For anyone with an economic interest or investment in the South Lake Tahoe community, this blog is a MUST READ.
Community: ” a feeling of fellowship with others, as a result of sharing common attitudes, interests, and goals.”
South Lake Tahoe has always prided itself on a strong sense of community. Yet, due to the loud voices of a few individuals, discussions to hamper vacation rentals in South Lake Tahoe has once again risen its non-logical head. While we all agree that there can definitely be some noise issues and nuisances related to vacation rentals (not to say that permanent residents and full-time renters are all perfect), our economy depends on keeping an environment servicing vacation-goers. Simply put, today’s families want to rent homes in which they can enjoy a memorable experience with loved ones. They shop, they dine and they recreate all on a temporary basis. If Tahoe chooses to close the doors to vacation rentals, these families will choose to vacation elsewhere.
But let’s face the truth. The majority of Lake Tahoe locals WORK for a living. Restaurant owners, shopkeepers, waitresses, property managers, maintenance workers, construction workers, etc. To service these folks, we need teachers, doctors, lawyers, accountants, dentists, etc. These folks employ daycare workers, beauticians, housekeepers, secretaries, etc. One group depends upon another. This is a community. Eliminate one aspect of this circle and we all collapse.
The much needed transient occupancy taxes generated from vacation rentals is staggering. Yet, to our surprise we overheard one of the opponents of vacation rentals state that we didn’t need to worry about having fewer vacation rentals as they could just increase the fees and taxes on those that remain. Right. And who shoulders these additional fees? Homeowner or the prospective renter? If the costs to prospective renters continue to climb, once again the decision will be made to vacation elsewhere.
Through recent community meetings, discussions have been held to try and come up with ways in which we can address the potential problems yet keep our service-centered community going strong. All along, we were told that vacation rental moratoriums were off the table. Imagine our surprise when we just found out that in fact such a moratorium, which could be detrimental to our clients, private property rights, our businesses and the local economy, will be up for a vote this coming April 7th at 9am. By the way, some with current rental homes might be in favor of a moratorium thinking it may increase their revenue and property values. However, part of this moratorium proposal states that any existing permits will not be transferred with the home. Hence, if one has built value in a strong rental history, this value will have no effect on a future sale. Oh, and check this out. We heard that one council member said he thought it would be a good if home values dropped as more people could buy homes. What people???? They won’t have jobs.
4 of our 5 city council members (one can’t vote because he is an owner of a property management company and it is considered a conflict of interest) will have it in their hands to make a decision that could affect us all.
This is where we need your help. Please make an effort to do one or more of the following:
1. Call/text all city council members (listed below) before 4/7/15 and support the proposals listed after the requested call to actions.
JoAnn Conner – 530-318-6090
Hal Cole – 530-318-1111
Wendy David – 530-208-7871
Austin Sass – 530-307-8867
Tom Davis is not permitted to vote due to a conflict of interest.
2. Send an email to the attention of the City Council to firstname.lastname@example.org or fax to 530.542.7411
3. Be at the City Council meeting at the Airport on 4/7/15 and speak! Even if it has been said 100 times before, we need to be loud and we need to be heard!
The recommended proposals of many business owners (aka people working for a living.)
1. Take Moratorium of new Vacation Rentals off the table.
2. Focus on enforcement. We are against adding more regulation. Enforce what is already on the books and see if the problems resolve. The City has the obligation to enforce its ordinances once they have been adopted and this has not been done.
3. Support increases in permit fees if this helps to cover enforcement costs.
On the other hand, we can sit back and see where the wind blows. Worse case scenario, if a second home owner can’t rent his property on an occasional basis to help defer costs, perhaps he can rent it full time to a large group of tenants in order to meet the needed mortgage. Instead of an average 75 – 100 nights per year, we can have 365. We can all watch our home values drop, jobs vanish, young families leave the area, pay more in taxes . . . Yup, it will be nice and quiet. Correction. It will be quiet. Real quiet. As in ghost town quiet.
