5 Reasons It’ll Pay to Sell Your Home Early in 2018

I wanted to share this interesting article provided by Realtor.com about the reasons why it’ll pay to sell your home early in 2018.

It’s been nearly a decade since the Great Recession delivered the worst housing crash in modern memory. But these days, the fallout feels squarely in the rearview mirror. Markets have bounced back with fervor, and confidence is skyrocketing: From Charlotte, NC, to Stockton, CA—and everywhere between- homes are flying off the market at record prices, and buyers are still clamoring to get in the game.

One thing is clear: It’s a great time to be a seller.

“We’ve seen two or three years of what could be considered unsustainable levels of price appreciation, as well as an inventory shortage that resulted in a record low number of homes for sale across the country,” says Javier Vivas, director of economic research for  realtor.com®.

In other words: Today’s buyers are exhausted. And in many cases that means they’re willing to sacrifice to get a toehold in the market.

Sounds like the stuff of seller’s dreams, right? But know this: If you plan to sell in 2018—and you want to unload your home quickly and for maximum money—your window of opportunity may be rapidly narrowing. Here’s why you should get moving ASAP.

1. Rates are still historically low, drawing buyers into the market

We may not be enjoying the rock-bottom interest rates of yore, but by historical standards, today’s 30-year mortgage rates—hovering just above 4%—are still low. And experts agree mortgage credit will remain relatively cheap for most of the year.

That means the getting’s still good for buyers—and, subsequently, for sellers looking to unload their homes.

But rates are on the rise, and it’s been widely predicted that they’ll reach 5% before year’s end. Buyers know that the longer they wait to buy, the more expensive it will be.

Roughly translated, that means you’d be wise to list your home earlier in the year, before more rate hikes kick in. Not only will you capture the market of buyers scurrying to close a deal, but if you’re buying after you sell, you’ll also benefit from those lower rates.

2. Inventory remains tight—and demand high

Simply put, there are more buyers than available homes—particularly in red-hot markets where land is scarce and it isn’t cheap to build.

And the housing shortage will likely get worse before it gets better: Realtor.com data predict inventory will remain tight in the first part of this year, reaching a 4% year-over-year decline by March.

Sellers, that means this is your opportunity to be wooed. Buyers, their choices limited, are going to great lengths (and making some major concessions) to win the house, says Katie Griswold, a Realtor® with Pacific Sotheby’s in Southern California.

“We’re in a very favorable seller’s market,” she says. “We’re seeing bidding wars—which push up prices—and buyers are submitting offers with very pro-seller terms, like forgoing the repair request or waiving the appraisal contingency.”

And cash investors are in the mix, too, accounting for 22% of all home sales transactions in November 2017 (up from 20% in October), according to the National Association of Realtors®.

Those cash buyers are snapping up homes in an already tight market and keeping some first-time buyers at bay (sorry, buyers!). But if you’re selling, you stand a better shot at an all-cash offer—one you just might be crazy to refuse.

Of course, there’s a catch: Inventory levels are predicted to begin rising in the fourth quarter, marking the first inventory gain since 2015 and setting the stage for more dramatic housing gains to come. So if you’re thinking of selling, start preparing now in order to walk away with a sweet paycheck.

3. Home prices are still increasing

From coast to coast, home prices continue to rise—which translates to more money in your pocket when you sell.

But the gains are predicted to be more moderate than in years past. Realtor.com data suggest a 3.2% increase year over year, after finishing 2017 with a 5.5% year-over-year increase.

Bottom line: You still stand to make a pretty profit if you sell this year, but the earlier you can list, the better off you’ll be.

4. People have more money in their pocket

Record levels of consumer confidence, low unemployment, and stock market surges are setting the stage for high home buyer turnout in 2018. For the first time since the 1960s, the Fed has projected that the unemployment rate will drop below 4%, and the domestic stock market is enjoying a nearly unprecedented rally.

