Year to date in South Lake Tahoe there have been 42 single family homes that have closed escrow. I continue to see the number of bank owned and short sale properties making up over 50% of the market. Especially surprising numbers since that type of listing is just 19% of the properties that are for sale.
Sold Stats for 2010
- 42 Sold Listings in 2010
- 15 REOs
- 9 Short Sales
- Comprising 57% of total homes sold
Active Listings Stats
Pending Listing Stats (Homes in Escrow)
- 87 Listings Currently in Escrow
- 20 REOs
- 45 Short Sales
- Comprising nearly 75% of the Total Homes in Escrow
These numbers are amazing to me because they show that the distressed properties are selling and other listings are not. I would caution any seller who attempts to navigate these turbulent times of home selling to price their home boldly, perhaps even a bit under the current market value to play the same game as the banks. This strategy can create a “feeding frenzy” and savvy sellers could end up with multiple offers which can go over the listed price. Otherwise you may be looking at a listing that can languish on the market without activity for months while the value continues to decline. If you need to sell a property now, price courageously and get the listing on as many websites as possible with an agent who has access to an extensive National Distribution Network on the Internet.
Radon is an odorless, colorless, radioactive case that arises from the decay of naturally occurring minerals in the soil. The gas is linked to 21,000 lung cancer deaths a year, second only to cigarette smoking, according to the EPA. A report from the California Geological Survey in June 2009 estimated that 23,400 people in the Lake Tahoe area live in buildings where radon is likely to equal or exceed the U.S. Environmental Protection Agency’s recommended action level of 4 picocuries per liter. The report was based on geological data, as well as results from a survey of 443 homes in South Lake Tahoe between 2006 and 2007.
According to the survey, about 40 percent of homes in the Lake Tahoe area are at or above the EPA’s recommended action level, while approximately 55 percent of homes in the El Dorado County portion of the basin who participated in the survey are at or above the recommended action level.
Winter is a good time to test a home for radon, Huber said.
“It’s the best time to test because your house is closed up,” she said.
I had a recent conversation with Ginger Huber who is in charge of Environmental Health in El Dorado County, and she wanted me to make sure and let you know that she is almost out of the “free” testing kits, but you can get them from the State of California for a nominal fee. I found this article in a past issue of the Tahoe Daily Tribune and thought you might find the information on radon gas helpful.
Hot news for people 55 or over who are selling a house in another county of California and want to keep their low property taxes. This is a big deal. Until recently this strategy was not available to residents outside of El Dorado County. With this change you can transfer from any county within California to El Dorado County.
My husband and I just were successful in utilizing Prop 90 within El Dorado County. We sold a home and were able to keep the old property tax base on our new home. It was a bit tricky because we sold our house and were in the process of building the replacement home and would not know the value until later. The new house needed to be valued by the assessor at an equal or lower value in order to qualify. We just heard from the County that we were successful. It is generally not that much of a gamble. If you sell a house and buy a new one, it is much easier to know that you qualify. I am including the link to the El Dorado County’s website http://www.co.el-dorado.ca.us/assessor/prop90info.htm.
On December 10th, 2009, the Board of Supervisors approved the introduction and 1st reading of the Proposed Prop 90 ordinance. On December 15th, 2009 the Board adopted the ordinance after its second reading. The proposed ordinance will have an estimated effective date of February 12th 2010, which is 60 days after the adoption.
As the ordinance is currently written and based on Revenue and Taxation Code Section 69.5 (Prop 90), in order to qualify for a base year transfer:
- The replacement residence must be acquired after the effective date of the ordinance allowing base year value transfers from other counties.
- As of the date of transfer of the original property, the claimant or the claimant’s spouse is at least 55 years of age or severely and permanently disabled. There is no age requirement for persons who are severely and permanently disabled.
- The claimant and/or the claimant’s spouse has not previously been granted the property tax relief provided by section 69.5. The sole exception to this requirement is if relief was first granted for age, relief can be granted a second time if the claimant or claimant’s spouse subsequently becomes severely and permanently disabled, and has to move because of the disability.
- The original propertywas eligible for the homeowner’s exemption or the disabled veterans’ exemption either at the time it was sold or within two years of the purchase or new construction of the replacement dwelling.
- As a result of its transfer, the original property must (1) be subject to reappraisal at its current full cash value in accordance with sections 110.1 or 5803; or (2) receive a base year value determined in accordance with section 69 (intracounty disaster relief), section 69.3 (intercounty disaster relief), or section 69.5 because the original property qualified as a replacement property under one of those sections.
- The replacement dwelling is purchased or newly constructed within two years of (before or after) the sale of the original property.
- The replacement dwelling must be eligible for the homeowner’s exemption at the time the claim is filed.
- The replacement dwelling must be of equal or lesser value as compared to the original property. This means that the full cash value of the replacement dwelling on the date of purchase or completion of new construction must not exceed:
- 100 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed prior to the date of sale of the original property,
- 105 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the first year following the date of the sale of the original property, or
- 110 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the second year following the date of the sale of the original property.The “full cash value of the original property” includes any inflationary factoring that occurs between the sale of the original property and the purchase of the replacement dwelling. The “full cash value of the replacement dwelling” does not include any inflationary factoring.
- If the original property was substantially damaged or destroyed by misfortune or calamity and sold in its damaged state, the full cash value is determined immediately prior to the misfortune or calamity.
- The claimant must file a claim for property tax relief under this section within three years of the date the replacement dwelling was purchased or the new construction of the replacement dwelling was completed.