In regards to the South Lake Tahoe, the 2015 1st quarter real estate market report is starting off on a pretty strong note. When comparing the statistics reported through the South Lake Tahoe multiple listing services as of March 31, 2015, we found the following:
The median home prices are up approximately 4.8% as compared to last year at the same time. March 31, 2014 reported a median home price of $335,000 and this year, we see a reported median of $351,000. Many will find it interesting to note that the current value is close to those reported in both August 2009 and August 2004.
The average days on the market (the time between the posted list date and the reported sale date has risen approximately 13.2 % from 76 days in 2014 to 86 in 2015. Generally speaking, when we see an increase in the time a home is on the market, we tend to see a correlation to an increase in the number of homes on the market. While not significant, this is the case as well. The number of homes currently on the market is up from 211 last year to 234. This could be due to the good weather. In the past, sellers tended to wait until closer to May when the snow melted. Obviously many felt that there is no sense in waiting this year. Along with the increased inventory, we are seeing a slight increase in the monthly supply of homes. The monthly supply of homes is a based upon the estimated time it would take to sell all homes currently listed if all other facts (prices, interest rates, etc.) were to remain the same. Last year, the monthly supply rate was at 4 months while this year, it is reporting approximately 4.9%. Under 5 indicates a seller’s market,) 5 – 6 indicates a balanced market. Over 7 indicates a buyers’ market.
On another positive note, the Pinnacle Real Estate Group of Lake Tahoe is proud to announce that during the 1st Quarter of 2015, we ranked the following:
#2 in Overall Production
#1 in Average Price of Home Sold
#2 in the Number of Listings Sold
Approximately 15% of Overall Market Share
Not bad for a company with a fraction of the number of agents within the one company that ranked above them in sales. Based on what we are seeing within the office, the 2015 1st quarter real estate market report should see a repeat performance come June 30th.
If you decided to sell your Lake Tahoe home, then chances are you have thought a lot about the selling price. If you are new to doing real estate transactions, there are a few key things to follow when pricing your home that can aid in getting it sold quickly.
Price it right
Most seller’s think their home is great and typically pick a selling price that is based more on how much money they want to make, and not so much on actual market factors. Pricing your home right from the start will determine how long the house sits on the market. A majority of Realtors will tell you that the first two weeks of exposure are the most important. When you come in at a good price, the chances of getting a lot of buyers touring your home is high. If the home sits on the market for too long because it is priced too high, it creates the perception that something is wrong with the home. It also sometimes causes buyers to think you are desperate to get an offer resulting in low ball numbers.
Comparable SALES are key
Want to know how much you should list your home for sale? Look at the “comps”. While you can look at other active listings within the neighborhood that are similar to your home, the best way to figure out asking price is looking at the solds. This will tell you what people are willing to pay for a home like yours. The number of beds, baths, square footage, lot and upgrades are a few good things to look at when comparing your home to your neighbors. A qualified Realtor will be able to provide you comparable activities straight from the MLS and help you pick a good asking price.
Keep it fair while comparing
If your home is a darling 1970’s Lake Tahoe ski chalet with original appliances and shag carpeting, chances are it is not going to be the same price as the brand new construction across the street. Even if you have the same square footage and amount of bed and bath, it isn’t realistic to think that you will get the same amount. This is where paying attention to the comparable Lake Tahoe properties your agent gives you is very important. They are only going to pull homes that are truly similar to yours.
Do a little background check
To get an all inclusive idea of the real estate market on your block, check the listing history. Look at the amount of time a home was on the market, the original listing price to the final sold price. This will be another area where your Lake Tahoe Realtor is going to be of service with a wealth of information.
Consider those home improvements
Consider whether or not those recent upgrades you made warrant a higher listing price. A big high end remodel can definitely be reflected in the home price, just don’t expect to get your full return on investment back. While upgrades help, they don’t always get back as much money as you put in. Every situation is unique, so be sure to chat with your Realtor about this.
Consider supply and demand
Are you selling your home in a buyers marker or a sellers market? If it s a buyers market, your home will have a lot more competition and you may want to ask a bit less in order to attract the right buyer. In a seller’s market there is a smaller inventory with a big buyer demand so you can ask a bit more.
