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

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.

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.

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 3^rd 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

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.

This increase of median and average home prices scored better than the picture presented throughout the overall South Lake Tahoe area. The overall median home price (based upon the average from the preceding twelve months,) appears to have settled during the past six months. These statistics show a median home price of $318,500, down from last year’s $395,000 posted at the end of April.

Following are the ten posted sales for Montgomery Estates during the first trimester of 2010.
2303 Sutter built in 2003 with 2,971 SF sold for $564,500
2341 Cold Creek built in 1974 with 2,703 SF sold for $775,000
1802 Amador built in 1991 with 2,448 SF was a short sale at $400,000
1215 Gold Dust built in 1991 with 2,814 SF sold for $518,000
3100 Jacarillo built in 1982 with 1,400 SF and backing forest sold for $355,000
1157 Early Dawn built in 1973 with 1,120 SF sold for $298,000
1148 Golden Bear built in 1972 with 1,846 SF was a short sale at $350,000.
2384 Cold Creek built in 1977 with 1,832 SF was a bank-owned sale at $351,000.
1701 Pepperwood built in 1969 with 1,064 SF was a bank-owned sale at $214,800.
3025 Lodgepole built in 1996 with 2,578 SF and backing forest sold for $540,000

Let’s all keep our fingers crossed and hope this encouraging news is only the beginning of a stabilizing market. While we are at it, let’s keep those interest rates at record lows and keep those smiles first and foremost.

Significant among the changes were clarifications to timelines.  No longer can a deadline fall on a weekend or a legal holiday.  While these days can be counted within a timeline, the deadline must be be extended beyond the weekend or legal holiday.  For example, if the 17th day of an inspection contingency falls on a Sunday and the following Monday is a holiday as well, the deadline then becomes Tuesday.  Another major change to the contract makes it clear that a deposit check can be electronically transferred into escrow without having to go through the hands of the agent.  Further changes included: the notice to perform, FHA and VA loans, financing, appraisal contingencies, pest inspections, home warranties and contingencies.  There was even language included that addresses whether or not brackets holding up a flat screen tv is considered a fixture or personal property (definitely a sign of the times.)

What do these changes mean to the consumer?  Whether a buyer or seller, the greater the clarification in contract terms, the better the protection and risk management.  More than ever, a local, knowledgeable Realtor is a valuable asset to the real estate transaction.  The next time you find yourself interviewing Realtors, ask them about their continuing education and what they are doing to stay one step ahead of the market trends.  You’re going to be pleasantly surprised.

There were 11 homes that went into ESCROW this past week, up from last week’s 7. The lowest priced new escrow is $164,900 for 3713 Montreal, a 4 bedroom, 1 bath with 1020 square feet.The highest pending sale price is $737,000 for 1984 Osage, a 4 bedroom, 3 bath with 3009 square feet. The median pending sale price is $324,000 with and average time on market of 60 days.

This week there were 9 homes recorded as SOLD, one more than last week’s 9. The lowest sale price was $85,000 for 1223 Bonanza #25, a 2 bedroom, 1 bath condo with 985 square feet. The highest sale price was $520,000 for 756 Lakeview, a 4 bedroom, 2 bath with 1706 square feet. The average time on the market (including the escrow period) was 142 days. The median sale price was $314,000.

There were 7 homes that went into ESCROW this past week, down from last week’s 14. The lowest priced new escrow is $139,900 for 2680 Kubel, a 2 bedroom, 1 bath with 448 square feet. The highest priced new escrow is $1,988,000 for 5 Lighthouse Shores, a 3 bedroom, 2.5 bath with 2996 square feet. The median pending sale price is $399,000 with and average time on market of 102 days.

This week there were 8 homes recorded as SOLD, down from last week’s 14. The lowest sale price was $222,000 for 2319 Sky Meadows, a 3 bedroom, 1.75 bath with 1280 square feet. The highest sale price was $750,000 for 2205 Venice, a 4 bedroom, 2.5 bath with 2467 square feet. The average time on the market (including the escrow period) was 158 days. The median sale price was $610,900.

There were 14 homes that went into ESCROW this week, one less than last week’s 15. The lowest priced new escrow is $112,900 for 3740 Larch, a 1 bedroom, 1 bath with 468 square feet. The highest priced new escrow is $3,275,000 for 3819 Beach Rd., a 4 bedroom, 2 bath with 2286 square feet. The median pending sale price is $309,500 with and average time on market of 107 days.

This week showed 13 homes recorded as SOLD, up from last week’s 8. The lowest sale price was $130,000 for 1176 Margaret, a 4 bedroom, 3 bath with 2184 square feet. The highest sale price was $1,250,000 for 596 Lucerne, a 4 bedroom, 4 bath with 5313 square feet. The average time on the market (including the escrow period) was 115 days. The median sale price was $275,000.