Lake Tahoe Real Estate Blog

We have had 11 new listings in the past two days for single family homes ranging in price from $888,000 to $5,295,000. I’ll be brief, please view Incline’s Best Buys, too.

View photos and details for Incline’s new listings here:

821 Donna Dr $888,000

809 Charles $1,175,000

951 Garen Street $1,250,000 115 Tramway $1,499,000

View Incline Village parade photos from July 2nd featuring Tahoe Children’s Foundation and the Presbyterian preschool kids groups, the Pet Network, Veterans, the Fire Department, Knights of Columbus, Square Dancers and others all clad in patriotic dress! See a preview of the boat parade to be held friday.

Steve Peterson, Branch Manager
Chase Home Finance
Office: (800) 894-5440 Ext. 214
Cell: (775) 219-7151

As is to be expected, this is a rather ragged time economically, with very little news that can be called “good”–but no news that is negative enough to knock the markets for a loop.
 
Also to be expected–we have entered the heavy blood-letting phase that precedes recovery. (The obvious problem is that we don’t know how long this will last or how far it will go.) Prices are declining as bargain-hunters become more active in the markets and sellers finally acknowledge that they must bring prices down if they expect a sale. This is what happens when the market begins to form its bottom and foreclosures and emergency sales dominate the sales activity.
 
We will struggle out of this dark forest, indeed, but as I said, it is impossible to know just when and how much damage will be done. The only silver lining to this cloud is that, as I also said, current market activity makes sense in the context of a market seeking its bottom and a turnaround waiting to happen.  

Weekly Commentary

Thumbnail Sketch: Commodity prices are climbing again, with gold near the $1,000-an-ounce threshold and crude oil oozing north to nearly $150. Mortgage applications, meanwhile, are still slipping, with purchase money loan applications 22.2% lower recently than they were a year ago and refis down significantly.

It is difficult to be a happy camper in the face of these numbers. We are inclined to grasp at straws—like the slight upward revision to first quarter Gross Domestic Product growth (from 0.9% to 1%). More important, perhaps, is the rise in personal income, which climbed 1.9% in May—primarily due to the distribution of tax rebate checks (without which personal income rose 0.4%).

Intriguingly, personal spending rose at about a 0.8% rate (for the same reason) but the big winner was the savings rate, which made a breathtaking leap to 5%, a feat it has not accomplished since 1995. (By way of contrast, the savings rate has been confined to the 0.2% to 0.6% range over the past several months and before that was flirting with the negative range in which spending wipes out any savings.)

This is potentially good news, though we will wait to see the outcome. What seems significant is that taxpayers aren’t necessarily rushing off to Wal-Mart with their checks (though sales are up at that mega-chain), but are tucking their rebates away, it seems, in savings accounts of one sort or another.

In any case, the rebate checks aren’t having a particularly salient effect on consumer confidence which, as we saw last week, slipped from 58.1 in May to 50.4 in the June survey. That was a 16-year low, the fourth lowest reading in the history of the index (which was first compiled in 1969).

The worst news in the consumer confidence index was the low reached by the “current conditions” category. The nation is neither confident nor happy about today’s economy. Nor are the figures for future expectations at all positive. Beneath all of these figures, of course, is the question of how the labor market will perform—the central issue for consumer confidence, and a powerful influence on whether people buy homes. Watch employment data with care in the coming weeks for a preview of near-term economic conditions.

KEY INDICATORS 

Gold $945.80/ounce [up]Crude Oil (Brent) $142.16/brl [up]U.S. Dollar to…    Euro .6342 [slightly down]    Japanese Yen 105.98 [down]6-mo Treasury Bill Yield 2.12%10-yr Treasury Note Yield 3.96%[6-mo down 13 bps, 10-yr down 12 bps]11^th Dist Cost of Funds: 2.918%30-yr Fixed-rate Mortgage 6.88%15-yr Fixed-rate Mortgage 6.34%1-yr ARM 6.12% [HSH averages rates: 30-yr down 8 bps, 15-yr down 19 bps; 1-yr ARM up 20 bps] 

Mortgage Bankers Association Mortgage Applications Index week ending 6/20  Overall    461.3 (down 9.2%; down 8.8% the week prior)  Purchase Money Loans     333.4 (down 7.3%; down 4.4% the week prior)  Refinancing Loans    1212.2 (down 12.1%; down 15% the week prior) 

Weekly Jobless Claims 6/21    384,000 first computation – 384,000 prior week (with 3,000 upward revision) 

New Home Sales May    Down 2.5% from April 2008, down 40.3% from May 2007 

Existing Home Sales May    Up 2% from April 2008, down 15.9% from May 2007 – 10.8 months’ worth of homes available

The numbers are in and sales for single family homes are down for the 1st half of 2008 compared to the same period in 2007. It seems there are lots of buyers on the sidelines looking for good deals, and weakening sales prices offer more opportunities, especially if you know which sellers are motivated.

