Short Sales Catching On in South Lake Tahoe

These days many homeowners are defaulting on their loans and risking losing their homes. To save themselves from foreclosure, short sales have become very popular. This evening I found 38 listings in the South Lake Tahoe MLS that are possible short sales. If you are unfamiliar with short sales, here is a great article that was printed in a publication I received from the Nevada Real Estate Division.

 

Short Sales
By Bruce Alitt, Chief Investigator

A short sale situation occurs when the owner of a property owes more than the market value of the property and has financial hardships that require the owner’s lender or lenders to approve a sale in which the lender(s) will actually receive less than the amount that is owed.

The approval by the lender(s) is required because the loans are liens against the property that must be satisfied in order for clear title to pass from the seller to the buyer. That means that the lender(s) must accept getting less than the amount owed and agreeing that the lien(s) is satisfied and can be cleared.

Even though there must be lender approval in a short sale situation, the owner/seller still must be presented with and accept the offer. That is the critical first step in the short sale process. The owner must accept the offer contingent on approval by the lender. The contingency is critical because the owner cannot perform on the transaction without either the approval of the lender(s) or a cash out of pocket situation, which is usually not feasible. Once the owner has accepted the offer contingent on lender approval, the offer must be submitted to the lender with any other documentation required by the lender. This documentation varies from lender to lender. At this point the transaction is out of the control of the licensees and owner, who must wait on lender approval, counter offer or rejection. Due to the current number of foreclosures and short sales, this can take several months. Both the seller and buyer should be made aware, in advance, of this unknown time factor.

During this “lender approval” time period, the house should stay on the market, however licensees should be made aware of its contingent status.

The seller must be made aware that if the lender does agree to the short sale, there could be a deficiency judgment, credit consequences or the amount forgiven may be considered as income for tax purposes. Every seller should be advised to get professional advice from an attorney, certified public accountant and/or a tax consultant.

Posted on August 7, 2008 at 10:36 pm
Drew Kondo | Category: Foreclosures | Tagged , , , , ,

June 2008 Statistics for South Lake Tahoe Real Estate

As predicted, the median sale price for single-family residences in South Lake Tahoe dropped dramatically in June, down to $365,000. The market is certainly suffering. However, I’m becoming skeptical of the statistical barometers we continue to rely upon. Perhaps the steep decline in median sale price doesn’t quite reflect what’s happened to home values here in South Lake Tahoe. Perhaps the decline in median sale price is due in large part to increased activity in the lower price bands. Given how tight the lending market has been with jumbo loans, this is a valid hypothesis. I’ll dig through some data in the next few days to see if I can find numbers to support.

The foreclosure market was active in June with 6 foreclosure escrows of the 37 homes that went into escrow for the month. There were also 3 short sale properties that went into escrow. As of today, there are 9 foreclosure single-family residences on the market.

Lot sales and condo sales were few and far between in June. Five condos sold and 4 went into escrow. Six lots sold and 5 went into escrow in June.

Activity has increased in the 1 to 2 million dollar price band. This price band has averaged 1.75 sales per month over the last year. However, 4 sold in June, and right now there are 5 homes in escrow that were listed between 1 and 2 million dollars.

Month & Year Listings at Month’s End Escrows at Month’s End Homes Sold Median $ Over Last 12 Mths. Median Sale $
June 2008
465
57
30
$415,000
$365,000
May 2008
414
47
31
$425,000
$415,000
Apr 2008
372
44
21
$428,000
$379,000
Mar 2008
361
40
34
$425,000
$387,500
Feb 2008
374
52
16
$435,750
$412,500
Jan 2008
366
33
16
$449,900
$428,000
Dec 2007
382
28
34
$449,900
$502,000
Nov 2007
403
42
27
$445,000
$460,000
Oct 2007
353
15
39
$450,000
$425,000
Sept 2007
442
30
30
$450,000
$398,250
Aug 2007
538
45
38
$464,000
$421,500
July 2007
557
40
25
$463,000
$435,000
June 2007
552
33
35
$465,000
$440,000
May 2007
522
47
32
$465,300
$460,000
Apr 2007
423
32
28
$465,150
$392,500
Mar 2007
359
37
30
$475,000
$507,000
Feb 2007
327
25
25
$474,250
$492,500
Jan 2007
331
37
21
$474,500
$395,750
Dec 2006
339
29
40
$476,000
$497,500
Nov 2006
362
50
44
$474,500
$483,500
Oct 2006
411
55
53
$465,000
$450,000
Sept 2006
463
63
31
$474,500
$442,000
Aug 2006
548
46
36
$475,000
$427,500
July 2006
571
49
37
$485,000
$475,000
June 2006
532
51
37
$485,000
$480,000
May 2006
424
50
35
$485,000
$465,000
Apr 2006
302
50
32
$489,000
$504,000
Mar 2006
264
39
38
$489,000
$485,140
Feb 2006
262
51
21
$485,000
$489,000
Jan 2006
256
32
20
$482,000
$508,750
Dec 2005
198
n/a
31
$475,000
$450,000
Nov 2005
282
42
53
$475,000
$455,000
Oct 2005
300
69
55
$465,000
$485,000
Sept 2005
313
93
63
$455,000
$495,000
Aug 2005
270
96
79
$446,000
$510,000
July 2005
209
110
74
$430,000
$484,500
June 2005
188
113
65
$425,000
$456,000
May 2005
172
96
57
$410,000
$495,000
Apr 2005
116
91
72
$399,000
$488,500
Mar 2005
88
83
50
$390,000
$440,000
Feb 2005
72
86
34
$390,000
$449,500
Jan 2005
85
63
47
$383,250
$405,000
Posted on July 9, 2008 at 9:19 pm
Drew Kondo | Category: Statistics | Tagged , , , , , , ,

