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Greetings!
If you have been thinking about buying a second home, this might be your best opportunity.
Vacation homes took a battering during the housing bust, with sales of this property type falling approximately 56% on a national level between 2006 and 2010 according to NAR, the National Association of Realtors. 2011 sales increased by 7% to 502,000 sales. Prices however remain soft, with a drop of 19% for vacation homes in 2011 to $121,300 nationally. (not Tahoe/Truckee prices!)
We have seen increased activity with our second home and investment property buyers as well, homes are quickly moving to pending status on the multiple listing service and buyers are finding themselves in multiple offer situations. Cash offers are not uncommon, and High end developments such as Martis Camp are off the charts with home construction indicating that the higher income bracket is on the move.
With record level low mortgage rates, bargain home values and low inventory, the once un-touchable market is now within reach for some. These conditions are creating a sense of urgency and buyers are finding themselves in multiple offer situations. Our local markets in Tahoe-Truckee have seen values down approximately 40% (+/-) since the downturn began. Donna Peeters says that is one of the reasons she wants to step up her search for a second home. She and her husband started thinking about buying a vacation home a couple of years ago, and have seen prices fall as they waited. "It definitely feels like a good time to jump in."
Realtors say that for those who want to keep the home for generations, they are snapping them up even though prices may fall further to take advantage of the ideal interest rates. The bottom for vacation-home prices will be clear only in retrospect, but there are signs the bottom might be forming, says Mark Zandi, chief economist at Moody's Analytics. Some markets in California are already seeing price increases, while hard-hit markets like Phoenix & Scottsdale, Ariz have seen only a slowing in their decline, he says. "From a long-term investment horizon, vacation homes will do very well," Mr. Zandi says, citing low interest rates and expected price appreciation in many markets. The Moody's Analytics forecast overall shows U.S. home prices will drop next year by a scant 0.8%, but the nationwide figure masks sharp geographical divides in popular second-home markets.
Some vacation area market stats as posted in the Wall Street Journal:
- Napa, CA. - drop from peak: 52%, forecast: +9.7% per year
- Santa Barbara, CA. - drop from peak: 51%, forecast: +7.4% per year
- Cape Cod, Mass. - drop from peak: 22%, forecast: +3.6% per year
- Provo/Sundance, UT. - drop from peak: 24%, forecast: +2.5% per year
- Naples, FL. - drop from peak: 55%, forecast: +1.3% per year
Most experts believe the steepest drops already have taken place, and some stronger second home markets have momentum on their side.
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Market Update - May 2012
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Sales of Single Family Residences escalated during May 2012, closing a total of 110 homes/condos in the greater North Lake Tahoe - Truckee area. Looking back during the same time last year these results are stellar as only 79 closed in May, 2011. Of the 110 sales, 37 were distressed (34%) indicating that this type of property is not going away soon. Once again, Tahoe Donner lead the sale race with 19 homes and 1 condo sold. The westshore of Lake Tahoe a close second at 12 homes and 3 condos. This continues to illustrate that it is not the second home market that is lagging. Here are the details:
Statistics from the Tahoe MLS: solds f rom May 1-31, 2012
Tahoe Donner: 19 homes (3 SS), 1 condo
Northstar: 3 homes (1 REO), 4 condos (2 SS)
Glenshire, Cambridge, The Meadows: 8 homes, (2 REO, 1 SS)
Prosser Area: 1 home (SS)
Olympic Heights: 2 homes (2 REO)
Sierra Meadows, Ponderosa Palisades, Winter Creek: 4 homes
Ponderosa Ranchos: 1 home (SS)
Lahontan: 2 homes (1 SS)
The Timbers: 1 condo
Old Greenwood, Schaefer's Mill, Grays: 2 homes, 2 condos
Truckee Proper: 2 homes (1 SS), 1 condo
Donner Lake: 3 homes (1 REO)
Donner Summit: 2 homes
Westshore Lake Tahoe: 12 homes (3 REO, 2 SS), 3 condos
Tahoe City: 4 homes (1 REO, 1 SS), 3 condos
Northshore: 2 homes (1 REO), 3 condos (1 REO)
Kings Beach & Tahoe Vista: 8 homes (2 REO, 2 SS), 2 condos
Squaw Valley and Alpine Meadows: 5 homes, 10 condos (2 REO, 3 SS)
Shared Ownerships (entire area): 6
Mobile Homes (entire area): 2 ( 1 REO)
Condos and Homes in Truckee-North Lake Tahoe over 1M = 12
Highest Priced home or condo sold: $11,000,000 all cash for a Lakefront Home located at 2220 and 2255 Sunnyside Lane at Lake Tahoe. Residence has 6 bedrooms and 5 baths and from the looks of it, the property never hit the market. The numbers were published for statistical purposes.