The housing market is already reflecting this boom: Existing-home sales soared 5.6% in November 2017 (the most recent month for which data are available) and reached their strongest pace in almost 11 years, according to the NAR.

“Incomes are growing and people are finding better and more stable jobs,” Vivas says. Buyers “are feeling pretty good about (their) finances.”

And thanks to the GOP tax legislation, which nearly doubles the standard deduction, we’ll see fewer people itemizing, says National Association of Home Builders Chief Economist Robert Dietz.

“The income effect of that is that most people are getting a tax cut—which should help (buyer) demand,” Dietz says.

All of these factors combined mean more buyers could be on the hunt, with more money in their pockets to shell out on a home for sale—possibly yours!

5. Millennials are ready to commit

Millennials, often crippled by student debt, have been especially hampered by rising interest rates and high home prices.

But the aforementioned conditions are ripe in 2018 for these first-time buyers to take the plunge, and experts predict that millennials will make up a vital part of the buyer pool over the coming year: Millennials could account for 43% of home buyers taking out a mortgage in 2018 (a 3% year-over-year increase), according to realtor.com data.

“As people move into their 30s, they’re looking to move from renting to homeownership,” Dietz says. “And we predict that trend will continue even more this year.”

More home buyers flooding the market can only mean good things for sellers—at all price points.

 
 

“We’ve seen two or three years of what could be considered unsustainable levels of price appreciation, as well as an inventory shortage that resulted in a record low number of homes for sale across the country,” says Javier Vivas, director of economic research for realtor.com®.

10 Housing Markets That Will Rule 2018

An interesting article from Realtor. com about the housing markets that are expected to be hot in 2018

 

The New Gold Standard: 10 Housing Markets That Will Rule 2018

Everyone loves predicting the future. What awesome surprises will the coming year hold for us in high-profile political scandals or wildly inappropriate workplace behavior? Who’s going to win the Oscars, the Super Bowl, or Miss America (go, Connecticut!). When on earth is the final season of “Game of Thrones” going to start, anyway? But truth be told, we’ve got all of this soothsaying beat by a mile: We’re setting our sights on prognosticating which housing markets will soar to new heights in 2018.

Because you care! Americans breathlessly track the up-and-down trajectory of the nation’s housing markets these days, the way previous generations obsessed over stock prices, NBA rankings, or Furby sales. Give the credit (or blame) to skittishness over the last decade’s housing crash, or the roller-coaster ride of home pricing, or maybe even the ascension of HGTV flipping shows. But real estate matters: The fortunes of cities rise and fall, sometimes quickly, other times in agonizing slo-mo. And the last thing you want to do with the biggest investment of your life is buy into a housing market that is heading in the wrong direction.

What are the hot markets where you can still afford to buy? Which are ones where home prices are almost certain to appreciate? The ones with burgeoning economies and lots of job growth? The ones where you actually want to live?

To determine our predictions for the best real estate markets of 2018, realtor.com’s® economic data team took a look at the number of sales of existing homes and their prices, along with the amount of new home construction in the 100 largest markets. We also analyzed the local economies of each area, along with population trends, unemployment rates, median household incomes, and other factors.

“People are going to continue to seek out pockets of affordability that remain in the market,” says Danielle Hale, chief economist of realtor.com. “A lot of these places are more affordable than surrounding areas, yet still have strong economies. Even though prices are expected to grow, most of these markets will still remain relatively affordable in 2018.”

So which will be the hottest markets in 2018? Be prepared for some surprises.

Top 10 Housing Markets for 2018
Top 10 Housing Markets for 2018Tony Frenzel

1. Las Vegas, NV

Median home price: $285,045
Predicted sales growth: 4.9%
Predicted price growth: 6.9%

Residential Las Vegas neighborhood in view of the Strip
Residential Las Vegas neighborhood in view of the Striptrekandshoot/iStock

The future of Las Vegas is eye-searingly bright—and it’s not just because of all those lights on the Strip.

