South Lake Tahoe Foreclosures

I just had a little inspiration from one of my clients  to check out the latest statistics for foreclosure listings in South Lake Tahoe. I had a client that emailed me four bank owned listings that he wanted to see today.  While setting up appointments to view these listings I had learned that one of the properties had just gone into escrow, and the other three already had offers on them! Does my client have great taste or what? I thought that I would look into the latest market activity to see the latest foreclosure trends here in Tahoe. 

There are 479 residential listings on the South Tahoe MLS (both single family homes and condos).  Out of the 479 listings, 62 are bank owned foreclosures. That means that foreclosures account for only 13% of the total current inventory of single family homes listed on the MLS.

Currently 93 of the 479 single family listings are in escrow. Of the 93 properties that are in escrow, 28 are bank owned foreclosures. Although foreclosures only account for 13% of our inventory, they account for 30% of the properties that are in escrow.

In February 2010 there were 103 single family homes that were in escrow on the South Tahoe MLS. Of the 103 properties that were in escrow, 22 were bank owned foreclosures. Foreclosures accounted for only 21% of the properties that were in escrow.  Since last year, the number percentage of foreclosure to non foreclosure escrows has increased by 8%.

The banks are  pricing foreclosures lower than the other properties that are on the market which is why there is so much interest in foreclosure properties.  The average price per square foot of the foreclosures that are listed is $175, the non-foreclosure inventory is at an average of $251 per square foot. The median price of the foreclosures is $214,950 and the median price of the non foreclosures is $315,000.

Although the banks are pricing the foreclosures to sell quickly, most of the properties need some work. Some of the foreclosures are missing appliances, light fixtures, and other hardware. Many of the properties also have damage to the walls, flooring, cabinets, and doors. Some of the banks are now painting, replacing flooring, and replacing missing appliances and light fixtures to make the properties more presentable.

The bottom line is that if you are looking for a good deal on a property in South Lake Tahoe and you are willing to do a bit of work, foreclosures are worth looking into. With all of the recent activity on the foreclosures, you will also need to act quickly when you find a property that you like. The chances are that there will be other buyers interested in the foreclosure as well!

Lake Tahoe Wood Stove Regulations

When purchasing a property in South Lake Tahoe there are some regulations that you are going to want to know about. One of these regulations is the Tahoe Regional Planning Agencies “Wood Heater Retrofit Program”. The TRPA requires that if there is a wood burning stove in a property, it must be certified by the EPA. An EPA certified wood stove has been independently tested by an accredited laboratory to meet a particulate emissions limit of 7.5* grams per hour for noncatalytic wood stoves and 4.1* grams per hour for catalytic wood stoves.  Click on the following link for the List of EPA certified Wood Stoves. 

 If there is a wood stove in the property that is not approved by the EPA then it must be removed prior to the close of escrow. South Y Fireplace  has a wide selection of both TRPA approved wood burning and gas stoves to replace a non-compliant stove. South Y Fireplace has TRPA approved wood stoves starting at $1200.

Existing open burning fireplaces are legal if they are not used as the primary heat source.

Below is the TRPA’s Chapter 91.3B regarding Wood Heaters and Air Quality Control.

 Wood Heaters:

 The sale of wood heaters which do not meet the emission standards of this subsection is prohibited in the Tahoe Region. Wood heaters to be installed, in the Region, either as new or replacement units, shall meet the requirements of this subsection. Coal shall not be used as a fuel source.

(1) Emission Standards: Wood heaters installed in the Region shall meet the following emission standards for total suspended particulates of smoke emissions:

(a) Catalytic wood heaters shall not cause emissions of greater than 5.5 grams per hour. Following July 1, 1990, catalytic wood heaters shall not cause emissions of more than 4.1 grams per hour.

(b) Non-catalytic wood heaters shall not cause emissions of greater than 9.0 grams per hour. Following July 1, 1990, non-catalytic wood heaters shall not cause emissions of more than 7.5 grams per hour.

