After a slow start this year, home sales in the Tahoe Keys are finally starting to heat up!

Last night I was bass fishing in the Tahoe Keys near the entrance to Lake Tahoe. It was another incredible Tahoe summer evining. I couldn’t help but overhear some vacation renters outside on a deck talking about the offer that they had just submitted on a house in the Tahoe Keys. After staying a week in the vacation rental home on the water, they decided that they had to take advantage of the market and to buy in the Keys.

Winter and spring were scary for Tahoe Keys sellers. It took until May 15th for the first Tahoe Keys sale and then May 20th for the second.  Once summer began, the the Keys buyers began to snatch up houses from motivated sellers and a couple of banks (REO’s). According to the South Lake Tahoe MLS, there have been 17 closed escrows in the Tahoe Keys this year, and 15 of them have been in the last couple of months.

The average sale price in the Tahoe Keys has been $898,395 this year.

                                                      Median sale price     $845,000

                                                      Minimum sale price $410,000

                                                      Maximum sale price $1,900,000

In the Tahoe Keys there are currently seven houses in escrow on the South Lake Tahoe MLS:

1997 Garmish- list price $799,000

1882 Cascade Ct.- list price $995,000

524 Christie Dr.- list price $1,088,000

1961 Kokanee Way -list price $1,495,000

484 Carson Ct. -list price $1,100,000

417 Christie Dr.- list price $849,000

One of the reasons that houses have started selling in the Tahoe Keys is that sellers are starting to price their homes to sell. You can now buy a nice 2000 sq. foot home with lake access in the $700,000’s!

The only down side to the Tahoe Keys is that you will have to watch me bass fishing in your back yard once a week!

Short sales are becoming more and more common across the country. A short sale occurs when a lender agrees to accept less than what is owed on the property as payment in full. Short sales have become common due to the decrease in home values, and the popularity of low and no down loans during the recent real estate boom.

Here is an example of an active short sale on the  South Lake Tahoe MLS:

1835 Mohican

This home was listed previously for $1,199,000. This is a five bedroom, three and one half bath, three car garage, 3300 square foot home.

This home was recently re-listed for $769,000 as a short sale!

One thing to know about making an offer on a short sale is that your offer may take weeks or even months to get a response from the bank. If the seller and the listing agent have done their job, and submitted a complete short sale package to the lender prior to listing the home, this time period should be shortened. If the seller and the listing agent have not contacted the bank and have not submitted a short sale package, I would be wary of wasting your time with an offer.

A short sale can be a beneficial situation for every one involved. The seller will be getting out from under a payment that he or she can no longer afford, the buyer may be purchasing the home below the current value, and the bank will not have to foreclose on the owner.

The down side to a short sale is that the seller will be damaging their credit score and the bank will be loosing money on the loan discount. Another possibility with short sales is that after a long wait for lender approval, your offer may be declined, and you will have wasted valuable time in this buyers market.

On Tuesday August 19th, the South Lake Tahoe City Council approved several rule changes for vacation rentals.

Starting September 19th, vacation renters will not be allowed to use the house for commercial activities, including wedding receptions and large parties.

Restrictions on occupancy and overnight parking will now be from 10 p.m. to 6 a.m., changed from midnight-to-6 a.m..

Vacation rental homes will also be required to post signs on the homes that state the maximum number of occupants and vehicles allowed at any one time. The phone number and e-mail address of the police will be required to be on the sign for potential complaints.

Permit fees for vacation rental homes will be increased to cover the cost of a new community-service officer who will enforce the new rules and respond to complaints.

Regulating vacation rentals in South Lake Tahoe is a much better solution to correct concerns than the previous idea of a vacation rental moratorium. 

I have quite a few clients looking for homes in Lake Tahoe that  plan to supplement some of the ownership costs by renting the house out as a vacation rental. If vacation renting was not an option, they may not be able to own a house in beautiful Lake Tahoe!

Every day clients ask me if I think that the real estate market  will keep going down. To answer this question, I look at the local market statistics, listen to Real Estate analysts, and give my personal opinion. Prices for Real Estate in South Lake Tahoe may or may not go down any more, but Real Estate mogul  Donald Trump says “Now is the Time to Buy!”.

Last week “The Donald” was on Good Morning America, and gave his opinion on the Real Estate market.