Lowest Price home or condo sold: Wow, cash talks!! Yes it needed a lot of work but. . . . Originally priced at $172,000, the buyer paid $107,000 cash for a 3/2 fixer located at 11885 Highland in Olympic Heights. This should pencil out for an investor or maybe it is a first time buyer with a rich uncle. Congratulations!!
The list to sell ratio on the median was 98%. Median list price for this period was $399,000 while the median sale price $390,000. The average days on the market were 107.
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| Screaming Hot Deals | |
In this particular spot, we feature the 3 properties in the multiple listing service that we feel are well priced. These are the properties that we wish we had buyers for because we know they are of such value that they will not last long, even in this market. So, for this month, come and get 'em before they are gone. . . .(by the way if when you click on the link you get nothing -- they have already gone under contract).
1) 11852 Brookstone Drive in Tahoe Donner has 4 bedrooms, 3 baths, a family room and a huge garage. The upstairs has vaulted ceilings and a real fireplace, all making for a real mountain home. Priced at $665,000 we think that this is the best deal of the month -- of course it is, it is our listing!! 2) Living in Wintercreek is not for everyone. While it lacks the mountain feel of other areas in Truckee it makes up for it in value and new home appeal. This spot located at 10096 Winter Creek Loop is priced at $379,000 for 3 bedrooms, 2 baths and a garage. We think that this makes a perfect full-time home for a local OR a nice little vacation home for someone who wants to be close to it all -- shopping, the park, restaurants, the golf course -- all real close. 3) Looking for a great buy in the GOLF COURSE? Well, here it is. 10118 Reynold Way is a 3 bedroom, 3 bath spacious home that fronts on the 2nd fairway of the Ponderosa Golf Course. Lots of wood accents an open floor plan and expansive deck make this a great getaway or full time residence. All for the affordable price of $425,000 -- we think that this one is an absolute Gem!!
Be sure to contact us if you would like to take a look at any of these properties!
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| Worst Deals on the Market | |
These are the properties for sale that we feel are the worst priced homes on the market in our multiple listing service. Every month we will choose 2 or 3 properties which, for one reason or another (usually price) are something we alone feel are not going to sell anytime soon. Remember, this newsletter is purely and solely our opinion - there is nothing here that indicates that it is ANYTHING but our opinion.
1) We were treated to a walk down memory lane last week (and it wasn't such a good memory) when we toured this super-dated, shagalicious "cabin" located at 14729 South Shore Drive in Donner Lake. Even though this 3 bedroom cabin obviously had its hey day $489,000 seems to make this a bit overpriced (understatement) for something that needs so much work.
2) Anytime we see 1,088 days on the market you are apt to see it on our worst buy list. If you can't sell it in 1,000 days there is something wrong, and usually it boils down to price. "Great handyman fixer with many possibilities" & two lots with super potential - perhaps, but not at this price! 6627 & 6629 El Dorado St. located on Lake Tahoe's West Shore at Kailua Park, listed for $529,000 is no bargain.
3) 1,060 days on market - need I say more? 209 Trails End in Olympic Valley is calling for a price reduction. This is what happens when a listing comes to the market overpriced. Currently listed for $850,000 but 1,000 days ago it came onto the market listed at $995,000. This 4 bedroom home in desirable Squaw Valley is now old and stale and is very unlikely to realize their price.
Be sure to let us know what you think that any of these properties will sell for by contacting us here and when it does, the entry closest to the actual sale price will win a gift certificate.
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Bank of America could become Bank of Good!
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Yes, the oft maligned Bank of America may soon have a different face. They announced recently that they would pay distressed homeowners whose loan they hold anywhere from $2,500 to $30,000 in what they call "relocation assistance" if they agreed to short sale their homes instead of waiting for the bank to foreclose. The amount each mortgagee can qualify for will be determined on a case by case basis. Some of the factors that will affect the amount will be the value of the home and the amount owed amongst others.
This program was test driven in Florida last year and has apparently been deemed a success. They will be offering it on loan throughout the U.S. but primarily in the states of California, Arizona and Nevada! The short sale must originate by the end of this year (2012) and close by September 26, 2013 in order to qualify. If you have already entered into a short sale you may still qualify.
