Joel Dameral's South Lake Tahoe Real Estate Blog (530-545-8827)

Housing Market
New home sales lost momentum in October while the resale market continued to surge due to lower mortgage rates and the extended homebuyer tax credit. Seasonally-adjusted new home sales fell 11.3% from the previous month to an annual rate of 355,000 units. The seasonally-adjusted annual rate of new home sales in November is back down to its lowest levels since April. New home sales for the previous three months were also revised lower by 49,000 units. It is worrisome that lower rates and the extended housing tax credit were not enough to fuel demand for new homes in November.

While the new home affordability ratio remains at very high levels, it is still almost 10 percentage points higher than the existing home ratio. Median new home prices in November rose to $217,400 from a downwardly amount of $209,400 in October. Prices increased 3.8% from the previous month but are still 1.9% lower than they were this time last year. Median new home prices have now recorded 11 straight months of year-over-year declines. Further price cuts and use of incentives may be necessary to attract demand in the new homes market. However, the continued reduction in inventory levels is a positive sign for stabilization in the new homes market. In November, new home inventories declined to 234,00 units from an October figure of 241,000 on a non-seasonally adjusted basis. Seasonally-adjusted inventory of unsold homes have declined for 31 straight months to 235,000 units.

Sales in the existing home market remained strong in November. The seasonally-adjusted annual rate of all existing homes jumped 7.4% from October levels to 6,540,000 units. This is the highest the seasonally-adjusted annual rate of existing home sales since February 2007. Existing single-family home sales increased 8.5% from last month while condo and co-op sales remained flat from October levels at 770,000 units. Lower mortgage rates and the extended housing tax credit have kept buyers interested due to all-time high affordability.

In November, the median sales price for an existing home increased slightly to $172,600 from $172,200 in October. This was the first gain in median existing home prices since June although prices are still 4.3% lower than they were this time last year. Existing home inventory posted declines for the fourth consecutive month in November, easing 1.3% to 3,518,000 units from a revised 3,565,000 units in October. This is the lowest level of existing home inventory on the market since December 2006.

After rising for nine consecutive months, the National Association of Realtor’s pending home sales index in November fell for the first time since January. The Pending Home sales Index, which is a forward-looking indicator based on contracts signed in November, dropped 16.0% to a reading of 96.0 from an upwardly revised reading of 114.3 in October.

National average mortgage rates declined from the previous week to 5.09% in the latest Primary Mortgage Market Survey released weekly by Freddie Mac on January 7th. This was the first weekly decline for average fixed rates since the beginning of December. Rates had been steadily moving higher and increased for four straight weeks before this past week’s decline. In the week ending January 1st, the MBA’s seasonally-adjusted purchase index increased 3.6% from the previous week but was still down 36.33% compared to the same time last year. This was the first weekly gain for the purchase index in the past month while the year-over-year drop in the purchase index is the largest since February 2009.

New Years Eve at Lake Tahoe has always been a GIANT party.  I’m sure this year will be no different.  Local law enforcement is estimating 45,000 people to jam the Stateline area.  As usual they will close Highway 50 Thursday night and reopen it when the revelers have moved into warmer surroundings.  The Nevada side of the lake will enforce a 12am curfew for those under 18 and the California side will enforce the 10pm curfew for the same age group.

 For those families not interested in the kids seeing the  “street scene” here is an option:

 New Year’s Eve Kids’ Night Out  Starting at 7pm Tahoe Gymnastics 867 Eloise Ave Suite B.  Children will celebrate with games, an obstacle course, trampoline time, pizza, arts and crafts, and a midnight countdown complete with hats, horns, noisemakers, streamers, and balloons.  Prices range from $40 to $100 for overnight care.  Call for more info and to pre-register 530-544-7314.

 The following services and taxicabs are available on New Year’s Eve:

 A1 Tahoe Interstate Taxi

530-725-0199

866-418-3844

AAA Lake Tahoe Taxi

530-577-7000

AAA’s Tipsy Tow Program

Offers a free tow for drunken drivers from 6pm Dec 31 until 6am Jan 1.  Members and non-members alike can call 800-222-4357 for a free tow up to five miles.

