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!

Newer Homes in South Lake Tahoe Selling now Selling at $226 Per Square Foot!

Newer homes in South Lake Tahoe are now selling for an average of $226 per square foot. That is just about the price that contractors were charging to build custom homes back in 2005 and 2006, not including the cost of land, permits, and plans!

The recent sale of two of my newer home listings prompted me to look further into newer home prices compared to previous years.

I just sold a custom home built in 2006 for $565,000. 840 Boulder Mountain was a 2671 square foot 4 bedroom, 2.5 bath, 2 car garage home that sold for $211.53 a square foot. Located in the Angora Fire area of North Upper Truckee, this home has great views, but was a tough sale due to the fire damage to the surrounding landscape.

 

 

1140 Sioux is a listing that I was just able to get into escrow. Sioux is one of the nicest quality newer houses for sale in South Lake Tahoe. With 4 bedrooms, 3 full bath rooms, and a 2 car garage, this 2828 square foot home is gorgeous. There is a National Forest lot on each side and across the street, giving this home a very private setting. The only thing holding this home back was that it was located in the Meyers area where there is not a lot of newer homes. With a list price of $579,000, this house had a list price per square foot of only $205!

 

So far this year there have been 14 houses sold in South Lake Tahoe that that are less than 4 years old. According to the South Lake Tahoe mls, the average price per square foot for the sold newer homes was $226. The Median sales price was $575,000 and the median square footage was 2,646. It seems like when a new or newer large house was reduced to under $600,000, it would sell quickly.

When you look at the newer houses that sold in 2006, the numbers are quite different. In 2006 the average price per square foot for the sold newer homes was $328! The median sales price was $800,000 and the median square footage of the sold homes was 2,584. The average price per square foot has declined over 31% and the median sales price has declined 28% on newer homes since 2006.

As of today, there are 68 newer homes for sale in South Lake Tahoe that are less than 4 years old. The average list price per square foot is $299, and the median list price is $793,500. It is the newer homes that are priced less than the competition, or have had major price reductions are the homes that are now selling. Location has also been very important. Newer homes in more reputable areas, with views, or near open land are also selling much more quickly than the average locations.

Once the current inventory of newer houses for sale in South Lake Tahoe decreases, we may see a need for spec home builders to get back into the market. Right now, with the large selection of newer homes on the market, it is till too tough for builders to compete with the current prices.

Foreclosures have not really affected the new home market as much as they have other areas of the market. There has only been two newer bank owned foreclosures in South Lake Tahoe that have been for sale on the mls. 1818 Jack Bell Ct. was a 4 bedroom, 2622 square foot foreclosure that was built in 2006 which sold for $500,000. 581 Gardner is a 4 bedroom, 4028 square foot bank owned foreclosure that is currently in escrow. The asking price for 581 Gardner was $629,900.

For a list of the new houses for sale in South Lake Tahoe, please call Brent and Jill Johnson today!

Bank Owned Properties in South Lake Tahoe

Another bank owned foreclosure has been listed on the South Lake Tahoe mls. 1181 Nottaway has just been listed for $207,000. This house is 936 square feet and has a listing price per square foot of $221.15. The average listing price per square foot for the foreclosures in South Lake Tahoe that are currently on the market is $194 per square foot. This new foreclosure listing brings the total amount of foreclosures on the South Lake Tahoe mls to 25 and 21 of them are in escrow.

 

Great opportunity to earn some sweat equity with this bank owned foreclosure listing in the Tahoe Paradise area of South Lake Tahoe. Located on a flat and sunny 6534 square foot lot in a quiet neighborhood, this would make a great first home or a vacation home. This house is 936 square feet and has 2 bedrooms, 1 bath, and a 1 car garage.

There are other houses for sale in South Lake Tahoe other than foreclosures that are also good deals. If you would like a list of homes for sale in South Lake Tahoe that I think are priced well in a certain price range, please call Brent Johnson today!

South Lake Tahoe Real Estate in the Y Area

The “Y Area” in South Lake Tahoe has some of the lowest priced homes for sale in South Lake Tahoe. Houses in the Y Area start at under $200,000 for a small 2 bedroom home, fixer, or a foreclosure. Most of the homes in the Y Area range from $200,000 to $400,000. The houses priced from $200,000 to $400,000 are most likely 2 or 3 bedroom homes in re-modled or original condition. There also have been a few larger and newer homes that have sold over $700,000.