The economy of the once-downtrodden Sin City is expected to grow about 8.7% in 2018—compared with 6.4% for the rest of the top 100 markets, according to realtor.com. That means a lot of people moving in, moving up, and looking for places to live.

Things weren’t always so rosy. Vegas was devastated by the financial crisis of the late 2000s and the wave of foreclosures that followed.

“We like to say we were ground zero for the Great Recession: We fell further than many other metros,” says Stephen Miller, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas. “So we had more ground to cover to catch up.”

One of the things drawing folks to settle down and stay in Vegas, long after their 72-hour bender has become a distant memory, is the city’s still striking affordability.

“Our [home] prices are lower than nearly every major Western metro area,” Miller says. “People in California are retiring and selling their houses and moving [in]. … They want a lower cost of living.”

With the influx of new residents and the return of buyers who lost their homes to foreclosures, well-priced homes in good neighborhoods are practically flying off the market, says local real estate broker Bryan Kyle of First Serve Realty. Low interest rates are also luring more buyers.

“What keeps this market as hot as it is right now is the lack of inventory,” Kyle says. Those shortages may be exacerbated by still-underwater homeowners reluctant to plant a For Sale sign in their yard until their equity recovers. But there are fewer of those properties today as prices continue to nudge up.

2. Dallas, TX

Median home price: $339,300
Predicted sales growth: 6%
Predicted price growth: 5.6%

Apartment complex in Dallas
Apartment complex in DallasHIgs2006/iStock

This oil town is pumping, thanks to a steady flow of companies relocating, expanding, or opening up in the region. Those firms are attracted to the low taxes and cost of living. And that’s brought busloads and planes filled with new residents searching for For Sale signs.

For example, Toyota recently moved its North American headquarters to nearby Plano—and asked about 4,000 of its California, Kentucky, and New York employees to come along for the ride. Those transplants and their families all need roofs over their heads.

“Most of the houses that are being sold right now are new-built, and the builders can’t keep up,” says Yolanda Dittmar, a local real estate broker at Dittmar Realty. With the rising prices, existing homeowners are reluctant to part with their abodes and trade up.

“It’s going to cost them a lot more money to sell their house and buy another in the same area they’re living in,” she says.

Existing homes in good shape in good neighborhoods will set buyers back about $500,000 in the city limits, she says. New homes run between $700,000 and $2 million. In the suburbs, they’re a bit less, about $350,000 for an existing abode and over $400,000 for a new one.

However, prices are beginning to dip about 10% to 15% for a mid-priced residence, she says. Simple reason: Some of these properties may have been overpriced.

3. Deltona, FL

Median home price: $275,050
Predicted sales growth: 5.5%
Predicted price growth: 6%

Deltona’s location, sandwiched about 30 minutes between Orlando and Daytona Beach, is tough to beat.

In fact, many folks work in Orlando and commute from Deltona, where prices are still significantly cheaper. The median home price in Deltona’s city limits (as opposed to the greater metro area referenced by the figure above) is $159,000, according to realtor.com data, vs. $269,000 in Orlando.

The city is still clawing its way back from the recession. The metro’s economy is expected to grow about 8.3%, while employment is to increase by about 2.9%, according to realtor.com.

Investors have helped boost this market. When prices were their lowest, they scooped up whatever single-family houses they could get deals on, fixed and flipped them, or rented them out. More of those redone rentals are now going on the market, says Stephanie Agosto, a local real estate agent at NextHome Professionals. Those homes, with their many renovations, are selling at a premium.

But it’s only in the past year or so that Agosto has seen prices begin to rise.

“You can still get more for your money in Deltona,” she says.

4. Stockton, CA

Median home price: $385,050
Predicted sales growth: 4.6%
Predicted price growth: 6.4%

Waterfront in Stockton, CA
Waterfront in Stockton, CAtntemerson/iStock

Crime-plagued Stockton, far from the California coast, doesn’t exactly have the best rep. It’s not known for being an economic powerhouse. But it’s becoming the place to be.