The median price for an Incline Village home sank to $1,042,500, down 13% from the median price in the first half of 2007 at $1,200,000. The average price was down 17% to $1,419,464 from $1,708,492 in 2007.

The median price for a condo in Incline Village dropped to $489,000 from $587,500 in the first half of 2008 from that period last year, a decrease of 17%. The average price for a condo was down 20%.

The lowest priced home to sell in 1st half 2008 was $560,000 compared to a $600,000 home sold in 2007. The highest priced home to date in 2008 is $6,700,000 down from the $8,500,000 home sold 1st half 2007.

Average list to sale price in 2008 is 90% compared to 94% in 2007 for the same period, showing some strength in buyer positioning in this down market. The average days on market is 154 in 2008 compared to 187 in 2007- are sellers more motivated to sell?

Through June 30, 44 homes sold in 2008 compared to 73 homes sold last year- this is a 40% decline in # of units sold. In 2008, 22 units sold over $1M and 22 sold under $1M, compared to 2007, 48 sold over $1M and 25 sold under $1M. More than twice the number of Million $ plus homes sold last year through June than this year.

View all of the homes sales for both the first half of 2007 and 2008

2007 1st Half Single Family Home Sales

2008 1st Half Single Family Home Sales

View the 2008 Midyear Home Sales Report for Lake Tahoe, note that the report includes PUD’s (freestanding townhomes) in the single family home category in Incline Village, whereas the stats reported above exclude PUD’s.

What a busy start to the 4th of July! Eight new single family homes listed in the past two days, with prices ranging from $670,000 up to $4,395,000.

418 Pat Ct $670,000 built in 1964 is in a great low elevation location on a small cul de sac. With 3 bedrooms, 2.5 baths and 1,628 sq ft with attached 2 car garage on .46 acres, this home is competitively priced with potential to remodel or build.

844 O’Neil $799,000 built in 1972 is located just up the steet, off the north side of McCourry. It has 4 bedrooms, 3 baths and 2 car attached garage with 2,315 sq ft living area on .45 acres. With filtered lake views, this home has a lot of space and potential!

546 Spencer Way $1,249,000 in Ponderosa neighborhood was on the market last year and expired this April with a price of $1,295,000. This 2,094 sq ft 3 bedroom, 3 bath home with 2 car attached garage on .4 acres has a lakeview. Built in 1979 and remodeled kitchen with new cabinets and granite counters, this home has curb appeal with Trex deck and new roof being installed. Tour Spencer

808 Toni Ct $1,400,000 in Lower Tyner was just re-listed with a $200k price reduction. Built in 1991 by Paul Franklin with 2 bedrooms, 2 baths and 2 car attached garage this 2,682 sq ft home has filtered lake views and ajacent green belt on .49 acres.

970 Fairway $1,950,000 is near the 18th hole of the Championship course. Built in 1978, this 3 bedroom, 3.5 bath, 2 car garage, 3,003 sq ft home on .5 acres fronts a creek. The vaulted ceilings and layout are condusive to a remodel.

796 Tyner $2,200,000 boasts 4,669 sq ft with lake views towards Sand Harbor. With 4 bedrooms, 3.5 baths, 2 car attached garage on .25 acre, this home has been remodeled with slab granite in the kitchen, hardwood floors, tounge and groove ceilings and is adjacent to open space.

467 Driver Way $3,750,000 is newly rebuilt in 2007. With 5,108 sq ft, 5 bedrooms, 4.5 baths, 2 car attached garage and lake views on a 1/2 acre lot on the Eastern Slope, this home has Tahoe craftsman appeal with wood trusses and stonework.

920 Lakeshore $4,395,000 is spacious with 5,497 sq ft, 6 bedrooms, 6.5 baths and 3 car attached garage built in 1982 on .46 acre lot with filtered lake views. This is one of four homes in a row now on the market, in close proximity to Incline Beach. Each have quite different appeal, this one has light interior finishes with lots of bedrooms and nicely landscaped.

View the other 3 Incline Lakeshore Blvd homes near Incline Beach.

View all 16 Lakeshore Boulevard homes for sale.

Please not that unless specifically stated, listings featured above are not my own, but shared via Incline Village MLS. I am very familiar with the “Best Buys” in each price range, and have a lot of insight to help buyers- please contact me to view any of these listings and take a tour of Incline Village neighborhoods.