Has California’s Housing Market Hit the Bottom?

Has California’s housing market hit the bottom? According to an article in the Wall Street journal by Jim Carlton, “California’s inventory of unsold, previously owned homes shrank to a five-year low in December, in another sign that the state may be coming out of its worst housing slump in decades.”

The supply of unsold single-family homes dropped to 3.8 months from 5.6 months a year ago and 16.6 months in January 2008, when inventories were at a peak, according to estimates by the California Association of Realtors. The inventory levels are now at their lowest levels since 2005, resulting in frenzied sales with multiple offers in some cities.

The current inventory rate is running well under California’s historical average since the 1980s of about an eight month supply of existing homes on the market. That’s partly because a once huge supply of foreclosures in the state has dwindled. In November, foreclosed properties accounted for 40% of all single family sales, new and used, in California, compared with 58% in January, according to the most recent estimates by Zillow.com a market tracker.

The current inventory of houses for sale in South Lake Tahoe is also down to its lowest level in January since 2007. There are currently 389 active listings on the South Lake Tahoe mls, 83 of the listings are in escrow and 306 of the listings are available. In January 2009 there were 403 active listings and only 36 were in escrow leaving 367 available homes. In January 2008 there were 399 active listings on the South Lake Tahoe mls and only 33 were in escrow leaving 366 available homes. In 2007 there were fewer active homes on the market (368), but still only 37 were in escrow making the inventory of available homes 331, more than the current inventory of 306.

Jim Carlton also points out that prices are also stabilizing. “Although most home prices remain well below their pre-bust highs of three years ago, California’s overall housing markets has shown stabilizing since early last year. The median price of an existing, single family home rose 8.4% from a year ago to $306,820, marking the second consecutive year-over-month jump, according to estimates by the state Realtors‘ association.

The median price of single family homes in South Lake Tahoe was much different than state of California’s median price. The median price of homes in South Lake Tahoe fell 22% in 2009 from 2008. The median sales price dropped from $407,000 to $318,000.  This drop in the median sales price of single family homes can be interpreted in many ways. I do not think that the 22% decrease from 2008 means that property values fell 22%.  There were 137 foreclosures in South Lake Tahoe that sold in 2009, almost double the amount of foreclosures that sold in 2008 (69 sold foreclosures in South Lake Tahoe were sold in 2008). Most of the foreclosures sold in South Lake Tahoe were in need of some kind of work or repairs. Although the increase in foreclosure sales did help bring down the median sales price in South Lake Tahoe, property values did also decline. The amount that property values declined is debatable.

Weather California’s housing market has hit the bottom or not, property values and interest rates are enticingly low. Adding the first time home buyer incentives and the existing home owner incentives from the government there may not be a better time to buy real estate in South Lake Tahoe!

Tahoe Keys Real Estate Review for 2009

Real Estate in the Tahoe Keys was not immune to the decline in property values in 2009. The median sales price of single family homes dropped 17% from $847,500 in 2008 to $700,000 in 2009. One of the leading causes of the decline in the median sales price of the single family homes was the presence of bank owned foreclosures and short sales. There were 5 foreclosures and 7 short sales it the Tahoe Keys that closed escrow in 2009. Short sales and foreclosures accounted for 12 out of 32  (38%) of the sold single family homes in the Tahoe Keys. The number of homes sold in the Tahoe Keys was the same as in 2008, 32.

 

The decline in the sales prices was a great opportunity for home buyers looking for deals in the Tahoe Keys. 484 Carson Ct. is a great example. 484 Carson Ct. was a bank owned foreclosure in the Tahoe Keys that was listed for $792,900. This was a 3 bedroom, 3 bath, 2 car garage, 2136 square foot home built in 1993. This home had multiple offers and sold above asking price at $826,000. This is still an incredible price when you look at what the home last sold for, $1,345,000 on 8/19/05!