As every home and neighborhood is different, like every seller’s situation, you will want to make sure you discuss with your Realtor what the most attractive selling price is for your home. If you are looking to sell and would like more information, give us a call at 530-577-0389.
It’s that time of year when we try to dust off the old crystal ball and see if there are any indications as to what the upcoming year might have in store for us. While we can never seem to totally rely on that crystal ball’s findings (should have sold our Lake Tahoe house in 2006 despite that ball telling us to hang on), it is always a good idea to at least pay some sort of attention.
Buyers will be most pleased with the just released 2015 California real estate forecast. While the home sales throughout the state are expected to increase slightly, experts are predicting that home pricing gains will be the slowest in four years. According to the California Association of REALTORS®, “the California housing market is expected to return to a traditional buyers’ market with less investors due to more available homes for sale with prices flattening out and sales rising at a modest pace.” As the last couple years have put some buyers home purchasing plans on hold due to the home price increase and strict guidelines for underwriting, this year puts home buyers in a better financial position to make a real estate purchase.
Another plus for buyers looking to purchase more affordable homes is that we are seeing an increase in the variety of programs giving home buyers the ability to buy a home with less than the standard 20% down payment. For example, there are FHA loans that allow buyers to make a down payment as small as 3.5% of the purchase price. It still makes us nervous when we see offers with these low down payments come across our desks yet they sure seem to be working. Mortgage interest rates have been the lowest in years and will most likely rise to around 4.5% which is still historically low. The positive news continues as unemployment is expected to decrease to 5.8% from the previous year which was 6.2%. With all of these factors combined, C.A.R. predicts existing home sales will have an increase of 5.8 % next year as well as reach 402,500 homes sold. The median home price forecast throughout California is expected to increase to $478,700, up 5.2% from 2014. The median home price for homes in the South Lake Tahoe area is currently $336,000. If the same rate of 5.2% increase holds true for the South Shore, we should see a median home price of approximately 354,000 next year at this time.
The Bay area specifically is expected to outperform compared to other regions due to tighter housing supply and strong job market. This is important to note as the majority of Lake Tahoe home buyers come from this area. On a national level, the 2015 real estate forecast varies depending on which economist you listen to. However, there is a general consensus that, like California, home sales will increase.
What a busy month we had in the So. Lake Tahoe real estate market. Historically, November is a rather “sleepy” month with folks gearing up for the holidays instead of buying and selling homes. However, this past November found us all answering more phone calls than usual. When we checked the stats for November, our suspicions were confirmed. November 2014 was definitely a good month for Lake Tahoe buyers and sellers. Not only was it busier, the median home price showed a continued rising trend.
I thought it would be a good idea to compare just the month of November with 2013 and again, found some pretty positive news. In regards to just November of 2014 compared to November 2013, we found: The number of new listings stayed the same with 39 each year while the number of homes on the market is nearly the same with 261 compared to last year’s 263. Furthermore the monthly supply of inventory remained rather stable with 2014’s 4.7 compared to 2013’s 4.5. This is the time it would take to sell all homes currently on the market if all outside factors remained the same. Improvements were seen in the following categories: The time on the market (from list to sale) was down from 136 to 127 , the % of sale to original list price was up from 92.4 to 94.2 and the median home price rose 2.9% from $350,000 t0 $360,000. The only downward trend we saw was in regards to the number of closed sales. In 2014 there were 51 closings while we only saw 43 reported for this year.
When studying the twelve month average (Dec. 1 through Nov. 30), it appears the overall activity is slowing down a bit. The good news was that the statistics showed a 7.6% increase over the same period last year. The median home price stands at $340,000 as compared to last year’s $316,000. The remaining categories reflected trends of a stabilizing market. The days on market was nearly the same with 118 last year and 119 this year. On the other hand, the number of closed sales dropped from 698 to 632, the monthly supply rose from 4.4 to 5.5 (under 5 is a seller’s market while 5-6 is a balanced market), and the number of homes on the market rose from 261 to 305. Knowing of the improvement over the month of November, it will be interesting to see if the overall numbers creep up a bit. Stay tuned.