahoe Association of REALTORS® in their efforts to work in behalf of representing the rights of property homeowners throughout the South Lake Tahoe area. During the recent C.A.R. Business meetings held in Indian Wells January 17th – 21st, C.A.R. awarded the South Tahoe Association of REALTORS® with a $5,000 state IIMPACT grant. The purpose of the grant is to pay for S.T.A.R.’s Governmental Affairs Director, Hayley Williamson to attend the accelerated Tahoe Regional Planning Agency meetings focusing on the updating of its regional plan. Williamson is also responsible for representing South Tahoe REALTORS® at these meetings as well as bringing back information to the S.T.A.R. Board of Directors. In addition, the state IMPAC funds will allow STAR Association’s members to learn about the new laws affecting our region through advocacy and policy education such as new zoning ordinances, height restrictions, and community goals that TRPA is considering.
This update will be the first since the late 1980s. The TRPA’s regional planning committee is holding meetings throughout the winter and spring of 2011-2012 to update the Regional Plan. The TRPA intends to have the new Regional Plan in place by the end of 2012. At TRPA planning meetings, stakeholders meet all day to discuss how they want to update the regional plan. STAR’s representation is felt to be vital as the TRPA’s regional plan will have a direct affect on how people buy and sell homes in the Tahoe Basin. The TRPA has requirements instructing REALTORS® to give out disclosures regarding TRPA regulations to homebuyers and home sellers. The TRPA says in its own mission statement that it relies on public-private relationships to meet environmental goals.
Along with CAR’s recognition of the importance for STAR’s involvement with decisions that could affect the South Tahoe area, they acknowledged that the decisions made by the T.R.P.A. could have an effect on the state of California as well. If the TRPA passes ordinances mandating point-of-sale issues, it may set a precedent for other point-of-sale mandates across the state. Furthermore, since the TRPA must abide by California’s new sustainable communities laws (passed in 2010), how the TRPA interprets and implements these California statewide laws will set a statewide precedent. For this reason, CAR has encouraged STAR to seek a similar grant on the National level and offered to assist in the effort to do so.
Loan Limit Amounts Reduced
Just this past week, Congress restored the loan limits for the Federal Housing Administration (FHA) for two more years. As you may have heard, this past September the FHA, Fannie Mae; and Freddie Mac loan limits were, much to our surprise, reduced in 42 states which resulted in homes that might have qualified for conventional loans by potential home buyers being outside the loan limits. Just what we needed, another stall in the housing recovery.
The good news is the the NATIONAL ASSOCIATION OF REALTORS® got on the bandwagon and put strong efforts toward the goal of having Congress restore the loan limits. What a battle that was! Through the efforts of REALTORS® across the country, Congress was persuaded to that well-qualified buyers didn’t need yet another hurdle to access affordable mortgage financing. According to Moe Veissi, NAR’s 2012 President, “The reinstated FHA loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties in 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000. The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets, the floor will remain at $271,050. However, Congress chose not to apply the loan limits restoration to Fannie Mae and Freddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115 percent of local area median home prices up to $625,500.”
Veissi went on to explain, “The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011. NAR will continue to press Congress to use the additional time to complete their work on a five-year reauthorization of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.”
Hats’ off, applause to my fellow association members. Job well done. Now, let’s get those homes sold.
Why So Many Cash Buyers in South Lake Tahoe Real Estate Market?
It dawned on me the other day that I was overhearing quite a few Lake Tahoe REALTORS commenting on the significant increase in the number of cash buyers they had recently been representing. In fact, Don & I have been finding the same to be true within our own group of current buyer prospects. While we are acutely aware of the current rare opportunity combining record low interest rates with deflated property values, why so many cash buyers? They don’t need the low interest rates.
Lately, it seems as though nearly every form of media coming our way provides conflicting reports as to whether or not the real estate market has “reached the bottom.” Just last week, I was watching the Today Show during which one half hour segment showed an investment reporter spouting doom and gloom and ten minutes later, a “real estate guru” was heard stating something along the lines of “if you are waiting to purchase, you are out of your minds. Buy NOW.” And again, I wondered, why so many cash buyers? Then just this morning, it hit me. From deep in my tired brain cells, I remembered the old adage, “Follow the money.”
