South Lake Tahoe Residential Sales as of July 1st, 2017

Here Are 5 Facts 
 South Lake Tahoe Residential Sales as of July 1st, 2017 
 
  • Average Home Values were up 14.5% compared to last year with an average price of $510,491
  • # of Sales were down from 773 to 724
  • # of Homes on the market are down 20.6% from 267 to 212
  • Average list to sale range is 97.8%.
  • Month supply of homes on the market is 3.4 compared to 4.4 last year. Under 4 represents a sellers’s market. 
 
The above information is based on the previous 12 month averages (The method used by CAR).
 

Americans Think Buying a Home Is a Good Financial Decision

 

This is an interesting article provided by the National Association of Realtors.

NAR’s twelfth Housing Pulse Survey shows a vast majority of Americans believe that buying a home is a solid financial decision, and most believe that homeownership helps create safe, secure, and stable environments.

The survey, which measures consumers’ attitudes and concerns about housing issues, found that building equity and preparing for retirement are the top financial reasons for buying a home. Yet six in 10 say that they are concerned about the cost to buy a home or high rent prices in their area.

The telephone survey of 1,500 adults nationwide in the 25 most populous metropolitan statistical areas was conducted for NAR by American Strategies and Myers Research & Strategic Services for NAR”s Housing Opportunity Program.

Some key findings from the year’s survey include:

  • Americans overwhelmingly believe that buying a home is a good financial decision; 84 percent hold that view.
  • Nationally, 44 percent categorize the lack of available housing that is affordable as a very big or fairly big problem.
  • Family and friends, REALTORS®, and banks top list of trusted sources when it comes to buying a home or property.

1495 Ormsby Dr. South Lake Tahoe, CA 96150

1495 Ormsby Drive 3D Tour

Situated on an oversized, flat parcel, this successful vacation rental is nestled amongst the pines on a quiet street across from the meadow. Features include an open floor plan with vaulted ceilings, quartz countertops, oiled bronze fixtures, porcelain and travertine tile floor, laminate plank flooring, newer carpet, and interior/exterior paint. The main level of the house features an open floor plan, with kitchen, dining area, living area, two guest bedrooms, master bedroom, two bathrooms, and a laundry area. Upstairs is a large family room currently set up as a game room. Centrally located with easy access to casinos, shopping, restaurants, hiking, biking, cross country skiing and only a five minute drive to Heavenly Ski Resort.

 

 

 

 

 

 

 

 

Investment Home Sales Dominate Second Home Market in 2016

I wanted to share an interesting article provided by RISmedia
Investment home sales dominated the second home market in 2016, off the charts by 4.5 percent to total 1.14 million, according to the National Association of REALTORS® (NAR) recently released 2017 Investment and Vacation Home Buyers Survey-but vacation home purchases plunged, down 21.6 percent to a total 721,000.

NAR Chief Economist Lawrence Yun attributes the vacating of vacation home sales to low supply and unaffordability-the same issues plaguing the housing market overall.

“In several markets in the South and West-the two most popular destinations for vacation buyers-home prices have soared in recent years because substantial buyer demand from strong job growth continues to outstrip the supply of homes for sale,” says Yun. “With fewer bargain-priced properties to choose from and a growing number of traditional buyers, finding a home for vacation purposes became more difficult and less affordable last year.”

Vacation home sales, according to Yun, are now 36 percent below their 2014 peak. The median vacation home price was $200,000, a 4.2 percent increase from 2015, with the share of all-cash purchases down to 28 percent from 38 percent in 2015. Vacation home sales totaled 12 percent of all transactions in 2016—the lowest share since 2012.

The median investment home price, to compare, was $155,000, an 8 percent increase from 2015, with the share of all-cash purchases down to 35 percent from 39 percent in 2015. Investment home sales totaled 19 percent of all transactions in 2016, unchanged.

“Sales to individual investors reached their highest level since 2012 (1.20 million) as investors took advantage of record low mortgage rates and recognized the sizeable demand for renting in their market as renters struggle to become homeowners,” Yun says. “The ability to generate rental income or remodel a home to put back on a market with tight inventory is giving investors increased confidence in their ability to see strong returns in their home purchase.”

What motivated investment home- and vacation homebuyers? According to the survey, 42 percent of investors bought a property with the purpose of generating rental income, and 16 percent of investors bought for potential price appreciation. Forty-two percent of vacation homebuyers bought for “a family retreat” or vacation use, and 18 percent bought for retirement.

Many investment- and vacation homebuyers, in addition, rented their property short-term—less than 30 days.

NEW FHA LOAN LIMITS MAY HELP YOU BUY A HOME

Just before Thanksgiving, the Federal Housing Finance Agency released the conforming loan limits change for 2017. This change resulted in higher loan limits beginning in January for many counties across the country. The FHA has now followed suit. Here is what to know about the FHA Loan Limits changes.The Federal Housing Administration is insuring loans for people looking to purchase a home or refinance a home with a little equity. The program insures loans up to the maximum loan limit in the county in which the property is located.

Using Sonoma County, California, as an example, the maximum loan limit for 2016 was $554,600. This number is rising to $595,600 for 2017. This represents a significant change for people looking to purchase a home who have good income, sufficient credit, and a healthy debt-to-income ratio who are otherwise tight on cash to close. This applies to a home buyer by allowing them to purchase up to $615,000 in the county of Sonoma with just 3.5% down. This change represents bigger borrowing power in nearly every county across the United States.

The fact that both FHA and the Conforming loan balances are now higher in nearly every county nationwide represents a growing trend of a more exuberant economy. Higher loan balance limits can mean the difference between renting and owning for many. This is particularly beneficial because the FHA Loan, while allowing a low down payment, is also very flexible in unique or difficult circumstances consumers sometimes are faced with.

Some of the things included are:

  • Debt-to-income ratios as high as 55%
  • Credit scores as low 580 for loans up to $424,100 and 640 score for loans exceeding $424,100
  • Waiting time on previous short sale: three years
  • Waiting time on previous foreclosure: three years
  • Waiting time on previous Chapter 7 Bankruptcy: two years
  • Will allow a borrower to refinance a second mortgage up to 96.5 loan-to-value

If you are looking to buy a home in 2017, an FHA loan could be a favorable vehicle to help get you there. An experienced mortgage lender who specializes in FHA loans may be the best place to begin looking.

Keep in mind that, before you begin the lending process—or even start looking for a home—it’s a good idea to check your credit scores to see where you stand. It will let you know exactly how much loan you’ll qualify for. Also, it’s a good time to pull your credit reports to ensure there aren’t any mistakes, which could hurt you.

Provided by C.A.R.

 

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