2009 Tahoe Keys Real Estate Statistics

• 32 single family homes in the Tahoe Keys sold in 2009
• 5 foreclosures in the Tahoe Keys sold in 2009
• 7 short sales in the Tahoe Keys sold in 2009
• The median sales price was $700,000
• The average sales price was $920,192
• The average price per square Foot was $336
• The median days on the market was 157

The foreclosures in the Tahoe Keys sold for less money and less time on the market than the non-foreclosure properties. The bank owned foreclosures in the Tahoe Keys had an average sales price of $652,270, a median days on the market of 45, and an average price per square foot of $284. Keep in mind that most of the foreclosures in the Tahoe Keys that sold last year needed at least some minor repairs.

2008 Tahoe Keys Real Estate Statistics

• 32 single family homes in the Tahoe Keys sold in 2008
• The median sales price was $847,500
• The average sales price was $900,366
• The average price per square Foot was $388
• The median days on the market was 115

2007 Tahoe Keys Real Estate Statistics

• 37 single family homes in the Tahoe Keys sold in 2007
• The median sales price was $960,000
• The average sales price was $1,155,000
• The average price per square Foot was $476
• The median days on the market was 160

2006 Tahoe Keys Real Estate Statistics

• 35 single family homes in the Tahoe Keys sold in 2006
• The median sales price was $1,000,000
• The average sales price was $1,009,352
• The average price per square Foot was $455
• The median days on the market was 118

2005 Tahoe Keys Real Estate Statistics

• 49 single family homes in the Tahoe Keys sold in 2005
• The median sales price was $1,130,000
• The average sales price was $1,166,367
• The average price per square Foot was $473
• The median days on the market was 80

The median sales price of the Tahoe Keys Condos was down only 14% from 2008, but the number of condos sold was down significantly.There were only 6 Tahoe Keys condos sold in 2009, down from 11 in 2008. The sales volume was down from $4,647,950 in 2008 to $2,118,408 in 2009. Only one of the Tahoe Keys condos sold in 2009 was a bank owned foreclosure.

Tahoe Keys Condo Statistics for 2009

• There were 6 condos in the Tahoe Keys that were sold
• The median sales price was $373,750
• The average sales price was $353,068
• The median days on the market was 156
• The average price per square foot was $279

Tahoe Keys Condo Statistics for 2008

• There were 11 condos in the Tahoe Keys that were sold
• The median sales price was $435,000
• The average sales price was $422,541
• The median days on the market was 97
• The average price per square foot was $408

Tahoe Keys Condo Statistics for 2007

• There were 11 condos in the Tahoe Keys that were sold
• The median sales price was $590,000
• The average sales price was $628,900
• The median days on the market was 113
• The average price per square foot was $477

Tahoe Keys Condo Statistics for 2006

• There were 16 condos in the Tahoe Keys that were sold
• The median sales price was $616,000
• The average sales price was $652,148
• The median days on the market was 100
• The average price per square foot was $486

Tahoe Keys Condo Statistics for 2005

• There were 16 condos in the Tahoe Keys that were sold
• The median sales price was $559,500
• The average sales price was $551,156
• The median days on the market was 71
• The average price per square foot was $450

For more information about Tahoe Keys Real Estate please contact Caifornia and Nevada South Lake Tahoe Real Estate agent Brent Johnson today!

Great Income Property for Sale in South Lake Tahoe

3546 Spruce Offered at $1,100,000

Ten Unit Apartment Building and, 2 Homes on One Parcel!

This property includes a 10 unit apartment building and 2 single family homes on one parcel. The apartments are very spacious and the 2 studios have full kitchens. The two houses have washer and dryer hook-ups and separate water heaters. This property is currently 100% occupied with many long term tenants. Great location near Bijou School and public transportation. All of the apartment units are seperatly metered.