“If you want to buy a house there’s probably never been a better time,” Trump said.  “It’s a tough market. It’s a horrible market,” he said. But “this is the absolute time to buy. It’s not the time to sell.”

According to Trump, the golden real estate rule of location, location, location still applies.

I can’t think of a better location than Lake Tahoe! Lake Tahoe is a resort destination area with year round activities that draws people of all ages and interests.

Donald Trump has made millions on real estate in his career, and is definitely a reliable source for real estate advice!

I personally do not know if we are at the “bottom” of the market, but I know we are close. We are close enough to the bottom that I am putting my money where my mouth is. I just put a seven unit apartment building in South Lake Tahoe in escrow for myself. I feel that now is the time to buy, and that is what I am doing!

JUST SOLD!!!

1476 Glenwood Way, South Lake Tahoe

3 bedroom, 2 bath, 2 car garage

1406 square foot single story ranch style home

Sales Price $375,000

 I recently had the pleasure of helping first time home buyer Thia Mullikin purchase her first house. First time buyers are finding some great deals on Real Estate in South Lake Tahoe. The house that Thia was able to buy was twice the size of the house that she almost bought in 2006. Thia had been looking at homes in South Lake Tahoe for almost three years, and decided that now is the time to buy. Thia also said that it was well worth the wait!!!

Here is what Thia had to say about her home buying experience with my wife Jill and I:

“As a first time home buyer I was very inexperienced in the details, follow up and continual negotiations involved in buying a home.  Further, in a place like Lake Tahoewhere there are many Realtors to choose from, I fortunately had the luck and pleasure of working with Brent and Jill Johnson.  This team not only was available at my convenience to view listings, but also truthful and ethical in helping me make a decision to buy my first home. The process was seamless, the negotiations and follow up prompt, and the personal relations delightful. As a Tahoe local I would recommend the Johnsons to any of my friends or family who need help buying or selling a home.”

-Cynthia Mullikin MPAS, PA-C                                                                                                                                                   

   South Lake Tahoe, CA

JUST SOLD!

649 Seneca Street

1680 Square foot 3 bedroom, 2 bath, 2 car garage fixer upper

Built in 1969

Sold for $330,000 after 36 days on the market

I had the great pleasure of working with the homeowner Geoff Beasley during this transaction. Here is what Geoff had to say about  Chase International South Tahoe Realty and myself:

Working with Chase International - and Brent Johnson in particular - has been a real pleasure.  Brent truly lives by his motto, “We’re here to make all of your transactions as smooth and easy as possible.”  Brent is eager, helpful, and willing to do whatever is needed.  I have no hesitation recommending him to anyone looking to buy or sell property in the Tahoe area.  When we sell our next house, we won’t consider anyone but Brent.

Geoff Beasley

July was a smokey month in Lake Tahoe due to the wildfires that were burning throughout California. South Lake Tahoe Real Estate was not exactly “smoking”, but the activity showed  improvements over previous months.

According to the South Lake Tahoe MLS, there were 39 single family homes that closed escrow in July, up from 29 in June.

Out of the 39 closed escrows, seven houses were bank owned foreclosures, and one house was a short sale.

The average sales price was $479,392 and the median sales price was $395,000.

The lowest priced home was a foreclosure at 2133 Helen Ave.,which was a fixer-upper which sold for $175,000. The highest priced sold home was 1890 Meadow Vale Dr. which was a newer home that sold for $1,150,000.

There were 33 new single family escrows reported on the MLS that were opened in July. Out of the 33 new escrows, five are foreclosures and six are short sales.

The average home price for the new escrows is $549,309, and the median home price is $452,000.

The least expensive home is 3404 Freel Street for $174,900, and the most expensive new escrow in July is 550 Lucerne Way in the Tahoe Keys.

Condos in South Lake Tahoe did not show much improvement in July. There were three condos were sold, and four condos that went into escrow. 1390 Ski Run unit #6 was the only condo that was reported as a short sale.

Activity on lots in South Lake Tahoe was as slow as condos with only three sold and one new escrow. Lots with allocations in the county have lost the value of their allocations. Allocations used to increase the value of the lot up to $90,0000. Now the wait for a El Dorado County Building Allocation can be less than one year!