May 2008 Statistics for South Lake Tahoe Real Estate

After some of the statistical revelation I experienced over the last week, it’s become much easier to make conclusions on this market that can be validated with empirical evidence.

The median sale price for single family residences increased 9.5%, from $379,000 in April to $415,000 in May. Unfortunately, this is not evidence of a market turnaround. Most of the buyers who acquired property in May were simply higher priced buyers. Of the homes sold so far in June, nothing has closed above $350,000.

Prices in South Lake Tahoe will continue to drop. Look to see around twenty foreclosures hit the market this summer and even more later this year. The foreclosures are being priced very low, and they continue to force sellers to lower their prices to compete. There were sixty price reductions in the MLS over the last two weeks. We’ll see hundreds more over the summer.

A piece of positive news is that buyer activity is increasing. We saw more homes go into escrow last spring than in the spring of 2007. Right now, there are sixty-four homes in escrow. We haven’t seen that many escrows at one time since October 2005! The bottom of this market may be in sight.

Month & Year Listings at Month’s End Escrows at Month’s End Homes Sold Median $ Over Last 12 Mths. Median Sale $
May 2008

414

47

31

$425,000

$415,000

Apr 2008

372

44

21

$428,000

$379,000

Mar 2008

361

40

34

$425,000

$387,500

Feb 2008

374

52

16

$435,750

$412,500

Jan 2008

366

33

16

$449,900

$428,000

Dec 2007

382

28

34

$449,900

$502,000

Nov 2007

403

42

27

$445,000

$460,000

Oct 2007

353

15

39

$450,000

$425,000

Sept 2007

442

30

30

$450,000

$398,250

Aug 2007

538

45

38

$464,000

$421,500

July 2007

557

40

25

$463,000

$435,000

June 2007

552

33

35

$465,000

$440,000

May 2007

522

47

32

$465,300

$460,000

Apr 2007

423

32

28

$465,150

$392,500

Mar 2007

359

37

30

$475,000

$507,000

Feb 2007

327

25

25

$474,250

$492,500

Jan 2007

331

37

21

$474,500

$395,750

Dec 2006

339

29

40

$476,000

$497,500

Nov 2006

362

50

44

$474,500

$483,500

Oct 2006

411

55

53

$465,000

$450,000

Sept 2006

463

63

31

$474,500

$442,000

Aug 2006

548

46

36

$475,000

$427,500

July 2006

571

49

37

$485,000

$475,000

June 2006

532

51

37

$485,000

$480,000

May 2006

424

50

35

$485,000

$465,000

Apr 2006

302

50

32

$489,000

$504,000

Mar 2006

264

39

38

$489,000

$485,140

Feb 2006

262

51

21

$485,000

$489,000

Jan 2006

256

32

20

$482,000

$508,750

Dec 2005

198

n/a

31

$475,000

$450,000

Nov 2005

282

42

53

$475,000

$455,000

Oct 2005

300

69

55

$465,000

$485,000

Sept 2005

313

93

63

$455,000

$495,000

Aug 2005

270

96

79

$446,000

$510,000

July 2005

209

110

74

$430,000

$484,500

June 2005

188

113

65

$425,000

$456,000

May 2005

172

96

57

$410,000

$495,000

Apr 2005

116

91

72

$399,000

$488,500

Mar 2005

88

83

50

$390,000

$440,000

Feb 2005

72

86

34

$390,000

$449,500

Jan 2005

85

63

47

$383,250

$405,000

Price Range

Active Listings

$0 – $250,000

6

$250,001 – $300,000

21

$300,001 – $400,000

81

$400,001 – $500,000

67

$500,001 – $600,000

60

$600,001 – $700,000

38

$700,001 – $800,000

34

$800,001 – $900,000

22

$900,001 – $1,000,000

21

$1,000,001 and up

64

Posted on June 13, 2008 at 4:02 pm
Drew Kondo | Category: Foreclosures, Statistics | Tagged , , ,