Lake Tahoe Real Estate Statistics
July 8, 2011
LAKE TAHOE, Nev. (July 6, 2011) – Median home prices in Lake Tahoe stayed relatively flat throughout Lake Tahoe, with substantial increases in East Shore prices, according to a midyear report released by Lake Tahoe-based Chase International.
The median price of a single-family home in Lake Tahoe is up two percent to $540,375 and the average price is up nine percent to $962,705. Those numbers were boosted by a 20 percent increase in median home price on the East Shore ($625,500) and a 67 percent increase in average price ($1,565,642). The report compares home prices and sales from January 1 through June 30, 2011 to the same time period of 2010. Overall sales volume in Lake Tahoe was down nine percent and units sold dipped four percent.
“We had some strong sales and increases the first quarter but saw a decline in the second quarter of this year,” said Sue Lowe, corporate vice president for Chase International. “I think we are still bouncing around the bottom of the market.”
Tahoe City saw a three percent increase in median home price ($475,000) and a 15 percent drop in average price ($681,634), caused mostly by a seven percent boost in sales of homes over a million and a 27 percent drop in homes sold for less than a million.
Average and median prices were down in both South Shore (ten and 12 percent, respectively) and Incline Village (11 and five percent). Sales of million-dollar homes were down in all areas of Lake Tahoe, except the East Shore, which experienced a 71 percent jump in sales of more $1 million.
Condo sales around the lake were up nine (volume) and 13 (units) percent, with Incline Village seeing the biggest jump in units selling for more than $500,000. Tahoe City experienced a 136 percent increase in units sold for less than $500,000.
The average price of a home in Truckee is down 13 percent to $534,313 and the median is down 14 percent to $433,000. Sales volume was down nine percent but units sold was up four percent, reflecting a nine percent increase in homes sold for less than a million and a 33 percent decline in homes sold for more than a million.
Headquartered in Lake Tahoe, Nevada since 1986, with eight offices in the region (Zephyr Cove, Glenbrook, Incline Village, Tahoe City, Squaw Valley, Truckee, South Lake Tahoe and Reno) and one in London, England, Chase International and its exclusive affiliations handles a large share of the country’s property. A recognized leader in the world of real estate, Chase International continues to grow, having added 65 Realtors® to their ranks in the past twelve months.
Lake Tahoe Real Estate Statistics for June 2011
July 7, 2011
June ended up being a very busy month of closings for the South Lake Tahoe Real Estate market. There were 49 single family homes that were reported as sold on the South Lake Tahoe MLS which was up from 35 homes in May. Although the June median sales price increased
from May, it was down 8.7% from what it was in June 2010.
The number of distress sales (short sales and foreclosures) that were sold in June was up from how many were sold in May, but the percentage of distress sales went down. In May, 22 of the 35 (63%) homes that were sold were distress sales. In June, 27 of the 49 (55%) homes that were sold were distress sales. Foreclosures accounted for 16 of the distress sales and short sales accounted for the other 11 distress sales that were sold in South Lake Tahoe.
June Lake Tahoe Real Estate Statistics
- The median sales price for the homes in South Lake Tahoe that were sold in June was $298,250 (up from $285,000 in May, but down from $326,250 in June 2010).
- The average sales price for the homes in South Lake Tahoe that were sold in June was $394,809 (up from $316,777 in May).
- The average price per square foot was $191 which was up from $183 in May.
- The average days on the market was 194 and the median days on the market was 138.
- There were 16 bank owned foreclosures in South Lake Tahoe that were sold in June.
- There were 11 short sales in South Lake Tahoe that were sold in June.
The short sales in South Lake Tahoe that were sold in June has an average price per square foot of $187 while the foreclosures that were sold had an average price per square foot of $156.
The short sales had an average sales price of $365,091 and the foreclosures had an average sales price of $263,791.
The short sales had a median sales price of $232,000 and the foreclosures had an average sales price of $203,000.
The short sales had an average days on the market of 262 and the foreclosures had an average days on the market of only 82.
The 7 foreclosures in South Lake Tahoe that were sold within the first 60 days of being listed sold for an average of 102% of list price (2% over asking price). 61-90 days was 99.31% of the list price. 91-120 days was 96.08% of the list price. 120+ days on the market was 94.41% of the list price.
There were 8 condos in South Lake Tahoe that were reported as sold on the South Lake Tahoe MLS. There were 3 condos that were sold in the Tahoe Keys area. One of the condos that was sold was a short sale, and one of the condos was a foreclosure.
There were 4 multi-family properties that were sold in June. Three of the sold multi-family units were duplexes and one was a 6 unit apartment building that sold for $400,000. One of the duplexes that was sold was a short sale and one of the duplexes was a bank owned foreclosure.
