Newer Homes in South Lake Tahoe Selling now Selling at $226 Per Square Foot!
June 7, 2009
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!
840 Boulder Mountain
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
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!
South Lake Tahoe Real Estate Review for May 2009
June 2, 2009
For the third month in a row, the number of new escrows for single family homes on the South Lake Tahoe mls has increased. In May there were 56 single family houses in South Lake Tahoe that went into escrow, this was up from 43 in April, and up from 38 in March. The total number of houses in South Lake Tahoe that 
Distress sales are still accounting for about half of our current escrows. Out of the 96 houses that are in escrow, 19 are bank owned foreclosures, and 31 are short sales. Out of the 56 new May escrows, 11 are bank owned foreclosures, and 14 are short sales.
The listing prices of the houses that went into escrow in May were also up from the escrows in April. Both the average list price per square foot and median list price of the new escrows was up slightly.
Statistics for the Pending May Single Family Homes in South Lake Tahoe for May
- There were 56 new single family houses in South Lake Tahoe that went into escrow in May (up from 43 in April)
- The median list price for the homes was $369,700 (up 5% from $349,900 in April)
- The average list price per square foot was $253 (up 3% from $246 in April)
- The median days on the market was 75 (down from 129 in April)
- 11 of the new escrows were bank owned foreclosures (13 foreclosure escrows in April)
- 14 of the new escrows were short sales (15 new short sale escrows in April)
The foreclosure listings in South Lake Tahoe that went into escrow in May were priced much lower than the non-foreclosure listings. The average price per square foot for the foreclosures in South Lake Tahoe was only $177. The median list price for the foreclosure listings was $295,000 and the average list price was $296,405. Many of the foreclosure listings had multiple offers on them and went into escrow within just a few days of being listed. There are now currently 19 foreclosures in South Lake Tahoe that are in escrow.
The new short sales in South Lake Tahoe that went into escrow had a much higher list price per square foot at $249. The median list price for the short sale listings was $479,000 and the average list price was $481,600. The short sales also took longer to sell, the average days on the market was 146.
The number of houses in South Lake Tahoe that actually sold in May was 26, up one home from April. There should be a lot more closed escrows in June from the pending sales from April and May. Escrows are now taking from 45 to 60+ days due to the fact that lenders are now taking longer to push loans through. The average sales price, median sales price, and average price per square foot were all up in May compared to 
April.
Statistics for the Sold Single Family Homes in South Lake Tahoe for May
- There were 26 houses in South Lake Tahoe that sold in May
- 11 of the sold houses were bank owned foreclosures
- The average sales price was $360,169 (up 13% from April when it was $334,696)
- The median sales price was $315,000 (up 8% from April when it was $291,000)
- The average sales price per square foot was $222 (up 5% from April when it was $210)
- The average days on the market was 125
- None of the 26 houses sold in May were reported as short sales!
With 31 short sales in South Lake Tahoe currently in escrow, and none that closed escrow in May, short sales are still a bit of a challenge to say the least.
The 11 foreclosures in South Lake Tahoe that sold in May had an average sales price of $187, a median sales price of $240,000, and an average sales price of $261,682. The median days on the market for the sold foreclosures was 69, including the escrow period.
The South Lake Tahoe real estate market is definitely showing signs that the bottom is either near or has passed. The amount of pending sales continues to rise and the median and average sales price has increased over the past month.
Make sure to keep reading Brent and Jills South Lake Tahoe real estate blog for the latest statistics for real estate in South Lake Tahoe!
The True Costs of Owning Real Estate in South Lake Tahoe
May 4, 2009
With all of the first time home buyers and investors diving into the South Lake Tahoe real estate market, I figured that I would write a blog post about all of the costs that should be taken into consideration before purchasing a home. In this blog post I will go over the costs associated with purchasing and owning a home in South Lake Tahoe. With the most active recent price range being under $300,000, I based my costs on a 
single family home with a sales price of $300,000.