• The 2 bedroom, 2 bath house is rented for $875 a month
• The 2 bedroom, 1 bath house is rented for $860 a month
• Unit #1 is a 2 bedroom, 1 bath unit rented for $750 a month
• Unit #2 is a 2 bedroom, 1 bath unit rented for $750 a month
• Unit #3 is a 1 bedroom, 1 bath unit rented for $640 a month
• Unit #4 is a 1 bedroom, 1 bath unit rented for $570 a month
• Unit #5 is a studio rented for $550 a month
• Unit #6 is a studio rented for $540 a month
• Unit #7 is a 1 bedroom, 1 bath unit rented for $625 a month
• Unit #8 is a 1 bedroom, 1 bath unit rented for $$650 a month
• Unit #9 is a 2 bedroom, 1 bath unit rented for $650 a month
• Unit #10 is a 2 bedroom, 1 bath unit rented for $730 a month
• Laundry income is $100 a month
• Total income is $8,290 a month

Annual Expenses

• Property Insurance $3900
• Property Taxes $12,000
• Refuse $3700
• Sewer and Water $4080
• Gas $3500 (for common water heater)
• Electricity $400
• Repairs and maintenance

Please call South Lake Tahoe real estate agent Brent Johnson for more information on this property.

Investment Property in South Lake Tahoe

Investment Property in South Lake Tahoe Just Listed By Brent and Jill Johnson

1053 Moss Offered at $425,000

This 5 plex is in a great location near stateline, shopping, and the bus routes. The adjacent 5 plex at 3728 Primrose is also for sale by the same owner for $425,000. Both buildings are available to be purchased together for $795,000. There are four 2 bedroom 1 bath units, and one 1 bedroom 1 bath units in this building. There are long term tenants currently occupying 100% of this building. All units are separately metered and the tenants pay for utilities.

• Unit #1 is a 2 bedroom, 1 bath rented for $675
• Unit #2 is a 2 bedroom, 1 bath rented for $675
• Unit #3 is a 1 bedroom, 1 bath rented for $625
• Unit #4 is a 2 bedroom, 1 bath rented for $675
• Unit #5 is a 2 bedroom, 1 bath rented for $750
• Laundry income is $50
• Total monthly income is $3,450

Annual Expenses

• Property insurance $2400
• Property taxes $4700
• Refuse $1620
• Sewer/water $3240
• Gas $1800 (for common water heater)
• Electric $600
• Repairs and Maintenance $1200

If you would like more information on investment properties in South Lake Tahoe, please call South Lake Tahoe Real Estate agent Brent Johnson today!

New Income Property Listing in South Lake Tahoe

3728 Primrose Rd.

5 Plex Near Stateline Offered at $425,000

 

This 5 plex is in a great location close to Stateline, shopping, and bus lines. There are four 2 bedroom 1 bath units and one 1 bedroom 1 bath unit. All units are separately metered and the tenants pay for their own utilities. Currently 100% occupied with long term tenants, this is a great opportunity to own income property in South Lake Tahoe!

• Unit #1 is a 2 bedroom 1 bath unit rented for $700 a month
• Unit #2 is a 2 bedroom 1 bath unit rented for $720 a month
• Unit #3 is a 1 bedroom 1 bath unit rented for $650 a month
• Unit #4 is a 2 bedroom 1 bath unit rented for $700 a month
• Unit #5 is a 2 bedroom 1 bath unit rented for $750 a month
• Laundry income is $75 a month
• Total income is $3595 a month

Annual Expenses

• Property Insurance $2400
• Property Taxes $4700
• Refuse $1620
• Sewer/water $3240
• Gas $1800 (for common water heater)
• Electric $600
• Repairs/maintenance $1200

The adjacent 5 plex at 1053 Moss is also for sale for $425,000. If both properties are purchased, the price will be discounted to $795,000.

For more information about this property or any other property on the South Lake Tahoe mls, please call South Lake Tahoe Real Estate agent Brent Johnson today!

Next Page »