TRPA Code of Ordinances

CHAPTER 91 – AIR QUALITY CONTROL 91-3

(c) Wood heaters certified to meet the above standards by the U.S. EPA under 40 CFR Part 60 or the Oregon Wood Stove Certification Program, shall be deemed in compliance with the above standards. Pellet fueled wood heaters labeled as exempt from 40 CFR Part 60 shall be deemed in compliance with the above standards.

(2) Limitations: Wood heaters shall be sized appropriately for the space they are designed to serve. Multi-residential projects of five or more units, tourist accommodations, commercial, recreation and public service projects shall be limited to one wood heater per project area.

(3) Wood Heater Retrofit Program: Effective January 1, 1993, prior to any sale, transfer or conveyance of any building, all existing wood heaters in the building, excluding legally existing open fireplaces which are not primary heat sources, shall be in conformance with the emission standards contained in subsection 91.3.B.

(a) Compliance with this section shall be evidenced by a statement of the seller made under penalty of perjury, on a form provided by TRPA, that all existing wood heaters in the building, excluding legally existing open fireplaces which are not primary heat sources, either conform to the emission standards in subsection 91.3.B or have been replaced with conforming units, or that the structure does not contain any existing wood heaters. The statement shall be submitted to TRPA prior to the sale, transfer or conveyance.

(b) A statement of wood heater conformance shall be required for any subsequent sales, transfers or conveyances. The TRPA requires that prior to the sale, transfer, or convayence of a building, the seller must fill out a Wood Heater Statement of Compliance form.

 Wood Heater Statement of Compliance

Wood stoves and fireplaces are of particular concern in Lake Tahoe, due to wintertime inversion layers that prevent the smoke from leaving the Basin. These inversion layers trap smoke close to the ground resulting in elevated pollution levels, poor visibility and even contribute to the decline in lake clarity.

Although the smoke from one wood stove or fireplace may seem minor, added together these stoves and fireplaces discharge tons of dangerous particulate matter, carbon monoxide and a family of cancer-causing chemicals known as polycyclic organic matter to the air each year.

For this reason, the TRPA enacted a “Wood Heater Retrofit Program.” This program is similar to those adopted by agencies in such cities as Mammoth Lakes, Telluride, Aspen, Reno, as well as many others across the United States. The TRPA’s program has been in effect since January 1, 1993, and is designed to reduce the amount of smoke and other harmful emissions from older, less efficient wood stoves and fireplaces. The program requires that all existing wood heaters, excluding legally existing open fireplaces, comply with emission standards prior to any sale, transfer, or conveyance of any building. These standards can be found in subsection 91.3.B of the TRPA Code of Ordinances.

Compliance with the program must be evidenced by a statement from the seller made under penalty of perjury. This statement will be made on a form provided by the TRPA. No other forms will be accepted. This form will require the property owner to state either that: (1) the structure does not contain any existing wood heaters or: (2) that all existing wood heaters in the building, excluding legally existing open fireplaces that are not primary heat sources, conform to the applicable emission standards. The statement shall be submitted to TRPA prior to the sale, transfer, or conveyance of any building and a copy provided to the new owner no later than at close of escrow. This statement is required for all subsequent sales, transfers, or conveyance of the property.

The TRPA’s wood stove retrofit forms can be obtained at our office located on 128 Market Street, Stateline, Nevada. For more information on TRPA’s Wood Heater Retrofit Program, please contact TRPA at (775) 588-4547.

When you are looking at homes in South Tahoe, please make sure to ask if the existing wood stove is approved by the TRPA. You will want to know all of the expenses that will involved with purchasing a property in South Lake Tahoe!

South Tahoe Real Estate Statistics for December 2010

December ended up being a solid month in terms of closings for the South Lake Tahoe Real Estate Market. There were 40 single family homes (not including condos) that were sold on the South Lake Tahoe MLS. Although the average price per square foot dropped below $200 per square foot, both the average and median sales prices were up from November.