When owning a home in South Lake Tahoe, you need to be aware that there are more expenses than just your mortgage payment and taxes. Other expenses include the South Lake Tahoe Public Utility District (water and sewer), the South Tahoe Refuse (garbage collection), Taxes, Insurance, Maintenance, possible snow removal and landscaping.
The South Lake Tahoe Public Utility District charges $231.01 per quarter for water and sewer fees in the City of South Lake Tahoe. Water use is not metered at this time and is charged as a flat rate.
The South Tahoe Refuse charges 65.28 a quarter for trash pick-up. It is mandatory in South Lake Tahoe to have trash pick-up even for vacation homes and vacant homes.
The real estate taxes are based on the purchase price and are about 1.1%
Hazard insurance is a must, and is a requirement if there is going to be a loan on the home.
It is a good idea to have a snow removal company clear your driveway in the winter for second homes. The snow can really pile up and get as hard as concrete if it is not cleared often. Second homeowners will also want to consider hiring a landscaper to keep their yard looking nice during the summer.
Homes in South Lake Tahoe are exposed to a harsh environment and will need regular maintenance and up-keep. Wood houses will need to be stained every 3 to 5 years and paint grade houses should be painted every 5 to 10 years. Furnaces and water heaters should be serviced annually and chimneys should be cleaned
to prevent chimney fires. All other normal maintenance costs should also be taken into consideration.
Here is a breakdown of the costs associated with purchasing a $300,000 home in South Lake Tahoe. The title and escrow fees were provided by Placer Title. I used a conventional 30 year 80% loan of $240,000 at 5% interest amortized over a 30 year period.
Buyers Estimated Net Sheet
123 Main Street
Charges Credits
Sales price $300,000
New Loan $240,000
CLTA Standard Title Policy, 1/2 Buyer $486.50
ALTA Loan Extended Coverage Policy $441.50
Recording Fee $75.
Escrow Fee, 1/2 Buyer $485.
Outside Notary Fee if Applicable $125
Hazard Insurance $800
Termite Report $200
Home Inspection $300
______________________________________________________________________________________
******SubTotals******
Due From Buyer $302,912.50 $240,000
$62,912.50
Totals $302,912.50 $302,912.50
Including the hazard insurance, there would be $3,112.50 in closing costs to purchase the home. There would also be prorations for the taxes, refuse, and water and sewer on the closing statement.
The monthly costs associated with owning the house in South Lake Tahoe are as follows:
Mortgage payment on $240,000 at 5% $1288.37
Taxes based on a $300,000 sales price $275.
Hazard Insurance $66.67 ($800/12 months)
Water and Sewer $77. ($231.01/ 3 months)
Refuse $21.76 ($65.28/ 3 months)
_____________________________________________________________________________________
Total Monthly Cost $1,728.80
I did not include any snow removal or landscaping in the monthly cost because they are optional. I also did not include any maintenance costs because they are variable, but should also be considered. One last consideration would be any costs associated with the loan such as loan origination fees, appraisals, ext..
It is a great time to purchase real estate in South Lake Tahoe, but first you should make sure that it is in your budget. Buyers who are planning on purchasing a home and renting it out will most likely not be able to cover all of the costs associated with owning the house. There will probably need to be some money invested by the owner in order to cover all of the holding costs. Purchasing a home in South Lake Tahoe may still be a great investment if you purchase a home with the current low values and low interest rates. Once the market rebounds, owning a house in South Lake Tahoe could be an incredible investment!
Please call Brent and Jill Johnson for more information regarding South Lake Tahoe real estate today!
South Lake Tahoe Real Estate Review for April 2009
May 1, 2009
For the second month in a row the South Lake Tahoe real estate market has shown signs of improvement regarding
The statistics for the new escrows are as follows:
Pending April Single Family Homes in South Lake Tahoe
- There were 43 new single family homes that went into escrow in April, up from 38 in March.
- The median list price for the homes was $349,900 (up 15% from $297,900 in March).
- The average price per square foot was $246
- The median days on the market was 129
- 15 of the new escrows were short sales
- 13 of the new escrows were bank owned foreclosures
There seems to be a bit of a frenzy over the bank owned foreclosure listings in South Lake Tahoe. There are 25 foreclosures on the South Lake Tahoe mls, and only 9 of them are still available. Yesterday there was a new foreclosure listing located at 1782 Southern Pines, there are already 4 offers in on this property and threats of more coming in.