There was only one lot sold in June and it was my listing on Panorama. This was a large 14,000 square foot lot that sold for $78,000.
Currently on the South Lake Tahoe MLS there are 474 single family homes in the City and County areas that are listed for sale. 81 of those listings are active pending.
Lake Tahoe Nevada or Lake Tahoe California?
December 22, 2010
Lake Tahoe is a very unique Lake which is located on the state line that divides California and Nevada. There are advantages and disadvantages to owning real estate on either side of the state line. Linda Granger of Chase International wrote a great article explaining these differences.
California or Nevada?
As a real estate professional I am frequently asked, “Is it true that if I am going to buy a second home at Lake Tahoe, I should buy in Nevada as opposed to California? Is it really less expensive?” Of course, this question makes sense as my market area, Lake Tahoe, is both in Nevada and California. Whenever I have attempted my intensive research consisting mainly of asking this question of other agents, or friends at the gym or over a glass of wine, I usually come up feeling as ‘gray’ about the answer as I did going into the research project. It appears that everyone has ‘heard’ this or that, but no one is really sure. It is for this reason that I have decided to actually research the subject through experts, including conversations with CPA’s and attorneys that practice on both the Nevada and California sides of the lake.
Now, if you speak with a real estate agent on the Nevada side of Lake Tahoe, I guarantee that they will be able to sell you on all the financial benefits of purchasing in their marketplace as well as the fantastic amenities and the fact that the Nevada side of the lake gets less snow and more sun…they may even drop a few names of big dogs that own homes in their world. But if you speak with a real estate agent on the California side of Lake Tahoe, they will probably be able to sell you on the fact that owners on the California side of the lake have access to charming old-Tahoe towns and neighborhoods on both the North and West shores, have easy access to some of the greatest ski resorts in the country, and oh…did i mention those California girls?
Regardless, you are in the right place. Yes, I am a California girl and for me, once a Californian, always a Californian. However, the great news is that I also have real estate partners on the Nevada side of Lake Tahoe, so hopefully the information below will not be slanted and will really help you decide between California and Nevada.
Let’s start with a quick summary, and then if you would like more details on each state, click on these links for more summarized information about California Tax Benefits & Nevada Tax Benefits.
- Property taxes in NV are county specific.
- Washoe County assesses property taxes every 5 years, but currently they are several years behind in that process
- There is no personal income tax in the state of Nevada. This can be a good thing, especially for retirees from CA who can bring their retirement incomes with them if they become residents. This is the main difference. It’s like getting a 10% raise for living across the state line. Residency is considered to be a minimum of 183 days a year. Some Californians/Nevadans fudge on this and maintain homes in both states but claim NV as their primary residence and vote/register vehicles/bank etc. in NV.
- Generally, if you buy a $1,000,000 house in CA, your tax bill will be about $1000/month, while in Douglas County the property tax on a $1,000,000 house is +/- $3500 per year. Assuming an 8% annual increase in Douglas County, it will take 9 years for the Douglas County tax to equal the CA tax, and property taxes are usually just one of several considerations in the equation. The most important thing, of course, is for the client to decide what the most important factors are in his personal equation .
- In California, property tax is reassessed upon transfer at approximately 1.25% of sales price.
- In Douglas County, NV, including the Carson Valley and Tahoe’s East Shore, taxes tend to be significantly lower than in Washoe County, NV, which includes Incline Village and Reno. In recent years the Washoe County rates have become very controversial as they’ve approached those of California.
- Douglas County property tax bills cannot be calculated from the “Total Assessed Value” posted on the Assessor’s website. Among the subjective considerations are view, age of the property and Special Taxes. Sewer is the biggest component of Special Taxes – that’s generally where a property is hooked up directly to county sewer rather than being part of a General Improvement District. Those Special Taxes are billed as part of the prop tax bill. GID members pay for water, sewer and snow removal separately at roughly $135/month. The newer the improvements the higher the property tax bill. View is also a subjective element – in the case of two seemingly identical homes, the one with the better view usually has higher taxes.
- Several years ago the Nevada legislature capped annual increases at 3% for primary residence. I called the Douglas County Treasurer and confirmed that the increase for second homes and rentals (non owner occupied properties) can be up to 8% in the county.
- As a resident, there is no state income tax if you earn your money in Nevada or if you have passive income, even if it comes from California. If you are a resident of Nevada and are employed in California you will be taxed by California.
- My experience has shown me that if it is a primary home as opposed to a second home or investment home, then the tax advantages can be more substantial. If it is a second home and you already live in California than the difference is minimized UNLESS you plan to retire in that home. If this is the case, then in an attempt to protect your assets Nevada may be a better option.