South Lake Tahoe MLS Statistics

• There were 40 single family homes in South Tahoe that were sold in December, up from 38 sold homes in November and down from 49 sold homes in December 2009.
• There were 24 distress sales in December. 17 of the sales were bank owned foreclosures and 6 were short sales. 60% of the homes sold were distress sales, up from 53% in November and up from 43% in December 2009.
• The average sales price for the sold  South Tahoe Homes was $404,998, this is up from $362,943 in November and down from $469,281 in December 2009.
• The median sales price was $332,000, up from $291,250 in November and down from $343,000 in December 2009.
• The average price per square foot was $192 which was down from November when it was $212. The price per square foot was also down from December 2009 when it was $220.

There were 5 Tahoe Keys Homes that were sold in December. The houses in the Tahoe Keys that sold had an average price per square foot of $276. The median sales price was $625,000 and the average sales price was $812,500.  Only one of the sold Tahoe Keys homes was a foreclosure, none were short sales.

5 Reasons to Buy a Home in 2011

5 Reasons to Buy a Home in 2011
Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:▪ Mortgage rates will stay low. Even with rates climbing – maybe to as high as 6 percent by 2012 – they are still well below where they have been historically.
▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.
▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.

Source: Investopedia, Michele Lerner (12/24/2010)

Good News For The Real Estate Market

 

In a news article on Realtor.org there was an interesting article about the pending home sales index. Realtor.org is the National Association of Realtors webisite.

Pending home sales rose again in November, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the NATIONAL ASSOCIATION OF REALTORS ® .

The Pending Home Sales Index, a forward-looking indicator, rose 3.5 percent to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. The index is 5.0 percent below a reading of 97.0 in November 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” he said. “But further gains are needed to reach normal levels of sales activity.”

The PHSI in the Northeast increased 1.8 percent to 72.6 in November but is 6.2 percent below November 2009. In the Midwest the index declined 4.2 percent in November to 78.3 and is 7.7 percent below a year ago. Pending home sales in the South slipped 1.8 percent to an index of 91.4 and are 7.2 percent below November 2009. In the West the index jumped 18.2 percent to 123.3 and is 0.4 percent above a year ago.

“If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume,” Yun said. “Credit remains tight, but if lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy.”
The 30-year fixed-rate mortgage is forecast to rise gradually to 5.3 percent around the end of 2011; at the same time, unemployment should drop to 9.2 percent.

For perspective, Yun said that the U.S. has added 27 million people over the past 10 years. “However, the number of jobs is roughly the same as it was in 2000 when existing-home sales totaled 5.2 million, which appears to be a sustainable figure given the current level of employment,” he explained. “All the indicator trends are pointing to a gradual housing recovery,” Yun said. “Home price prospects will vary depending largely upon local job market conditions. The national median home price, however, is expected to remain stable even with a continuing flow of distressed properties coming onto the market, as long as there is a steady demand of financially healthy home buyers.”

Existing-home sales are projected to rise about 8 percent to 5.2 million in 2011 from 4.8 million in 2010, with an additional gain of 4 percent in 2012. The median existing-home price could rise 0.6 percent to $173,700 in 2011 from $172,700 in 2010, which was essentially unchanged from 2009.

“As we gradually work off the excess housing inventory, supply levels will eventually come more in-line with historic averages, and could allow home prices to rise modestly in the range of 2 to 3 percent in 2012,” Yun said.
New-home sales are estimated to rise 24 percent to 392,000 in 2011, but would remain well below historic averages, while housing starts are forecast to rise 21 percent to 716,000.

Yun sees Gross Domestic Product growing 2.5 percent in 2011, and the Consumer Price Index rising 2.3 percent.

Yun discusses the latest PHSI reading in a 5-minute video.

Source: NAR

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