If you compare the bank owned foreclosures that went into escrow to the non-foreclosure escrows there are some noticeable differences. The average square footage of the foreclosures and the non-foreclosures was very close, 1676 square feet for the foreclosures and 1619 for the non-foreclosures. The average price per square foot for the foreclosures was $206 per square foot, which was 22% less than than the non-foreclosures which had an average price per square foot of $263. The median list price for the bank owned foreclosures was $299,000, which was 18% less than than the non-foreclosure homes which had a median list price of $364,000.
The short sale homes that went into escrow were similar to the non-short sale or non-foreclosure homes. The average price per square foot for the short sales was $246, only 6% less than the non-distress sale escrows. The median list price for the short sale homes was $379,900, actually 4% higher than the non-distress sale escrows.
The amount of homes that were reported as sold on the South Lake Tahoe mls in April was 25, which was the same number of homes that sold in March. Although the number of homes that sold was the same, there was a dramatic drop in the median and average old prices. A large part of the change in the price can be attributed to the fact that the median square footage of the sold homes was much smaller in April. The median size sold home was 2,012 in March and was 1,565 in April.
Sold Houses in South Lake Tahoe in April
- There were 25 homes in South Lake Tahoe that sold in April
- 7 of the sold homes were bank owned foreclosures
- 2 of the sold homes were short sales
- The median sales price was $291,000 (25% less than $388,000 in March)
- The average sales price was $334,696 (27% less than $457,160 in March)
- The average price per square foot for the sold homes was $210 (5% less than $222 in March)
- The median days on the market was 111
The 7 foreclosures in South Lake Tahoe had an average price per square foot of $197, a median sales price of $270,000, an average sales price of $247,914, and a median days on the market of 86. Although there are only 9 single family foreclosures that are still available on the South Lake Tahoe mls, there should be more coming onto the market. There are still a fair amount of notices of default being filed, and this should more foreclosure listings in the future. The key to purchasing one of the new foreclosure listings will be to have your pre-approval letter ready and to keep following my South Lake Tahoe real estate blog post on foreclosure listings in South Lake Tahoe.
For more information regarding South Lake Tahoe real estate, contact Brent and Jill Johnson today!
Meyers
April 6, 2009
For South Lake Tahoe real estate buyers looking for a quiet county neighborhood, Meyers is the place to look. Meyers is located about five minutes west of the “Y” on Highway 50. The South Lake Tahoe mls defines the Meyers area as beginning at the Lake Tahoe Golf Course on the north side of Highway 50, and extending to where the South Upper Truckee River and Highway 50 intersect.
Houses in the Meyers area are very diverse, like other areas in South Lake Tahoe. Some Meyers homes back the Lake Tahoe Golf Course, the Upper Truckee River, or National Forest. The homes in these locations have some of the best mountain views of any homes in South Lake Tahoe. The bigger and newer homes in the nicer parts of Meyers are priced up to a million dollars.
Most of the homes in the Meyers area are situated on 6,000 square foot lots and neighbor other lots or homes. There have been foreclosures and small cabin/ fixer type homes that have sold under $200,000. The majority of the houses in Meyers are priced from $250,000 to $450,000. Although the houses located along the edges of Meyers that back open land are private, the middle of Meyers definitely feels like a residential neighborhood.
Outdoor enthusiasts looking at real estate in South Lake Tahoe will enjoy the Meyers area. The Lake Tahoe Golf Course and Tahoe Paradise Golf course are with-in walking distance to most of the homes in the Meyers area. Sierra-At-Tahoe and Kirkwood are the ski resorts that most Meyers residents ski and snowboard at regularly. Meyers also has great hiking and mountain biking trails that easily accessible.
The Meyers Environmental Magnet School is also located in the Meyers area. This elementry school is a great feature of the Meyers area. The Magnet school is considered one of the best schools in Tahoe. (My daughters attend this school!)