- Another point to consider is that the median price of homes in Nevada is greater than that in California if you compare Incline Village (2009 median price was $915,000) to Tahoe City ($530,000) and Truckee ($538,000). So…while it may be less expensive on an annual basis, there is a cost to that…price upon entering the market.
Businesses in California vs. Nevada
A San Diego Business Law Firm created this article comparing owning a business in California or Nevada.
A limited liability company, better known as “LLC”, is a flexible business entity. It gives you the asset protection characteristics of a corporation, but with less formality. From a tax perspective, the LLC is taxed most often as a partnership. This avoids the double taxation issues that arise with a traditional corporation.
After deciding to form an LLC, the next issue is picking the state in which to do the formation. For people living in California, there is a temptation to form the entity in Nevada. Why? Well, it usually comes down to tax issues. California taxes everything including a LLC. Nevada, on the other hand, provides a much better tax situation.
So, when we ask about the merits of a California versus Nevada LLC, the answer is Nevada is the best jurisdiction to pick, right? It might appear so at first glance, but there are problems with this approach. You will often read that you can form a business entity in any state you desire. This is true, but you probably should not.
Let’s assume I live in Tahoe City, CA and have a business idea. I decide to go ahead and form a Nevada LLC. Once created, I launch my business in Tahoe City, CA. I open an office in my home. I meet with clients in the office. I take calls in Tahoe City, CA. I receive orders in Tahoe City, CA. Basically, all the business activities are taking place in Tahoe City, CA.
This is a common scenario, but problematic. Since the day-to-day activities of my business are taking place in Tahoe City, CA, California state agencies are going to view me as a California business. This means I will have to register with the Secretary of State as a foreign LLC since my entity is based in Nevada. I will also have to pay California state taxes and other fees.
The end result of all of this is that I end up paying all the fees I would have by originally forming the LLC in California. On top of that, I will also be paying all the Nevada fees. Given this scenario, the benefits of using a Nevada LLC are lost and I actually end up in a worse situation.
Most books and websites discussing the creation of business entities are painfully inadequate. Make sure you understand the complete picture before choosing where to originate your LLC or any other business entity.
CBS News put on a great video about the differences between California & Nevada when it comes to running a business. Click here to view video.
Lake Tahoe Real Estate Statistics for June 2010
July 9, 2010
June was a great month for Real Estate in South Lake Tahoe. There were 53 single family homes that closed 
escrow in June, more than any other month so far this year. The increase in the number of home sales was partially driven by the expiration of the first time home buyer tax credit which expired on June 30. Another factor was that there were a lot of short sales that had been in escrow for a long period of time that ended up closing in June. Almost half of the homes sold last month were distress sales. There were 14 bank owned foreclosures and 12 short sales that were sold. That is a substantial increase from May when 9 foreclosures and 7 short sales were sold.
South Lake Tahoe Real Estate Statistics for June 2010
- There were 53 single family homes in South Lake Tahoe that sold in June, up from 42 sales in May.
- 26 of the sold homes were distress sales (14 foreclosures and 12 short sales).
- The median sales price of the sold homes was $319,000, down from $322,000 in May.
- The average sales price of the sold homes was $416,292, down from $462,367 in May. The average sales price in May drops down to $387,667 if the $3,525,000 lakefront Tahoe Keys home is removed from the average.
- The average days on the market was 179 and the median days on the market was 114.
- The average price per square foot was $209, down from $216 in May.
Prices for single family homes actually went up in June 2010 compared to June 2009. The median sales price was up 6% from $300,000 in 2009. The average sales price was up was up 17% from $346,317 in 2009. And the number of single family home sales was up 23% from 41 in 2009. The number of distress sales was up in 2010 as well. There were 26 distress sales in June 2010 compared to 16 in June 2009.
Distress sales continue to bring down the average and median sale prices of the homes sold in Tahoe. The foreclosures in South Lake Tahoe that sold in June had a very low average price per square foot of $157. The median sales price of the foreclosures was only $198,000, the average sales price was $255,107. The low prices of the foreclosures are reflective of the condition of the properties. Many of the foreclosures sold in June were in need of repairs. The distress sales will continue to drive down the median and average sales prices as long as they are around.
Currently there are 512 single family homes listed on the South Lake Tahoe MLS, 70 of those homes are in escrow. There are 33 bank owned foreclosures for sale in South Lake Tahoe, 9 are in escrow. There are 77 short sales listed on the MLS and 35 of them are in escrow.
Chase International Dominates the Lake Tahoe Real Estate Market
January 9, 2010
Chase International continues to dominate the real estate market in South Lake Tahoe in volume and the number of closed escrows. Below is a letter from our office manager Larry Finkel with the year end Lake Tahoe closing statistics.