Buyers can get score a home in Stockton proper for a median $285,000—less than a quarter of what they’d pay in San Francisco, about an hour-and-a-half away. (The median price in SF is a head-spinning $1.3 nmillion.) Priced-out Bay Area denizens are moving in for deals like this four-bedroom, two-bathroom fixer-upper for $250,000.

“Stockton is going through a revitalization,” says Jerry Patterson, a real estate at Cornerstone Real Estate. Many of the downtown’s historic buildings are being restored, and new neighborhoods are in development. “Stockton has a lot to offer, and it’s very reasonably priced.”

The area is also helped by its proximity to vineyards, near Lodi. Homes typically receive multiple offers, and the best of the bunch sell within just a few days.

“It’s pretty competitive,” Patterson says.

5. Lakeland, FL

Median home price: $224,950
Predicted sales growth: 3%
Predicted price growth: 7%

View of downtown Lakeland, FL
View of downtown Lakeland, FLRobHainer/iStock

Like Deltona, Lakeland’s allure lies in its location. It’s about 40 minutes east of Tampa and an hour southwest of Orlando, making it a desirable place to be for cost-conscious commuters.

The city’s now growing, with a downtown revival and new subdivisions going up outside of the city. What a difference a few years can make: Lakeland, like many other metros on this list, was clobbered by the financial crisis.

“During the recession, there were a lot of [vacant storefronts,]” says Michelle Schaal, a local real estate agent at Keller Williams Realty. But now, she adds, the city is “starting to revitalize a lot of the old buildings on the major thoroughfares. It’s opening it up for more small businesses to move in.”

“We have a lot of fine dining restaurants, things that didn’t exist before,” she says.

These new amenities, along with lower prices, have been a draw for home buyers. In Lakeland’s city limits, the median home price is $180,000. There are also down payment-assistance programs in the area for qualified buyers that have helped to give the market a boost.

“Mostly, it’s people transferring because of job opportunities and downsizing,” she says of her clients. “Millennials are [also] starting to purchase in a big way.”

6. Salt Lake City, UT

Median home price: $360,828
Predicted sales growth: 4.6%
Predicted price growth: 4.5%

Residential neighborhood in Salt Lake City
Residential neighborhood in Salt Lake CityfotoVoyager/iStock

Salt Lake City is so hot that potential home buyers will likely need to duke it out with competitors.

Buyers in the city, which entered the global spotlight in 2002 when it hosted the Olympic Games, are now offering 20% to 25% above the asking price, says Kenny Parcell, real estate broker at Equity Real Estate Utah.

“You’re seeing people who are tired of paying higher taxes, or they’re tired of dealing with traffic and congestion [elsewhere]. They can sell their house in Silicon Valley and get four times the house in Salt Lake or the surrounding suburbs,” Parcell says. “We have a lot of corporations coming in, which means good-paying jobs, a good tax base, and good schools.”

Many of his clients are college students who stick around after graduation or who move back to the area after working elsewhere for a few years.

7. Charlotte, NC

Median home price: $325.045
Predicted sales growth: 6%
Predicted price growth: 3%

Similar to Dallas, much of the boom in Charlotte’s housing market is thanks to all of the out-of-staters moving in. Many of them are relocating for work, as Charlotte is a big financial hub. Others are coming there to retire, attracted by the low cost of living.

“A lot of people are wanting to move here,” says Scott Hartis, a local real estate broker with Keller Williams Realty. “We have a great climate, strong business tax incentives.”

Employment is expected to grow about 2.5% in 2018, while the population will shoot up 2.2%, predicts realtor.com’s economic team. Continued growth has made buying a home challenging.

“Sometimes properties are going under contract within a matter of hours, with multiple offers,” Harris says.

8. Colorado Springs, CO

Median home price: $375,000
Predicted sales growth: 3.1%
Predicted price growth: 5.7%

Residential area with view of Garden of the Gods in Colorado Springs
Residential area with view of Garden of the Gods in Colorado SpringsSWKrullImaging/iStock

Home prices aren’t the only thing in Colorado Springs getting higher and higher. The entire state’s economy has been getting a buzz since Colorado legalized recreational marijuana in 2012. And the prices show no signs of coming down.

