South Lake Tahoe Update

As of December 1st, 27.5% of the single family homes sold over the last 90 days were bank owned properties or short sales.  At the beginning of the year distressed sales accounted for over 50% of our local sales.   Although our short sale inventory has remained stable over the last 90 days, REO-bank owned property listings have declined 60% over the same time period.

 

This is especially good news for those looking to sell their residential home or investment property.  A decrease in distressed sales has stabilized market values with multiple offers coming back if your home is priced correctly. There are currently only 151 available homes on the market - a 38% decline from this time last year.  Reduced inventory can often return a higher sales price and shorter time on market.

 

As of November 30th the single family residential median sold price per the South Tahoe Association of Realtors had declined 11% from $275,000 a year ago to our current $245,000.   This is a another month over month uptick in our area median sales price.  We hit bottom in August 2012 at $234,000.

 

Statistics for some of our area neighborhoods:  Gardner Mountain area has increased 4.4% in value from a year ago.   Montgomery Estates is down 6.3% while Y Area values are up 28.9% from a year ago.   For those living in Tahoe Keys, market values have declined 1.1%.

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Comments

  • There are many factors to consider that skew these stats. All is not what it appears to be. Of course smallinventory can raise demand/prices but in the grand scheme of things its a drop in the bucket. Media hype always kills me---'Prices are up! Sales are up!'  Well if we had been selling 1000 units a month, then dropped to 1 unit a month and suddenly sell 2 units HOORAY sales are up 100%!

     

    Just why are REOS down so much? Thats a complicated scene. Legal problems from in-lender improper procedure, the MERS situation, banks changing from regular foreclosure to the JUDICIAL process as a workaround many states atty generals giving owners extra time for more attempts for loan mods, etc.  Now here is a BIG BIG possibe factor. God word in the street is that huge money instituitions are now looking to buy thousands of REo to keep as rental properties due to increasing rents. If the house is now worth 100,000 but had been worth 200,000 and the loan is 120,000, chances are with todays high rents that they will get more return from the rent than the original payment AND thewy are not worried about needing the remainder of their money back because or sickining government is floating billions to them. Also, they get to hold the properties until times are better and they have appreciated. What a win-win for the banks and investors! Mark my words, we wont be smashed with shadow inventory to drop values asmany (including me) previously thought.  Now,will this increase fair market prices? The insane, ignorant gov officials who are eating away at the mortgage industry are taking care of that. Obtaining a loan is now so hard and will be harder. A much lower percentage of the population can qualify. Real estate was a totally false dream bubble anyway from the dangerous  stated income lending. The American Dream really was a disguised American Nightmare. Remember that these record low interest rates will not last.   Buyers will thin down. All people in the real estate field will be thinned out just as mortgage people were. Its all academic anyway, as the Mayans calendar may show the end ofthe world in a few days.

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