Tahoe Real Estate Update...

Because of our ideal real estate office location in the casino core, we attract many prospective buyers and sellers for both timeshares and vacation home properties. It's true that most people that walk in our office are seeking a good deal on a timeshare. We also see visitors interested in general real estate properties. We have two departments at Paradise Real Estate and Timeshare Resale; the timeshare resale division and the real estate division. Just like the timeshare resale business, we focus on nice vacation properties at very deep discounts. We are currently working with pre-foreclosures, short sales, and bank owned properties. You would not believe the prices on some of these properties! We are not talking about depressed areas either. If you would like to own a Lake Tahoe home or invest in a vacation rental property, please call me at 530-318-1945 or email me at dan@paradise-realestate.com . I would also be glad to email you a list of our current short sale and bank owned properties.
The recent government stimulus package allows first time home buyers up to an $8000 tax credit. In addition lower interest rates have created more activity in the Tahoe real estate market. We have seen an increase in buyers taking advantage of incredible home ownership opportunities and finally fulfilling their life-long dream to own a piece of Lake Tahoe. I encourage you to contact me directly so I can consult with you on the many tremendous opportunities in this RARE real estate market. If you would like to receive automatic email notifications when vacation homes first get listed please go to the link at Paradise Real Estate and fill out your criteria. This will not include all short sales. I will provide that separately when it becomes available to my real estate division via banks. Soon my website will include a link to valuable foreclosure information.
Thanks again from "Your Real Estate Consultant for Life"

Median Sales Price in South Lake Tahoe Continues to Decline

The median sales price in March 2008 for a single-family residential home in South Lake Tahoe, California dropped to $425,000. That is 10.5 percent less than one year ago when the median sales price was $475,000. Home prices have been on a steady decline since peaking at $489,000 in March-April 2006. The March 2008 price of $425,000 is identical to the median sales price in June 2005. “Local home prices are still under pressure as more foreclosures and short sales become available. I expect home prices will continue to decline over the next 12 months. It is truly a buyers market with some outstanding bargains available,” said Dan Spano, President of Paradise Real Estate.

There is some good news for sellers: the number of available homes on the market declined to 361. This is the lowest number of available homes since March 31, 2007 when 359 homes active listings were available for sale. There are currently 40 homes in escrow. This represents 10 percent of the 401 active single-family residential listings in MLS. By comparison, on July 31, 2007 there were 597 active single-family homes on MLS with 40 homes in escrow for a net total of 557 properties available for sale. “The decreasing supply will help stabilize pricing through the busy summer months,” Spano continued. “Smart shoppers will benefit from attractive home pricing and very low mortgage interest rates. I expect to see more buyers emerge as the weather warms up.”

South Lake Tahoe Home Sales and Prices Down in 2007

2007 was a difficult year for real estate across the entire country and South Lake Tahoe, California was no exception. Sales dollar volume was down 11 percent and the median price decreased 5.5 percent to $449,900. The downward trend has continued so far this year with the median sales price for February 2008 dropping to $435,750. However, there are indications that the South Lake Tahoe real estate market is starting to turn around.

Currently, there are 426 active single-family residential listings on the South Lake Tahoe MLS with 52 homes in escrow. Last year at this time, there were 352 active single-family residential listings with only 25 properties in escrow. “A good number of listings have gone into escrow within the last 30 days,” said Dan Spano, President and CEO of Paradise Real Estate. “Buyers are realizing that home prices have corrected and this is a good entry point. Mortgage rates are also very attractive and that has helped spur home sales.”

Overall, the entire Lake Tahoe real estate market still posted some impressive numbers for 2007. The median home price was up 5 percent to $843,500 and the average price increased 12 percent to $1,386,219. The overall dollar volume of homes sold was down only five percent with 14 percent less units sold compared to 2006.

The town of Incline Village on the North Shore of Lake Tahoe led the way with the dollar volume of homes sold up 19 percent over last year. The median price for a home in Incline Village increased 6 percent to $1,140,000 while the average price for a home was up 5 percent to $1,629,980. The numbers were also impressive on Nevada's East Shore of Lake Tahoe. Total sales dollar volume increased 4 percent and the median price jumped 14 percent to $1,045,000.

The data was not as good on the West Shore of Lake Tahoe. Total dollar sales volume in Tahoe City declined by 27 percent. The median price decreased by 2 percent to $749,000 but the average price actually increased by 3 percent to $1,156,483.

“The market for high-end homes in the multi-million dollar price range was very strong in 2007,” continued Spano. “Sales of lower end homes were more like a normal year.”

Mortgage Rates Still Historically Very Low!

The latest results from Freddie Mac's Primary Mortgage Market Survey showed 30-year fixed-rate mortgages averaged 6.11 percent with an average .5 point for the week ending December 13, 2007. This reversed an eight-week trend where the rates held steady or declined. Last week, the average 30-year fixed rate mortgage averaged 5.96 percent, a new low for 2007. The highest average for 2007 was 6.73 percent on July 19. Last year at this time, the 30-year fixed-rate mortgage was nearly identical with a 6.12 percent average.

