What’s the current condition of the Lake Tahoe real estate market?  This question is asked of real estate agents every day.  Here’s the short answer:  if you’re looking to buy there are some outstanding values in the market right now.  Smart sellers and their agents are pricing their properties correctly and there are some very special properties for sale.  By special I mean homes with views, large lots, and in great neighborhoods.

Take a look at these very revealing Lake Tahoe real estate numbers:

·         2010 YTD sales :  239 vs. 165 same time frame in 2009

·         2010 number of houses for sale:  449 vs. 474 in 2009, 600 for sale in 2006

If you’re selling your property now in the Lake Tahoe area, many people are seeing the current market as a window of opportunity to buy real estate in one of the most beautiful places in the world.  So people are definitely buying.   Again, if your property is priced correctly, it will sell and you’ll most likely get near or maybe even above what you’re asking for it.

The mistake many people make when pricing their property for sale is that they price it way above what the current market will bear and in today’s world, with very educated buyers and all the tools available to them, this strategy just doesn’t work.  In fact, houses that are over-priced tend to sit on the market much longer and actually sell for less than if it was priced correctly from the beginning.

Since there are fewer properties on the market right now than usual, it does take a little more digging and patience to find the home you’re looking for in Lake Tahoe.  The keys to finding your jewel in the pines is to plan and decide what you’re looking for, research, and to ultimately take action.

I attended the National Association of Realtors annual convention and do so most every year to participate and take note of the trends effecting the economy and the housing market so that we can be on the cutting edge of our industry. I have had the pleasure serving the NAR on its Resort and Second Home Committee for the past several years and will be serving as the Vice Chair and Chair (god willing) during the next two years.

Here's the latest from the economists and prognosticators:

Transition and the Economy-

The news to report is mixed, much was relayed on the transition of government, everyone agreed we needed change and we got change.

There was a great deal of discussion on the economy naturally and on the GSEs (Gov't sponsored enterprises) now transitioning to GOEs (Gov't owned Enterprise) as the Bail out, stimulus bill are being rolled out.

Help is on the way in the credit sector, whether you like it or not (the plan), there will be relief from debt, consolidations, modifications, buy downs and general affordable credit made available to the those who need it the most, our home owners that are under water!

Regulations will be put in place to monitor the bail out process and the financial institutions that will be receiving the funds to distribute to"qualified" home owners.

Defaults, delinquent loans and Foreclosures are still on the increase as a result of the sub prime and variable interest rates loan that have become unaffordable for many, often times equaling more than the homes are worth said Chairman Lockhart of the FHFA Agency.

The interesting dynamic at play however, is that in many areas in the country, the buyers including first home buyers and investors, are coming into the market place in substantial numbers, as a result of the attractive declining prices that foreclosures, short sales and distressed sale have brought to the real estate market.

We have a future-Slightly hazy...

Dr Yun, NARs Chief Economist, forecasts that the "recessionary like" economy will see some relief by the 3rd and 4th qtrs of 2009 fueled by the influx of funds from the monetary markets not only to the housing sector but also the manufacturing, energy and green job development.

On the longer term forecast he was optimistic that the housing market would see increased demand based on the growing population and immigrations and the shortage of new development, supply and demand. Other factors he noted included the international and overall demand for our "recent attractively priced" housing and the opportunity for a secure and decent "roi", pressure to diversify ones portfolio (that which left of it) including commercial and industrial property.

Opportunity knocks and the Local Market-

70 million baby boomers, first time homebuyers, internationals and investors are still poised to buy an affordable home, lifestyle and investment property but have been cautiously waiting on the opportunity and the market.

Real Estate in comparison to other investment platforms such as the stock market, has fared far better, historically has continued to draw good appreciation and most of all...can be enjoyed!

Our resort realestate market has survived the turbulent ride better than much of California and many other markets that overbuilt propelled by the insatiable demand of the investment market.

The Lake Tahoe basin has some built in supply factors, inherent with the slow growth environmental policies which helped insulate the area to some extent.

That said however the market has seen a decline in median home price of approx 20% over the past 2.5 years driven by the foreclosures, short sales and motivated sellers.

The good news is that inventory is down (as compared to the past year) 10% approx and pending a sales are up by over 20%.

As long as the interest rates and the flow of money holds, I'm forecasting a continued increase in pending sales and closed escrows, even in this beleaguered economy.

Real Estate represents a sound investment at this time.

I'll send you Dr Yun's report as soon as it is out, however I've attached the International home buyer's profile for your review as it is a dynamic at play in our market.

Happy Thanksgiving to you and yours.

Best Wishes,

Deb Howard
Deb Howard & Company
Lake Tahoe's Real Estate Resource
866-542-2912 toll free
530-542-8657 fax
deb@realtordeb.com
www.realtordeb.com
3599 Lake Tahoe Blvd. Ste A
South Lake Tahoe, CA 96150

The Lake Tahoe market has shown signs of of improvements in terms of units pending and sold over the past 6 months year over year.

That's good news and I'm suggesting this is a trend as apposed to an anomily. However the dark lining on this bit of trend news is that the price point has been declining.. at about 1% per month over the past 18 months (see South Tahoe Association of Realtors stats).

While we're seeing the increase in activity, the market trends are showing the attraction (from buyers) to be driven by and to the "best deals" which, in our most recent market, looks like foreclosures, short sales and distressed.

Time to buy!

Originally Posted by Deb Howard
on 6/9/2008 11:16:31 AM

While Tahoe has been a popular destination of International visitors and investors historically, it is becoming ever more so based on a few things that I have observed
in addition to my notes on the NAR DC visits;

1) globalization and immediate access to information expanding the exposure of our resort market to the international market,
2) access to resorts (you can get here from there)
3) Desirability of 4 seasons resort,
4) As said earlier - Values! safe investment, enjoyment, weather and good exchange rates are driving a lot of new interest.

The move up market of existing foreign investors is another market we are experiencing.
Antidotally I have a couple who are from Singapore who are looking to upgrade from a vacation income property they already own here in Tahoe to another larger grander property to retire to 6 month out of the year. (check on guest/foreign homeowner visitor visas, another good topic to investigate). Water, views, floor plan to accommodate entertaining their friends from around the world and located in a safe or gated community are their top criteria. They also bring with them a whole host of friends and family that will join them in investing in Tahoe.
More to follow.

Deb Howard