Buyers for Real Estate in South Lake Tahoe are continuing to target foreclosures, short sales, and under priced homes. This just magnifies the importance of sellers pricing their homes correctly to get them sold in this buyers market.

                               Here is a Current list of Active Foreclosures on the South Lake Tahoe MLS.

864 San Fransisco Ave. $425,000

2638 Lipan St. $479,900                                                    

1980 Mojave St. $244,900

733 Zuni St. $340,000

7872 Tamarack Ave. $189,900

2734 Knox Ave. $250,000

3705 Montreal Rd. $360,000

3514 Blackwood Rd. $452,000

3475 S. Upper Truckee Rd. $349,900 in escrow

2737 Springwood Dr. $385,000 in escrow

2508 Cold Creek Trail $429,900 in escrow

2477 Lupine Trail $462,500 in escrow

2682 William Ave. $199,000 in escrow

2587 Kubel Ave. $249,900 in escrow

1027 Stockton Ave. $254,900 in escrow

2645 Knox Ave. $294,750 in escrow

2255 Inverness Dr., Tahoe Keys $399,000 in escrow

2244 Inverness Dr., Tahoe Keys $409,000 in escrow

2133 Helen Ave. $190,000 in escrow

Short sales are becoming more and more common on the South Lake Tahoe MLS. A short sale is when a homeowner owes more on their home than the home is worth, but their bank agrees to accept less than what is owed as “payment in full” to avoid the foreclosure process.

A lender may be willing to cut their losses with a short sale to avoid the costly and time-intensive foreclosure process.  Most lenders must to have five to six times the value of their foreclosure properties on their books. This further reduces the amount of money the lender can loan out and earn interest on. Lenders would rather have that money working for them!

In order for a homeowner to qualify for a short sale they must prove that they are having a legitimate hardship. The lender will want to see a letter stating what the  hardship is. The homeowner must have little or no equity in the home, usually less than 8%. Some lenders will require the homeowner to be behind on payments. Other items lenders require are the last two months bank statements on all accounts, pay check stubs, authorization to release information, and the last two years tax returns.

When purchasing a short sale in South Lake Tahoe there are some important things to remember. Once your offer is accepted by the seller, the bank could take weeks to respond. This can be very frustrating for buyers, not knowing if they will be getting the house. In most cases, short sales will be “as is” sales. The sellers probably will not have enough money to make any repairs that the buyers may ask for, and the lenders usually will not do any work. In many cases, the  hassles can be worth it financially!

It is important to be knowledgeable about the short sale process so that when you write an offer on one you know what to expect. There are some great short sales and foreclosures on the South Lake Tahoe MLS. Take a look at my website www.JohnsonsTahoeRealEstate.com/blog to search the South Lake Tahoe MLS for some of these deals!

                     Here is a list of rates as of July 10th provided by Alliance Mortgage Group, Inc.

          Conforming 30 Year                            (up to $417,000)                       Conforming 15 Year

              6.25% -0 points                                                                                          5.75% - 0 points

              6.125%-.5 points                                                                                        5.625%- .5 points

              6.000%- 1 point                                                                                         5.500%- 1 point

           Agency Jumbo 30 year                    (up to $580,000)                       Agency Jumbo 15year

                6.375% -0 points                                                                                    6.000% -0 points

                6.250% -.5 points                                                                                   5.875% -.5 points

                6.125%- 1 point                                                                                      5.750%- 1 point

             Jumbo 30 year                               (up to $1,500,000)                         Jumbo 15 year

              8.000%- 0 points                                                                                     7.250%- 0 points

              7.875%- .5 points                                                                                      7.125%- .5 points

              7.750%- 1 point                                                                                         7.ooo%- 1 point

                                                                          5/1 Interest Only

                                                               fixed for 5, then LIBOR + 2.25%

                    Conforming                                                                                    Jumbo

                6.ooo%- 0 points                                                                         6.250%- 1 point

                5.875%- .5 point                                                                         5.750%- 1.5 points

                5.75%- 1 point                                                                            5.500%- 2.5 points 

If you are interested in purchasing real estate in South Lake Tahoe we have some of the best Mortgage Brokers around!

Associated Mortgage (530) 544-5309

Alliance Mortgage (530) 318-0730

Bank of America (530) 543-6900