Home prices in many parts of the country are still declining and, while Lake Tahoe has held relatively level over the past year, at the end of February, 2011, according to the South Lake Tahoe Association of REALTORS’ Multiple Listing Services, the median home price did drop to $315,500, it’s lowest level in over seven years. While I was disappointed to see this number following what was appearing to be a slow and steady improvement, I wasn’t too surprised as our market generally sees lower values during the winter months. After all, following enough good snow storms, many sellers start to feel that their home will “never sell” and become more willing to negotiate. That and the continual R.E.O and short sale inventory offer many opportunities for buyers to shop for the best deals.
According to the National Association of REALTORS, the sales of existing homes rose for the 3rd straight month in January. It was reported that sales of existing homes rose 2.7% in January to a seasonally adjusted annual pace of 5.36 million homes. Existing homes sales were up 5.3% over January 2010. The inventory of homes on the market stands at a 7.6 month supply. And check this out, cash sales were 32% of the market in January with investors making up 23% of the market.
Why so many cash buyers? Follow the money. Let’s take a look at Lake Tahoe’s historical pool of buyers. Our market generally follows the San Francisco Bay area by about six months to a year. According to reports published by C.A.R as well as stories we are hearing from many of our Bay area peers, prices appear to be climbing and multiple offers are once again, part of their landscape. If their market is turning, are better times ahead for us this time next year? We wish we had the answers for you however, take a look at the month to month median home prices for the South Lake Tahoe area and decide for yourself. Is now a good time to invest? Our cash buyers certainly seem to think so.
Median Home Prices STAOR
Appraising the Appraisal Situation
It’s been a packed couple of days here at the California Association of Realtor’s Business Meetings and the information gained is overwhelming. As promised, the following is a brief description of the current efforts to fight this current (to put it lightly) dysfunctional appraisal environment. And when you are done reading this bit of info, we URGE you to contact Members and Senators to 1: Share any “horror” stories you might know of, 2. Support legislation that the Office of Real Estate Appraisals be given the authority to regulate Appraisal Management Companies and 3. Urge them to support future legislation to make appraisals portable if transferring lenders. As for now, read on.
As a result of a settlement between the New York Attorney General and the Government Sponsored Enterprises – Fannie May and Freddie Mac, the Home Valuation Code of Conduct, better known as the HVCC was created. The HVCC has no force of law and was not enacted by Congress nevertheless, because the GSE’s are dominant in the marketplace, the HVCC was effective in changing the way lenders and appraisers do business. The vision of the HVCC was to separate loan officers and brokers and sales agents from appraisers. Good idea in theory. However, as a direct result, Appraisal Management Companies, which act as intermediaries, exploded onto the scene. Yikes! Compliance with HVCC became mandatory June, 2009.
THE PROBLEM Iies in the AMC’s not being adequately regulated. We are not alone here in Lake Tahoe. Across the country, appraisals are being conducted by “out-of-area” and/or not so sharp appraisers and often, the results do not accurately reflect the true value of a property. When inaccuracies appear in the appraisal reports, there are no easy ways in which to make corrections. Everyone loses – home owners, potential buyers, escrow companies, Realtors, contractors, etc. I just learned of a local story (one of many) in which an appraiser discounted the square footage for an entire indoor pool room which included a seating area, sauna, etc. Just took it away. I am sure you have your own stories to tell.
Furthermore, lenders owning Appraisal Management Companies invite conflicts of interest. Think about it – is an appraiser, especially one from out of the area, more likely to appraise to the underwriting standards of their employer rather than that of the market. Are they so restricted by their employers guidelines that they fear losing their job if they don’t give the true value their experience tells them is fair?
Finally, it is important to take a look at the idea of making appraisals portable. Right now, lenders are requiring the preparation of another appraisal even if an appraisal has already been completed for another lender. We have even seen cases where a consumer, in shopping for the best loan, had to pay for more than one appraisal, even in the case where the same appraiser did the work. Perhaps lenders that own their own AMC’s have a financial incentive to require these additional appraisals. FHA require portability, the HVCC allows it – but lenders refuse it. WHY??
Please contact us if you have any further questions and, go back to our first paragraph and make those calls. It’s easy and incredibly effective. Please pass the word and have a great day.