The El Dorado County Health and Human Services Agency’s Housing Program has received approval for $800,000 from the State’s Home Investment Partnerships Program (HOME) fund to provide low-interest rate deferred payment loans to eligible homebuyers to help with the purchase of a home in the unincorporated areas of El Dorado County. Funding for this program is provided through the California Department of Housing and Community Development HOME Program and the County’s revolving housing loan fund.

Eligible applicants must provide a down payment, the greater of $2,500 or two percent based on the purchase price of a home. Individuals must also qualify for a fixed-rate 30-year first mortgage through a commercial lender and have a total household income at or below 80% of the area median income based on household size. With a few exceptions, eligible applicants cannot have owned a home or been on title to real property within the last three years. Current annual maximum household income limits are: one person, $42,650; two persons, $48,750; three persons, $54,850; four persons, $60,900; five persons, $65,800; six persons, $70,650; seven persons, $75,550; eight persons, $80,400.

The County’s First Time Homebuyer Loan Program is designed as a gap financing program for applicants who would not qualify for a bank loan sufficient to purchase a home due to limited income. The loan program includes loan amounts up to $80,000 at three percent interest with payments deferred for 30 years. Loans are available while funding lasts to eligible buyers on a first-come, first-served basis after completing an application process.

For more information about this program, visit the El Dorado County web site at www.edcgov.us or call the El Dorado County Housing, Community and Economic Development Block Grant Programs at (530) 642-4864.

NAR’s 2012 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2011, shows investment-home sales surged an extraordinary 64.5 percent to 1.23 million last year from 749,000 in 2010. Vacation-home sales rose 7.0 percent to 502,000 in 2011 from 469,000 in 2010. Owner-occupied purchases fell 15.5 percent to 2.78 million.

Vacation-home sales accounted for 11 percent of all transactions last year, up from 10 percent in 2010, while the portion of investment sales jumped to 27 percent in 2011 from 17 percent in 2010.
NAR Chief Economist Lawrence Yun says investors with cash took advantage of market conditions in 2011. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he says. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”

Yun says the shift in investment buyer patterns in 2011 shows the market, for the large part, is able to absorb foreclosures hitting the market. “Small-time investors are helping the market heal since REO (bank real estate owned) inventory is not lingering for an extended period. Any government program to sell REO inventory in bulk to large institutional companies should be limited to small geographic areas. Even where alternatives are needed, it’s best to rely on the expertise of local businesses, nonprofit organizations and government,” he says.

All-cash purchases have become fairly common in the investment- and vacation-home market during recent years: 49 percent of investment buyers paid cash in 2011, as did 42 percent of vacation-home buyers. Half of all investment home purchases in 2011 were distressed homes, as were 39 percent of vacation homes.

“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” Yun says. Of buyers who financed their purchase with a mortgage, large downpayments were typical. The median downpayment for both investment- and vacation-home buyers in 2011 was 27 percent.

“Given the tight credit in recent years, many would-be normal home buyers for owner occupancy declined,” Yun says.

The median investment-home price was $100,000 in 2011, up 6.4 percent from $94,000 in 2010, while the median vacation-home price was $121,300, down 19.1 percent from $150,000 in 2010.

Investment-home buyers in 2011 had a median age of 50, earned $86,100 and bought a home that was relatively close to their primary residence—a median distance of 25 miles, although 30 percent were more than 100 miles away.

“The share of investment buyers who flipped property remained low in 2011, and many of those homes likely were renovated before reselling,” Yun says. Five percent of homes purchased by investment buyers last year have already been resold, up from 2 percent in 2010. The typical investment buyer plans to hold the property for a median of 5 years, down from 10 years for buyers in 2010.

The typical vacation-home buyer was 50 years old, had a median household income of $88,600 and purchased a property that was a median distance of 305 miles from the primary residence; 35 percent of vacation homes were within 100 miles and 37 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years.

Lifestyle factors have consistently been the primary motivation for vacation-home buyers, while the desire for rental income drives investment purchases. Vacation homes purchased last year were more likely to be in suburban or rural areas; investment homes were concentrated in suburban locations.