As I scan the Internet for information on the current Real Estate Market – I am seeing more encouraging policy changes and proposals that encourage home buyers. This bit of news was gleaned from the California Association of Realtors.
“The Dept. of Housing and Urban Development (HUD) announced Friday, January 15, that it is instituting a one-year moratorium on the Federal Housing Administration (FHA) 90-day anti-flipping rule.
With certain exceptions, such as HUD-owned and bank-owned properties, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. However, beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors, providing access to a broader array of recently foreclosed properties.
Under the temporary waiver, all transactions must be arm’s-length, and most properties will require additional documentation of improvements and justification of the price increase. Additional documentation may include a second appraisal and a property inspection ordered by the lender.
C.A.R. recently submitted a letter to FHA Commissioner David Stevens detailing the challenges facing many home buyers using FHA loans, such as the lack of housing inventory available to FHA buyers, and the need for this rule to be revised to reflect current market conditions. The reexamination of the 90-day anti-flipping rule was passed as an action item during C.A.R.’s board of directors meetings in October.”
Thank You C.A.R.
When I talk to people who live in Tahoe who are looking forward to moving away, I am amazed. How can anyplace be better than Tahoe? My whole family gets so excited when it snows and it is cold and travel is difficult and the snow builds up on the sides of the road and in the yard. That means the skiing is good or even great. I love living in Lake Tahoe, all year long. From the winter skiing, springtime days warming up, long warm (not hot) days in summer and what about those spectacular autumn days. That’s when the bugs are dead the trails aren’t dusty and certainly not crowded. I took this photo on my phone on a wonderful ski day with my husband when other people were complaining about the hassle and mess of “all that snow”.
It was abou
t 18 months ago that we began offering property management services. We were amazed at the amount of positive feedback that addition generated. In these times we are frequently asked by home owners how they can hang on the their Lake Tahoe properties. Long term rentals are a good way to generate income that will supplement the cost of ownership. While it will not completely cover these costs, it sure helps. For me personally, I only look for investment properties in an area that has a quality property manager because it makes all the difference in the ownership experience. One of our clients puts it this way, “It seems like a dream come true to have someone else deal with the property”.
Because of this demand for local knowledge coupled with the need for quality, competent service we have expanded the property management division to include commercial and industrial properties.
What a great day here in South Lake Tahoe. We were just working away, happy to be inside the warm office when “What to our wondering eyes should appear?” No, not a reindeer, but a a big black bear right across the street from the office on Tahoe Keys Blvd. He (she?) was just lumbering along then decided to dash safely away from the oncoming cars (approaching slowly, as this is a BIG BEAR). After about ten minutes our Bear friend wandered off down Council Rock probably looking a a place to sleep for a few months.
I have had the recent pleasure of helping several families purchase their first homes. There is nothing more rewarding in my job as seeing the excitement that accompanies moving into your first home. This is the silver lining in the real estate market. Market conditions and historically low interest rates have created a high affordability index which is over 55%. That means that over half of the Californian population can qualify to make the payments on a home. Combine that with the recent extension of the first time home-buyer credit from the feds and we have a great time to be a first time home buyer.
I am loving the fact that I can be part of the process that places these first time home buyers into homes where they can put down roots and raise their families. Especially when their children will grow up here in Tahoe with my grandchildren – watch out when they start to ski.
This afternoon I was on the steps of the El Dorado County Courthouse for a foreclosure sale of real estate. I am always so amazed when I do this to see the little slice of Americana in motion. The property I was interested in bidding on was postponed but it was still a successful visit. While we were waiting for the auctioneer to arrive I sat next to the courtroom sketch artist who was touching up her rendering of the courtroom proceedings, I am sure I will see those same images on the news later tonight. There was an elderly woman (I have to be careful here as that could be a reference made to myself) who was asking tons of questions since this was her first visit to an auction. She asked me, “Do they really have the auction on the courthouse steps?”. She was amazed to know that they certainly do. It is a wonderful atmosphere of excitement and anticipation, almost carnival like. I say it was a success, even though I didn’t get to bid on the property that I have been watching, I was entertained by all the goings on and as I was leaving I went to the finest hardware store anywhere, Placerville Hardware, what a treat.
Cabin on Echo Summit
Did you ever ask yourself this question as you were driving up to Tahoe along the Highway 50 corridor? There are an amazing number little cabins beginning at about Whitehall. Well . . . the answer is they are mostly recreation residences, or Forest Service Cabins. There are almost 600 of them on on the El Dorado National Forest and that includes those in the Lake Tahoe Basin. You can buy these cabins, not the land, just the cabins when the present owners wish to sell them. It is sort of like buying a car or a boat because they are considered personal property in the form of improvements on land that is owned by the public, you and me. You get to use the land with a 20 year special use permit (not a 99 year lease) issued by the Forest Service. There is a yearly fee for the land use and, get this, you also pay real property taxes at about 1.1% of the purchase price to the county where the cabin is located. They tell me taxes are charged because you receive county services for your cabin which is good, especially if you need a fire truck or a paramedic. These are cash transactions and there may not be winter access or winter water, so are you wondering, “Why in the world would I want to pay cash for a cabin on land that I don’t own that does not have winter water or winter access and I can’t rent it our more than 14 days per year?” Good question. The answer to that one seems to be the lifystyle that comes with these wonderful places. In my many years of representing sellers and buyers of these cabins I have been witness to the amazing transformation that comes over families who rest at ease as they see the new families who are buying the place where their family memories were born as they realize that more wonderful memories will continue to be created for the new owners. Each cabin tells it’s own story and I can say that I’ve never heard the same story twice.