“November's employment report showed stronger job growth, no change in the unemployment rate and a jump in wages, suggesting to some market participants that the probability of an upcoming recession might be lower than originally thought,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This led to a rise in interest rates for U.S. Treasury securities this week and mortgage rates followed.” Nothaft believes that the recent quarter-point rate cut by the Fed will likely diminish upward pressure on mortgage rates over the next few months.

“Mortgages are still available despite news to the contrary,” said Dan Spano, President of Paradise Real Estate in South Lake Tahoe. “The rates are very attractive and this is an excellent occasion to invest in Lake Tahoe real estate. Home prices have declined and there are some outstanding buys available from motivated sellers. Now is the time to purchase your dream home at Lake Tahoe at the same price or even less than several years ago!”

Subprime Mortgage Woes Have Far-Reaching Effects

The recent fallout in the subprime mortgage market has permanently changed the landscape for homebuyers. New Century, a subprime lender that was once the second largest in the industry, filed for bankruptcy in April. The company joined dozens of other subprime lenders to crash and burn in the housing market downturn. They were all victims of rapidly rising default rates.

So what does all this mean for the homebuyer? Basically it means it is quite a bit more difficult to get a mortgage loan now than the past few years. Popular forms of 100 percent financing have just about disappeared completely. Companies that were previously anxious to lend money are now very cautious. “First-time homebuyers will be affected because now they need to come up with a down payment,” said Dan Spano, President of Paradise Real Estate in Lake Tahoe. “This will prevent many first-timers from purchasing a home. Higher risk borrowers with low credit scores will also get squeezed out. The impact has truly been felt from Wall Street to your street.”

“However, if you are looking to purchase a home, do not despair,” Dan continued. “Mortgage rates are still historically very low and it is truly a buyers market. There is creative financing available, you just have to do some more shopping. Please call me direct at 530-318-1945 and I help you purchase the Lake Tahoe home of your dreams. I will be happy to share all of my great connections in the mortgage business. Together, we can get it done!”

Mortgage Rates Dip After 5 Consecutive Weeks of Rising Rates

Mortgage rates had been inching up in 2007 until this past week. Freddie Mac released the results of its Primary Mortgage Market Survey that showed the 30-year fixed-rate mortgage (FRM) averaged 6.28 percent with an average 0.3 point for the week ending February 8, 2007, down from last week when it averaged 6.34 percent. Last year at this time, the 30-year FRM averaged 6.24 percent.

The 30-year FRM started 2006 at 6.21 percent and it reached a high of 6.80 percent on July 20, 2006. The 30-year FRM then declined to 6.18 percent at the end of 2006. The rate increased for five consecutive weeks to start 2007, up to 6.34 percent on February 1.

"News of moderate employment gains in January led to a halt in the recent upward trend of interest rate movements," said Frank Nothaft, Freddie Mac vice president and chief economist. "The 111,000 jobs added last month were fewer than had been anticipated, while the unemployment rate edged up unexpectedly. Throughout the year we expect rates on 30-year mortgages to average between 6.3 and 6.5 percent. The flat or increasing rate environment will likely cause the refinance share to contract gradually. In addition, the dollar volume of home equity cashed-out will also retreat from the record level of $314 billion set in 2006 to around $230 billion this year."

“Mortgage rates are still very historically low,” said Dan Spano, President of Paradise Real Estate in South Lake Tahoe. “The 30-year FRM stayed in double digits from 1979 until 1990. The average annual rate for the year 2000 was 8.05 percent. The 30-year FRM bottomed out in 2003 with an average rate of 5.83 percent. The current rate is only .45 percent higher!”

“This is an excellent time to invest in real estate in South Lake Tahoe,” Dan continued. “This is a unique market that is very under priced compared to other resort areas. It is only a matter of time before home prices will start to appreciate rapidly once again.”

2006 Final Report: Lake Tahoe Home Sales Down 35 %

The number of existing single-family homes sold in the Lake Tahoe area totaled 957 in 2006, down 35 percent from the 1,470 resold in 2005. However, the median price increased 8 percent to $807,313. This final report followed the same trend of declining sales in the first three quarters of 2006. Sales of condominiums at Lake Tahoe in 2006 were down 36 percent while the median price increased 11 percent to $489,125.

Tahoe City, California, located on the North Shore of Lake Tahoe, showed the biggest increase of 12 percent, up to a median price of $765,000. The nearby town of Truckee was the only Tahoe area that reported a decrease in the median price for 2006, down 3 percent to $669,000.

Incline Village, Nevada once again had the most expensive real estate in the area with the median price of $1,071,000, an increase of 8 percent from 2005. Homes located on the East Shore of Lake Tahoe in Nevada also increased 8 percent in 2006 to a median price of $915,000.

2006 sales of single-family homes in South Lake Tahoe, California were 35 percent less than 2005, with a modest price increase of one percent to $478,000. “The South Shore offers the best value at Lake Tahoe,” said Dan Spano, President of Paradise Real Estate. “The market is starting to heat up once again as more second home buyers realize the median price here is considerably less than other resort areas in the West. I expect 2007 to be a fantastic year for real estate in South Lake Tahoe!”