Incline Village Real Estate Blog Archive

A July 17, 2009 headline of USA Today read “ Upscale Home Sales Lag As Jumbo Loans Are Hard To Get.”    During the first half of 2009, any realtor in Tahoe, San Diego, Los Angeles or San Francisco could have confirmed that upscale homes were not selling and the lack of mortgage financing was contributing to the problem.

Since the date of this headline, the Dow Jones average has increased from 8,711 to 10,972, the gross domestic product went from negative growth to positive growth and the Case Schiller home price index increased after three consecutive years of declining price trends.  With these positive economic trends, many financial institutions are starting to gain confidence in the price stability of the collateral securing mortgages; and consequently, many banks are sticking their toes back in the Jumbo Mortgage Market.

The evidence of new jumbo products and more lenient underwriting guidelines are showing up in many places:  US Bank is now offering both construction loans and lot loans; Bank of America, US Bank and GMAC are offering 80% jumbo loans for primary residences; US Bank and Bank of America are offering 75% jumbo loans on second homes; and ING, Bank recently increased its maximum loan to value for jumbo loans on primary residences to 75%.   Although the maximum loan to value for larger jumbo loans is slightly lower than 80%, they are available from several banks up to $3,000,000.

Similarly to what happened in the early 80’s, the strengthening economy is encouraging financial institutions to expand their jumbo mortgage products; and as competition intensifies, loan to values and underwriting guidelines are becoming more lenient and jumbo loans  are coming back.

Steve Peterson

Branch Manager

Sierra Pacific Mortgage

Incline Village & Crystal Bay 1st Quarter 2010

In this kind of market, who do you turn to?

The newly adjusted real estate market has resulted in a downsizing of offices and agents leaving the business; this is evident by the decrease in membership with the National Association of Realtors.  However, clients - now more than ever - need the expertise of a good agent to guide them through the idiosyncrasies of a community, its market place, and the continually changing face of real estate.

So who should clients turn to in this current real estate climate?

A recent Inman News article stated that buyers and sellers want to work with local, well-managed offices. In today’s market, companies and agents must be willing to work harder and longer with buyers, be well educated and patient when working with bank-owned properties and short sales, and be able to concentrate and advise clients on the local market.

“The companies and agents who will lead us out of this current real estate market mess will share three key attributes: they will be the most competent in their craft, utilize all available technology, and be the most dedicated to customer service.

This defines Lakeshore Realty.

First Quarter statistics for 2010:

There were a total of 51 sales broken out as 20 single family sales, 11 Planned unit developments (freestanding units) and 20 condominiums.

Single family residential:

The first quarter sales indicate the number of sales up but the dollar volume is down. Median home prices fell to $925,000, a 51% decrease from last year. This decrease reflects the impact of REO's and short sales which made up 26% of the total 20 residential sales.  The median selling price of the 6 distressd sales was $620,000.  There were 7 sales over $2 million which impacted the total sales volume of 2009 at $31,892,950 compared to 2010 of  $24,596,500.  

Planned Unit Developments had the largest increase in sales from 2 in 2009 to 11 in 2010.  The median sales price increased from $416,250 in 2009 to $595,000 in 2010.  Their was only 1 distressed sale.

Condominiums 1st  quarter  2009 totaled 11 sales with the median price of $350,000 compared to 20 in 2010, with the median price of $318,450.   The distressed sales totaled 6 out of the 20 sold, with a median price of $220,125.

The second quarter is opening strong  with 50 sales pending and the  quarter is just starting. REO's and Short Sales will continue to impact the inventory as more properties come on the market. Based on the 174  active homes only (8) are REOs or foreclosures.

Sellers must understand that prices are affected by the distressed sales throughout the village. Pricing needs to be realistic to sell. 

A new interesting number to look at is "cumulative days" on the market. This new number  gives a total history of properties which hit the market especially those listed by different agencies while no sale occurs. The range can vary from just listed with 10 days to over 1000 days in some cases.