Eighty-two percent of vacation-home buyers said the primary reason for buying was to use the property themselves for vacations, or as a family retreat. Thirty percent plan to use the property as a primary residence in the future, and only 22 percent plan to rent to others.

Half of investment buyers said they purchased primarily to generate rental income, and 34 percent wanted to diversify their investments or saw a good investment opportunity.

Sixteen percent of vacation buyers and 14 percent of investment buyers purchased the property for a family member, friend or relative to use. In many cases the home is intended for a son or daughter to use while attending school.

Forty-two percent of vacation homes purchased last year were in the South, 30 percent in the West, 15 percent in the Northeast and 12 percent in the Midwest; 1 percent were located outside of the U.S.

Forty-four percent of investment properties were in the South, 23 percent in the West, 17 percent in the Midwest and 15 percent in the Northeast.

Eight out of 10 second-home buyers said it was a good time to buy. Nearly half of investment buyers said they were likely to purchase another property within two years, as did one-third of vacation-home buyers.

Currently, 42.1 million people in the U.S. are ages 50-59—a group that has dominated second-home sales since the middle part of the past decade and established records. An additional 43.5 million people are 40-49 years old, while another 40.2 million are 30-39.

“Given that the number of people who are in their 40s is somewhat larger than the 50-somethings, the long-term demographic demand for purchasing vacation homes is favorable because these younger households are likely to enter the market as their desire for these kinds of properties grows, and individual circumstances allow,” Yun says.

NAR’s analysis of U.S. Census Bureau data shows there are 8.0 million vacation homes and 42.8 million investment units in the U.S., compared with 75.3 million owner-occupied homes.

NAR’s 2012 Investment and Vacation Home Buyers Survey, conducted in March 2012, includes answers from 2,241 usable responses about home purchases during 2011. The survey controlled for age and income, based on information from the larger 2011 NAR Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents.

Provided by National Association of Realtors March 29, 2012

Excerpt from Tahoe Daily Tribune 2/22/12

SOUTH LAKE TAHOE, Calif. - Vail Resorts Inc. announced today that it has agreed to buy Kirkwood Mountain Resort for about $18 million.
According to a press release, Vail is purchasing the ski resort, as well as selected base village commercial development opportunities in the Mountain Village at Kirkwood. Kirkwood’s shareholders will retain 100 percent of the remaining real estate development parcels in the Kirkwood base area including the single family subdivisions in The Palisades and Martin Point and the future village development projects in East Village and Timber Creek, as well as an economic interest in Vail’s village project, a press release from Kirkwood stated.
Vail Resorts also announced that, effective immediately, Heavenly and Northstar pass holders will have access to Kirkwood and Kirkwood pass holders will be able to ski and ride Heavenly and Northstar.
“We are thrilled to welcome Kirkwood into our family as our seventh world-class mountain resort. Kirkwood offers some of the most extraordinary ski terrain found anywhere in North America with high alpine trails and the most annual average snowfall in Lake Tahoe. Kirkwood represents skiing and riding at its purest, something we intend to retain and protect long into the future,” Rob Katz, chairman and chief executive officer of Vail Resorts, stated in a press release.
According to Michael Dalzell, vice president of sales and marketing for Kirkwood Mountain Resort, the deal has been in the works for a few months now and is good news for the business community.

Mar 6, 2012
311 with Special Guests The Dirty Heads
MontBleu Resort Casino & Spa

Mar 17-18, 2012
Tahoe South Winter Snow Blast 2012
Heavenly, Harrah’s and Harveys Lake Tahoe

Mar 17, 2012
Drive By Truckers
Harrah’s Lake Tahoe

Mar 22, 2012
George Clinton & Parliament Funkadelics
MontBleu Resort Casino & Spa

Mar 24, 2012
Actor Comedian Rob Schneider
MontBleu Resort Casino & Spa

Mar 25, 2012
Something Blue Lake Tahoe Bridal Show
Horizon Casino Resort Ballroom