“I’ve met a lot of people who moved here for the marijuana,” says local real estate agent Monique Allison-Vollmer of Williams Partners. “That’s put our rental market in demand too.”

The city’s proximity to Denver, about 70 miles away, has also been a boon to its economy. Folks can work in the state capital and live in Colorado Springs for a fraction of the cost. The median price in the Denver area is $511,200—about 36% more. Builders have been capitalizing on that.

“There’s a lot of new construction,” says Allison-Vollmer. Over the summer, she would receive four to six offers per property, with offers promising $10,000 to $25,000 over the asking price. But it’s slowed down considerably since then, with prices falling just a little.

“People only make so much money,” she says.

9. Nashville, TN

Median home price: $358,501
Predicted sales growth: 1%
Predicted price growth: 7.7%

Things are looking up in Nashville.
Things are looking up in Nashville.JodiJacobson/iStock

The headlines coming out of Nashville these days have little to do with which country music star dumped whom. The area has become the “It” city for the far-less famous as of late. And that’s pushing home prices to new heights.

List prices skyrocketed 89% in the last five years. Prices jumped 10.8% just this year. And the population is also rising, as more folks are moving in.

“It’s crazy,” says Lisa Peebles-Chagnon, an affiliate broker at Benchmark Realty in Nashville. Single-family homes in the best suburbs of Nashville can go for multiple offers above asking—”overnight,” she says. But homes with ambitiously high price tags are sitting on the market longer.

“We have a lot of cranes dotting the landscape. We’re joking that it’s the state bird of Tennessee,” Peebles-Chagnon says of all of the city’s new construction.

10. Tulsa, OK

Median home price: $199,586
Predicted sales growth: 7.5%
Predicted price growth: 1%

2018 looks bright for Tulsa, OK.
2018 looks bright for Tulsa, OK.digidreamgrafix/iStock

Those who dream of owning a home but have limited means shouldn’t overlook Tulsa. The Oklahoma city is the most affordable on our list, with a median price well below the nearly $275,000 national average.

Buyers can score gems like this three-bedroom, 1.5 bathroom, single-family home for a whopping … $99,900. Or they can snap up this three-bedroom, two-bathroom condo for just $72,000.

The local economy is expected to increase by an impressive 7%, but employment will only rise by a measly 0.2%, according to realtor.com predictions. Rising sale prices, growing about 10.3% in the first eight months of this year, are what helped to put this metro on the list.

“It’s just a good place to live, with low crime, low cost of living, steady job availability,” says Jake Salyer, a local real estate agent with Keller Williams Preferred.

Most of his clients are older millennials and Generation Xers with families buying up homes, particularly in the suburbs. Folks can score a single-family house in a nice subdivision for far less than $250,000—without having to contend with bidding wars and multiple offers well over asking.

“It’s simply not that kind of market,” Salyer says.

 
Clare Trapasso is the senior news editor of realtor.com and an adjunct journalism professor.
 

5 Reasons It’ll Pay to Sell Your Home Early in 2018

I found this interesting article from Realtor.com 

It’s been nearly a decade since the Great Recession delivered the worst housing crash in modern memory. But these days, the fallout feels squarely in the rearview mirror. Markets have bounced back with fervor, and confidence is skyrocketing: From Charlotte, NC, to Stockton, CA—and everywhere in between- homes are flying off the market at record prices, and buyers are still clamoring to get in the game.

One thing is clear: It’s a great time to be a seller.

“We’ve seen two or three years of what could be considered unsustainable levels of price appreciation, as well as an inventory shortage that resulted in a record low number of homes for sale across the country,” says Javier Vivas, director of economic research for realtor.com®.

In other words: Today’s buyers are exhausted. And in many cases that means they’re willing to sacrifice to get a toehold in the market.