BlueGo

530-541-7149

Lake Tahoe Party Bus (Parties of 10 or more)

775-720-7278

Lakeshore Taxi

530-544-3600

Yellow Cab

South Shore 530-544-5555

Stateline 775-588-1234

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The buying public seems to think that “great deal” equals foreclosure, short sale or bank-owned property. The truth is that these properties may appear to be bargains, but in many cases you could be buying someone else’s problems. If you’re looking for a bargain property, here are some key issues to consider:

1. What is your time line for purchasing?
You may find the perfect short-sale property, and the seller may accept your offer. The challenge is that you don’t have a deal until the bank approves the short sale. At many large lenders a single processor may have up to 500 files on his or her desk at one time. Realtors are reporting that it can take six or more months to get an offer approved. The wait can be extremely frustrating. It can also be costly.

For example, if prices are still declining in your area and price range, the offer you made six months ago may be too high. Also, if you qualify for a loan now, will you still qualify six to eight months from now if mortgage interest rates have increased? More importantly, can you afford to make a higher monthly payment? If possible, search for a short sale or an REO where the bank has preapproved the sales price. It still may take a long time to close, but not as long as it would if the price was not preapproved.

2. Are you prepared to be in a multiple-offer situation?
Since so many buyers are searching for distressed properties and the approval process takes so long, multiple offers are common. The lender will not tell you about other offers. They may, in fact, tell you that your offer will “probably” be approved — but you cannot rely on this representation.

If another offer comes in at a higher price and at better terms, the bank is obligated to take the best offer. If the property is a short sale, the seller’s signature on the document merely opens the negotiation — it does not finalize it. Furthermore, the seller/lender may continue to market the property even after they have signed a contract with you. This is simply smart business, as so many borrowers are having trouble closing transactions due to appraisal issues.

3. Ask the agent if the seller participated in the “Cash for Keys” program
The best candidates for good bargains are those properties where the sellers are still occupying them. Many banks have a program called “Cash for Keys.” This program pays the owners of foreclosure and short-sale properties money to keep the owner from trashing the property when they move out. I have seen copper piping ripped out of properties, concrete poured down the plumbing, and appliances stolen or destroyed. Cash for Keys is designed to minimize these behaviors.

4. Beware of vacant properties
Never purchase any property without doing a physical inspection. Also, if it takes more than 90 days to negotiate the transaction or if the house has been vacant, have the property re-inspected prior to signing off on the final deal. The reason for this is that the longer a house stays vacant, the more likely it is to have problems.

For example, pack rats and mice are more likely to move into vacant properties. They can chew through the wiring and generally wreak havoc with the home’s electrical systems. Also, if the dishwasher is not run at least once a week, the seals can dry out. If you live in an area where the pipes are not winterized and there are freezing temperatures, a pipe may burst. You may not discover the problem until you turn the water back on after closing.

5. Is the deal more important than your lifestyle?
A property can be a great deal in terms of the price, but is it worth it if it’s in a poorly rated school district or if the commute is an hour from your workplace? What if the property has a terrible floor plan, is in the flight path for a major airport, or occasionally gets a whiff of the sewage treatment plant? When you purchase, it’s important that you take all of these issues into consideration rather than focusing exclusively on the price. A property with any of these types of problems will be harder to sell in the future.

It’s important to consider the price in conjunction with the quality and the convenience of your lifestyle once you move in. For example, an extra 30-minute commute over a number of years can easily chew through thousands of dollars in terms of your vehicle costs, not to mention the wear and tear from the additional stress of commuting.

There are good distressed property deals out there. Nevertheless, don’t limit your search. Have your agent show you seller-occupied homes that are not distressed properties. Thirty-five percent of all properties are owned free and clear. These properties are often lovingly maintained, in top-notch condition, and in more desirable locations. In the long run, they may be a much better bargain.

Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, trainer and author of “Real Estate Dough: Your Recipe for Real Estate Success” and other books.

 

Image by cobalt123 via Flickr

My family is having a huge estate sale at  my grandfathers house.  The address is 816 Hazel Drive in South Lake Tahoe.  The items include antiques (solid brass beds, wagon train stuff, furniture, wood cook stove, and much more), power and hand tools (new and used), furniture, collectibles of every kind, camping, fishing, and hunting gear.  There is something priced for everyone.  Hope to see you there.