MLS Links for March 7th -March 14th

See the links below for more information on listings from the MLS.  This week shows more properties going under contract and our sales numbers are up significantly from last year at this time. Short sales seem to be on the rise and the graphs at the bottom of this post indicate the percentage of short sales for residential, condo, and PUD listings.  Stay tuned for a 2010 first quarter update regarding sales and prices at the end of this month!

New Listings

• Single Family Homes
• Condos
• PUDS

Price Changes

• Single Family Homes
• Condos
• PUDs

Under Contract

• Single Family Homes
• Condos
• PUDs

Sold in 2010

• Single Family Homes
• Condos
• PUDs

The graph above shows that there are 39 total sales under contract and 12 indicate “pending bank approval.”  Looking just at residential sales, there are a total of 19 escrows and 8 are short sales.  For condos, there are 24 escrows total and 11 short sales, and lastly there are 9 PUDs in escrow with 2 short sales.

***Information herein is deemed reliable, but is not guaranteed***

MLS Information Feb. 19 - Feb. 28

New Listings

• Single Family Homes
• Condos
• PUDs - no new listings

Price Changes

• Single Family Homes
• Condos
• PUDs - no price changes

Under Contract

The following status' apply for listings "Under Contract" :

P = Pending Bank Approval (REO, Short Sale, Foreclosure)

C = Contingent - Contingent on Contract Terms

U = Under Contract - Contingencies Released

• Single Family Homes
• Condos
• PUDs

The only lakefront activity for 2010 is the sale pending on "The Tahoe Treasure"  listed at $12,000,000. This sale represents 573 Lakeshore Blvd, two of four parcels are under contract. The sale includes a buildable parcel and resident which encompasses a buildable lot and a residence both on over 4 acres.

• Single Family Homes
  • Short Sales
• Condos
• PUDs

Residential - 2010 Activity

Condos – 2010 Activity

PUDs – 2010 Activity

Market Trends : A look at Condo sales from 2009

Jan-09 vs. Jan-10: The number of under contract properties is up 233% 

MLS Information for the Week of Feb. 5th - Feb. 12th

As Feb. moves forward, sales are headed in a positive direction and offering buyers who are looking for an excellent entry level price range good values.

• New Listings
  • Single Family Homes
  • Condos
  • PUDs
• Price Changes
  • Single Family Homes
  • Condos
  • PUDs - no price changes
• Under Contract
  • Single Family Homes
    • Under Contract total single family homes is 18, the popular price range for home sales in 2010 falls below $1,000,000
      • 12 units under $1,000,000
      • 3 units $1,000,000-$2,000,000
      • 2 units $2,000,000- $3,000,00
      • 1 unit   $4,000,000-$5,000,000
  • Condos
    • There are 11 units of the 15 under contract priced below $300,000.
  • PUDs

• Sold in 2010
  • Single Family Homes
    • A shout out goes to one of our agents- Nevada Methard  who closed 936 Lakeshore Blvd this week at $2,750,000 representing both buyer and seller.

   

  • Condos
    • Out of the 9 sales 7 closed under $400,000.
  • PUDs

Snap shot of current market- Incline Village & Crystal Bay, Nevada, Lake Tahoe

Residential Sales

Price breakdown for Single Family Homes:

$300-$600,000= 14 $1,800,000-2,000,000=9

$600,000-$800,000=13 $2,000,000-$2,500,000=11

$800,000-$1,000,000=20 $2,500,000-$3,000,000=13

$1,000,000-1,400,000=27 $3,000,000-$5,000,000= 20

$1,400,000-1,800,000=13 $5,000,000-34,000,000=16

Condominium Sales 

The largest number of listings (53) are priced below $400,000, followed by second largest group of 30 units priced between $400,000 to $600,000.

The complex with the largest number of listings is McCloud with 16 units ranging in price from $375,000 (Low) to $520,000(Median).  Bitterbrush follows McCloud with 10 units listed priced -$369,000 (Low) $475,000 (Median).

The lowest priced unit, listed for $169,950, is at Toepa. A median list of $449,000 is found at Fairway Pines while the highest price unit at $2,100,000 is located at Stillwater Cove.