 

Sounds like the stuff of seller’s dreams, right? But know this: If you plan to sell in 2018—and you want to unload your home quickly and for maximum money—your window of opportunity may be rapidly narrowing. Here’s why you should get moving ASAP.

1. Rates are still historically low, drawing buyers into the market

We may not be enjoying the rock-bottom interest rates of yore, but by historical standards, today’s 30-year mortgage rates—hovering just above 4%—are still low. And experts agree mortgage credit will remain relatively cheap for most of the year.

That means the getting’s still good for buyers—and, subsequently, for sellers looking to unload their homes.

But rates are on the rise, and it’s been widely predicted that they’ll reach 5% before year’s end. Buyers know that the longer they wait to buy, the more expensive it will be.

Roughly translated, that means you’d be wise to list your home earlier in the year, before more rate hikes kick in. Not only will you capture the market of buyers scurrying to close a deal, but if you’re buying after you sell, you’ll also benefit from those lower rates.

2. Inventory remains tight—and demand high

Simply put, there are more buyers than available homes—particularly in red-hot markets where land is scarce and it isn’t cheap to build.

And the housing shortage will likely get worse before it gets better: Realtor.com data predict inventory will remain tight in the first part of this year, reaching a 4% year-over-year decline by March.

Sellers, that means this is your opportunity to be wooed. Buyers, their choices limited, are going to great lengths (and making some major concessions) to win the house, says Katie Griswold, a Realtor® with Pacific Sotheby’s in Southern California.

“We’re in a very favorable seller’s market,” she says. “We’re seeing bidding wars—which push up prices—and buyers are submitting offers with very pro-seller terms, like forgoing the repair request or waiving the appraisal contingency.”

And cash investors are in the mix, too, accounting for 22% of all home sales transactions in November 2017 (up from 20% in October), according to the National Association of Realtors®.

Those cash buyers are snapping up homes in an already tight market and keeping some first-time buyers at bay (sorry, buyers!). But if you’re selling, you stand a better shot at an all-cash offer—one you just might be crazy to refuse.

Of course, there’s a catch: Inventory levels are predicted to begin rising in the fourth quarter, marking the first inventory gain since 2015 and setting the stage for more dramatic housing gains to come. So if you’re thinking of selling, start preparing now in order to walk away with a sweet paycheck.

3. Home prices are still increasing

From coast to coast, home prices continue to rise—which translates to more money in your pocket when you sell.

But the gains are predicted to be more moderate than in years past. Realtor.com data suggest a 3.2% increase year over year, after finishing 2017 with a 5.5% year-over-year increase.

Bottom line: You still stand to make a pretty profit if you sell this year, but the earlier you can list, the better off you’ll be.

4. People have more money in their pocket

Record levels of consumer confidence, low unemployment, and stock market surges are setting the stage for high home buyer turnout in 2018. For the first time since the 1960s, the Fed has projected that the unemployment rate will drop below 4%, and the domestic stock market is enjoying a nearly unprecedented rally.

The housing market is already reflecting this boom: Existing-home sales soared 5.6% in November 2017 (the most recent month for which data are available) and reached their strongest pace in almost 11 years, according to the NAR.

“Incomes are growing and people are finding better and more stable jobs,” Vivas says. Buyers “are feeling pretty good about (their) finances.”

And thanks to the GOP tax legislation, which nearly doubles the standard deduction, we’ll see fewer people itemizing, says National Association of Home Builders Chief Economist Robert Dietz.

“The income effect of that is that most people are getting a tax cut—which should help (buyer) demand,” Dietz says.

All of these factors combined mean more buyers could be on the hunt, with more money in their pockets to shell out on a home for sale—possibly yours!

5. Millennials are ready to commit

Millennials, often crippled by student debt, have been especially hampered by rising interest rates and high home prices.