The Y Area is conveniently located where HWY 50 and HWY 89 intersect in South Lake Tahoe. This is a great location for either locals who want to be in town, or for second home owners who would like to be close to most of South Shores amenities. Camp Richardson is only about 5 minutes north on HWY 89, and between the Y and Camp Richardson are South Shores best beaches.

Most of the homes in the Y Area are on flat 5,000 square foot lots and have neighboring homes on all sides of the property. Due to all of the trees in the Y Area, mountain views are rare in this area.

Here are the statistics for the single family home sales in the Y Area beginning in 2005.

In 2005 there were 35 single family homes that sold in the Y Area.

• The average price per square foot was $351
• The median list price was $359,000
• The median selling price was $350,000
• The median square footage was 1,080
• The median days on the market was 91

In 2006 there were 16 single family homes that sold in the Y Area

• The average price per square foot was $305
• The median list price was $391,000
• The median sales price was $371,500
• The median square footage was 1,175
• The median days on the market was 114

in 2007 there were 17 single family homes that sold in the Y Area

• The average price per square foot was $327
• The median list price was $419,000
• The median selling price was $380,000
• The median square footage was 1,283
• The median days on the market was 128

In 2008 there were 15 single family homes that sold in the Y Area

• The average price per square foot was $253 (23% less than in 2007)
• The median list price was $327,950 (22% less than in 2007)
• The median sales price was $317,000 (17% less than in 2007)
• The median square footage was 1,280
• The median days on the market was 161

Out of the 15 homes that sold in 2008, 3 were bank owned foreclosures. Foreclosure listings in South Lake Tahoe became more frequent in 2008, and are now accounting for almost half of the sales on the South Lake Tahoe mls.

2133 Helen was a 3 bedroom, 2 bathroom, 1 car garage foreclosure that needed major repairs. This 1432 square foot foreclosure sold for $175,000.

973 Tata was a 2 bedroom, 1.5 bath 1200 square foot bank owned foreclosure that sold for $220,000

 

1881 Delta was a 3 bedroom, 1 bath, 1,596 square foot bank owned foreclosure that was located on the meadow.

Here are some photos of other South Lake Tahoe real estate listings that have recently sold in the Y Area:

For affordable Real Estate in South Lake Tahoe, the Y Area is an area that may have the house that you are looking for. Weather you are looking for a starter home or a vacation home in South Lake Tahoe, make sure to take a look in the Y Area.

If you have further questions about South Lake Tahoe real estate you can either add a comment to this blog post or contact Brent and Jill Johnson today! Jill and I are available to assist you with your questions regarding foreclosure listings in South Lake Tahoe, listings on the South Lake Tahoe mls, or anything regarding South Lake Tahoe Real Estate.

South Lake Tahoe MLS Listing-840 Boulder Mountain

  Most buyers for South Lake Tahoe Real Estate are looking for exceptional deals on houses. My custom house listing on 840 Boulder Mountain has just been reduced another $100,000 and is now one of those deals! Take a look at this custom Tahoe home, and compare it with the other real estate listings in South Lake Tahoe!                                        

                                                 840 Boulder Mountain Drive JUST SOLD!!!

$100,000 Price Reduction!

             

Now Offered at $599,000!

Virtual Tour

More Pictures

• Great Mountain Views                                        
• Log Accents
• Granite Slab Counter tops
• Stainless Steel Appliances
• Custom Travertine Throughout
• Much More!

 

Great Mountain views from this “Almost New” Tahoe Mountain Home! Log accents, custom woodwork, and rustic light fixtures give this custom home the true Tahoe feel! This is a 4 bedroom, 2.5 bath, 2 car garage 2671 square foot home. The sellers are motivated and have this special home priced to sell!

 

 

This listing is provided by South Lake Tahoe Realtors Brent and Jill Johnson. If you would like more information about this house or any houses for sale in South Lake Tahoe, the South Lake Tahoe MLS, or any Real Estate in South Lake Tahoe, contact us today!

 

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