The bank has also announced last month that it has shortened its decision making time frame down to 20 days.
To be eligible for this financial assistance, you must apply for and receive pre-approval for your short sale price from the bank. If you want to find out if you qualify, you can call the Bank at (877) 459-2852. Or you can ask your real estate professional (that would be us) to help you.
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Kappy, Jennifer, Jody and Christie have a combined 67 years in the Real Estate Profession. We are committed to giving our clients the most up to date Real Estate information and Stellar Service because, We Love Our Work and So Will You! Call us or e-mail us for information about the Tahoe Truckee Real Estate Market. By the way, if you think any of this information might be of interest to anyone you know, feel free to forward this newsletter. We would really appreciate it!
Sincerely,
Kappy Mann, Jennifer Boehm, Jody Scowcroft & Christie Coker
Keller Williams Real Estate
530 563-6165 |
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**INCENTIVE**
DONNER LAKE
HOMEOWNERS! |  | |
Because we believe this is such a great time for our sellers to get ready to put their homes on the market, and because there is such a lack of inventory we are offering an incentive toany
Donner Lake Homeowner who signs a listing agreement with us before our next newsletter is published. With a successful sale,
JK Real Estate will credit $1,000 towards your closing costs for any sale of $100,000 and over.
Rather than keep all the goodies in one place, we plan to move this incentive to YOUR neighborhood next month!!
It is just one more way for us to say
Thank You, we appreciate your business!
Contact us Here or call us at 530 320-0878 or 530 400-0531 today!!
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Propane Users Take Note!
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Now that we are in the easy time of the year, make it a priority to find out if your propane tank and all of its connections are up to snuff. We were recently reminded that a lot of the old tanks in our area have not been serviced and brought up to current safety standards. If you are concerned and think yours might be one that I am referring to, be sure to contact your LPG supplier and/or your local Fire Department to ask what might need to be retrofitted. Take care of this safety issue now BEFORE the heavy winter snow sets in.
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A Special Memorial Day! | |
Here is our most favorite ROAD WARRIOR - SSG Heather Harris, 593RD Medium Transportation Company. She invited us to her Mobilization Ceremony on May 26, 2012 at Wooster High School in Reno. She and her Company have been deployed to Afghanistan in support of Operation Enduring Freedom. This is Jennifer congratulating Heather. Other notables in attendance were The Honorable Brian Sandoval, Governor of Nevada and a representative of the office of Senator Harry Reid. Congratulations Heather -- we know you love this life and we love you for giving so much of yours for our Freedom!! |
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2012 Truckee
Relay for Life |  | |
Once again JK Real Estate will have their team out on the track walking for 24 hours straight, why? - because cancer never sleeps - and for 24 hours neither will we!
For the past 4 years Kappy & Jennifer have been participating in the Cancer Society's largest fundraising event to help raise funds and awareness to this disease that affects so many each and every year.
We invite you to join us by donating to our team or come out to the event and experiene first hand why we do what we do!
July 14 & 15, 2012 Truckee High School Field Click here to make a donation to the JK Real Estate Team |
| J. Dowdy Appraisal Constulting |  | |
Judy Dowdy, owner of J. Dowdy, Appraisal Consulting, has been involved in the real estate business since 1973. For the past 10 years she has worked exclusively as a residential real estate appraiser. Starting her appraisal career in Santa Clara county, she has lived and worked in the Truckee/Lake Tahoe area since 2004. Judy holds two certified appraiser appraiser licenses, CA & NV, and takes assignments in Incline Village, NV and parts of Reno. She also maintains her CA Real Estate Broker license. Her well-rounded real estate knowledge enables her to grasp real estate situations and integrate appraisal methodologies to provide credible analysis. She focuses on working with home-owners, attorneys and CPA's in the valuation of properties for IRS purposes, estate purposes, works with cash buyers, and offers litigation support. Judy believes in customer service and often works late and weekends to accommodate client needs. She is honest and won't compromise integrity or proper appraisal methodologies for speed. She utilizes statistical analysis and graphic displays in conjunction with market analysis to present valid appraisal reports that are easy to comprehend. She has recently completed the curriculum for the Appraisal Institute's residential designation, the S.R.A. and will be the only appraiser in this area to have the honor of achieving this nationally recognized designation. Judy is always available for your appraisal-related questions.
Judy can be reached at (530) 550-9363
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