But the aforementioned conditions are ripe in 2018 for these first-time buyers to take the plunge, and experts predict that millennials will make up a vital part of the buyer pool over the coming year: Millennials could account for 43% of home buyers taking out a mortgage in 2018 (a 3% year-over-year increase), according to realtor.com data.

“As people move into their 30s, they’re looking to move from renting to homeownership,” Dietz says. “And we predict that trend will continue even more this year.”

More home buyers flooding the market can only mean good things for sellers—at all price points.

California Real Estate Market Update

Here are few interesting facts about the California Real Estate Market provided by C.A.R. ( California Association of Realtors)
 
  • California: $546,820
  • Calif. highest median home price by region/county: San Mateo, $1,486,000
  • Calif. lowest median home price by region/county: Lassen, $189,000

Pending Home Sales Index declined 2.6 percent from 119.1 in October 2016 to 116.0 in October 2017. 

Week ending 12/21/2017 (Source: Freddie Mac)

  • 30 year fixed: 3.94% fees/points: 0.5%
  • 15-year fixed: 3.38% fees/points: 0.5%

Provided

The Tax Reform Bill… What it could mean for Second Home Ownership

 

If you have been thinking of buying South Lake Tahoe real estate as a second home, you may be wondering how the new tax reform bill could impact your ability to deduct the mortgage interest. The deductions are changing this year. This tax bill will cap interest deductions at $750,000. What does this mean? If you already have a $750,000 mortgage and plan to buy, you will not be able to deduct the interest on that loan. If your loan is less, you would have whatever additional debt that is left over that would be fully deductible. For example, if you have a $450,000 mortgage, you would have another $300,000 that would be deductible. Under the current tax rules, about 44% of homes are worth enough for homeowners to take advantage of the mortgage interest deduction when expenses are itemized. Experts forecast that the portion of eligible homes would decrease by 14.4% under the new proposed tax law. Especially since the standard deduction is nearly doubled from existing amounts.

South Lake Tahoe real estate buyers should also keep in mind that a result of this legislation may drive down the prices on South Lake Tahoe homes for sale. In fact, some expect the second home markets to be impacted quite a bit. Additionally, the coastal markets that are known for being expensive are expected to see these impacts whereas other markets could remain stable. Markets that are expected to have the most change in value are the ones where residents are likely to use the mortgage interest deduction.

Of course, buyers should not base their decision for purchasing additional homes for sale in South Lake Tahoe solely the taxes. The real criteria you should pay attention to is outlined below.

Can you afford it?

Owning homes for sale in South Lake Tahoe goes beyond just paying a mortgage. There are other costs associated with owning more than one home.  There are maintenance costs, insurance, utilites and  furnishing. Owning South Lake Tahoe real estate is a great investment, but you aren’t financially done once you get the loan under wraps. It isn’t just the house itself, it is the stuff that goes into the house and the needs that keep it functional that also cost. You also have to be aware that some neighborhoods have HOA’s or community fees for certain amenities. Second homes are generally located in a vacation/resort area atmosphere. These usually tend to cost a little more depending on where your main residence is located and what areas you look in. If you are coming from the Bay area where the average sold price is over 1 million, homes for sale in South Lake Tahoe probably seem like a great deal. With an average sold price of just under $520,000, you are able to purchase a very nice property. If you live in a small town where the average sold price is in the $200,000’s then South Lake Tahoe real estate will obviously seem expensive.

Understand the rules for how you use the property

The IRS defines the type of second property. Currently, if you use a second property for more than 14 days out of the year, it is considered a personal residence and not a rental property. If you mix it up, you could be violating the IRS regulations.  Also, the local changes to the vacation home ordinance has greatly impacted buying a home and using it as a vacation rental in South Lake Tahoe specifically. With the city and county capping the number of properties that can be used as vacation rentals, you may need to put a long term renter in a home before getting it on a vacation rental program.  Feel free to give me a call if you are in the market for a South Lake Tahoe home. As a long time resident and broker/associate licensed in both California and Nevada I am eager to assist you with your South Lake Tahoe real estate needs.

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