It has been a couple of months since I ran the numbers for the market activity in South Lake Tahoe, so I included the past three month’s activity in my calculations.
354 Active Listings, of those listings 66 are either REO or Short Sale listings comprising 19% of the total. As usual, these calculations are made on sales activity of single family homes in the City – County areas of the South Tahoe Area Realtors MLS data.
186 Sold listings in the past three months with distressed properties making up 37% of those homes closed. 55 – 30% REO Listings 14 – 7% Short Sale Listings
Pending listings are made up of 75% of either REO or Short Sales.
The trend in which distressed properties are a minority of the inventory and a majority of those homes that are selling seems to have shifted down a bit. I will venture to say that “real sellers” have realized that their homes will sell if priced competitively and buyers would rather deal with a “real seller” rather than a bank and certainly rather than a short sale, which is anything but “short’. It is all about the well priced property. Let’s see what happens in the next month with the pending listings being comprised of 75% distressed properties. We’ll see how many of the short sale buyers get tired of the wait and snatch up a well priced home that not a distress sale. More Later.
Sales in South Lake Tahoe have increased over the past couple of months. We were consistently closing 30 escrows a month but have recently jumped up to 129 sales (single family homes only) in the past month.
444 Active Listings of those listings 65 are either REO or Short Sale listings comprising 14.6% of the total. As usual, these calculations are made on sales activity of single family homes in the City – County areas of the South Tahoe Area Realtors MLS data.
129 Sold listings in the past month with distressed properties making up 44% of those homes closed.
33 – 25% REO Listings 25 – 19% Short Sale Listings
90 Pending listings at present with over 55% of those properties are either REO or Short Sale.
The trend continues for distressed properties to be a minority of the inventory and a majority of those homes that are selling. That continues to tell me that well priced properties will sell in this climate of low consumer confidence and low interest rates.
I was invited to go to Nicaragua on a Medical/Dental Mission trip by a longtime Tahoe friend and I said “Yes”. Way back when, I was a dental assistant and they needed one on this trip. We had no dental instruments or supplies built up in reserve as this was a first mission of this type for my friend who generally does construction projects in Central American countries. I made a few phone calls and was amazed at the generosity of all my old dental contacts so we had more than enough to do the job.
We went to a very poor area in the north western part of Nicaragua called San Ramon and Bonete #7 (which is a word similar to borough) to serve the people, some of them had walked 6 hours to get there. I was told it would be hot, but it was HOT. The work was hard in hard in dirty, smelly places. We were able to provide basic medical services and the Tahoe dentist and I helped approximately two hundred people with pain relief (extractions) over four and a half days of clinics. It was a stretch for everyone and nerves were frayed at the end but I just had to think that I would be cool, comfy (with enough food to eat) at home soon but the Nicaraguans would still be right where we left them. I hope I don’t forget them and their conditions as I see how rich we are here. I am glad I had something to give to these people who gave me so much more than they know.
There is a new may of thinking about foreclosure for the American homeowner, especially the homeowner who is not in financial distress and is able to pay the mortgage payment. These homeowners are viewing their homes as bad investments and are choosing to walk away rather than pay for years on a property that may never be worth what they owe. Take a look at this video from the Today Show where homeowners who are doing just that, and notice the shift from the “guilty feelings” that generally go along with such a decision. http://today.msnbc.msn.com/id/26184891/vp/36661157#36661157
I am not advocating a position either way on a “Strategic Foreclosure”, but rather, just wanted to make note of this amazing paradigm shift and what it may mean in this economic crisis.