Image by Asten via Flickr

Here are just a few family friendly events for Friday Dec 4th and Saturday Dec 5th.

Friday Dec 4th

1. South Lake Tahoe Community Tree and Menorah Lighting from 5 to 7pm.  This is hosted by the Lake Tahoe Visitors Authority at the Visitors Center, 3066 Lake Tahoe Blvd.  The event will feature appearances by Santa and Mrs.  Clause along with their elves.  Fee sleigh rides courtesy of Borges Sleigh Rides.  Complementary refreshments and will be provided.  Please bring canned food or a toy to benefit Christmas Cheer.  For more info call Lake Tahoe Visitors Authority at 530-544-5050.
2. Tahoe Art League Holiday Boutique from 5-7:30 pm.  This is located next to the Community Tree and Menorah Lighting.  Come in for hot cider and see the unique Holiday gifts made by local artist.

Saturday Dec 5th

1. Huge Estate Sale from 8:30-4:00.  816 Hazel Drive in South Lake Tahoe.
2. Tahoe Figure Skating Club’s Christmas on Ice at the South Lake Tahoe Ice Arena from 5-6pm.  Local figure skaters perform to holiday music.  The Lake Tahoe Elementary Choir will perform.  Call 530-416-2324 for more information.
3. Breakfast with Santa from 9-11am at the Kahle Community Center located at 236 Kingsbury Grade in Stateline.  The pancake breakfast will be prepared and served ty firefighters from the Tahoe Douglas Fire District.  Tickets are $2 and pre-registration is recommended.  Call the community center for more information 775-586-7271.
4. The South Lake Tahoe Branch Library is seeking volunteers of all ages to help make wreaths and tree ornaments for assisted care patients at Barton Hospital form 10 to noon.  1000 Rufus Allen Blvd.  Enjoy Christmas music and refreshments.  Call Jan at the library for more information 530-573-3185
5. Chamber mixer with Santa from 2-5pm.  Located at 4000 Lake Tahoe Blvd #29.  Santa will be on-hand for free photos with children.  For more information call 530-542-5060.

Hope you have a good weekend…..

Image via CrunchBase

Here are some tips to help improve your credit score. 

1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus—Experian, Equifax, and TransUnion. Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information you are being evaluated on is current and correct.

2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations will usually be done within 30 days of your request.

3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you’re struggling to catch up, contact your creditors to work out a payment schedule.

4. Increase the length of your credit history. This accounts for about 15% of your score. Don’t cancel your old card or get a lot of new ones in a short time span because this can hurt your score.

5. Keep credit card balances low. It’s a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.

6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don’t apply for new credit cards first.

7. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

8. Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

9. Beware credit-repair scams. By all means, don’t pay someone to wipe away the negative items in your file. If they don’t follow through, the damaging items will reappear in two or three months.

You may also consider talking to your lender also for other options when your credit score is not were you would like it to be.

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The California Highway Patrol is starting its annual Chips for Kids program on November 23rd.  They will be collecting food, new unwrapped toys,  and new or lightly used jackets.  The items will be donated to such local organizations as the Lake Tahoe Women’s Center, Christmas Cheer, and St.  Catholic Church.

For questins please call Officer Jeff Gartner at 530-577-1001.

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Well its that time of the year again.  The 2009 Turkey Trot will be held at Bijou Community Park on Al Tahoe Blvd on Saturday, November 21st rain or shine.  All participants are encouraged to bring one non-perishable food item to donate to Christmas Cheer.  Those of us that are 18 and older have a $2.00 entrance fee, the young ones are free.

The events are sponsored by the South Lake Tahoe Optimist Club, Tahoe Mountain Milers, and the City of South Lake Tahoe Parks and Recreation Department.

Registration starts a 10am.  Kids races start at 11am, and the adults race starts at 12 noon.  There are events for the whole family from the 25 yard dash for the 3 and 4 year olds to the 2.7 miles for the adults.

1st place is of course a turkey.  I am shooting for 2nd or 3rd however because of the pumpkin pie for those slots.  Gobble Gobble…..

For other information pleas call 542-6056.  See you there.