| You may know that South Lake Tahoe has
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| | 98.5% of the list price. Today, the
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| become one of the country's most popular
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| | average home is selling for 95.8% of the
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| resort destinations. But have you thought
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| | original list price.
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| about it as an investment opportunity?
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| | 4) Expansive Redevelopment. Following
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| Even in a challenging real estate market,
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| | many years of planning, dreaming and
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| South Lake Tahoe reigns as one of
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| | hoping, the next phase of South Lake
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| California's top-advised real estate
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| | Tahoe's redevelopment phase is underway.
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| investment areas.
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| | Rundown motels, shops and similar
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| In Lake Tahoe's vibrant real estate
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| | structures have been demolished to make
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| market, inventory is approximately twice
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| | way for future developments. Some
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| that of 2005. Median home prices are
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| | examples of future developments include a
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| slightly lower and sellers are
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| | 71,000 square foot convention center and
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| negotiating more than ever. It's a
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| | two hotel-condominiums featuring boutique
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| buyer's market!
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| | shops, entertainment and proximity to
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| Adding to the lure of the area, word is
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| | nearly all that the South Lake Tahoe
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| spreading that South Lake Tahoe's next
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| | Stateline area. Developers are
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| redevelopment phase is underway and
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| | anticipating this project to bring in
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| gaining national attention. Most
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| | approximately 180,000 visitors a year.
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| important, though, is the enthusiasm
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| | The Time Is Right to Invest In South Lake
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| following Vail's purchase of South
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| | Tahoe Realty
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| Tahoe's Heavenly Mountain Ski Resort.
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| | South Lake Tahoe's real estate values
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| It's almost certain that today's lower
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| | have generally escaped the dramatic
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| values will not last long.
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| | declines that have so adversely impacted
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| The following reasons are why Lake Tahoe
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| | various regions of the state throughout
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| real estate is primed for investors.
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| | the years. According to Leslie
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| 1) Large Inventory = More Buyer Options.
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| | Appleton-Young, chief economist for the
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| As of August 26, 2007, there were 586
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| | California Association of RealtorsÂ(R),
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| single family residences for sale with 56
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| | "With credit drying up in recent weeks,
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| currently in escrow. This inventory is
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| | we expect further weakness in sales over
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| considerably higher than the 366/96
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| | the next few months". She continued by
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| reported in August, 2005 (although
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| | adding that the sales declines will be
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| slightly less than the 594/46 reported
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| | driven by both tighter underwriting
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| August 31, 2006).
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| | standards due to the sub-prime mortgage
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| 2) Affordable Prices. Affordability is
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| | crises and the adverse psychological
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| South Lake Tahoe's charm. When compared
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| | impact of news and information regarding
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| to other international resort areas,
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| | increases in foreclosures and mortgage
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| South Lake Tahoe's median home price of
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| | defaults.
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| $463,000 is a fraction of those found in
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| | At the same time, a door seems to have
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| Aspen, Colorado ($1,199,700), Vail,
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| | been opened in South Lake Tahoe.
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| Colorado ($791,000) Park City, Utah
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| | According to a recent article in Inman
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| ($605,000), and our neighbor Tahoe City
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| | News, one in five economists surveyed
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| ($1,001,500.) Likewise, when compared to
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| | predicted a "meaningful" recovery in U.S.
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| California's median home price of
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| | housing markets before the second half of
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| $586,030, South Lake Tahoe's property
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| | 2008. About 38 percent expected a
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| values are absolute bargains-with the
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| | recovery in the second half of 2008,
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| lake, mountains, blue sky and pristine
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| | while 42 percent said housing markets
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| seasons as bonuses.
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| | won't turn around until 2009 or later.
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| 3) Buyer's Market = Negotiation Leverage.
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| | Our recommendation is to take advantage
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| Supply, demand, and consumer confidence
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| | of the opportunities that will be
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| have played an immense role in buyer
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| | presented within the coming months.
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| negotiating strength. As is common in the
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| | For us personally as well as
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| South Lake Tahoe real estate market, when
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| | professionally, we have found that owning
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| summer begins to wane, sellers become
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| | Lake Tahoe real estate is a far more
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| more anxious to sell. In a nutshell, they
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| | enjoyable way in which to watch your
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| want to close escrow prior to the first
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| | investments grow when compared to other
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| snowfall. As long as inventory is up
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| | options. When given the choice of
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| (more homes for sale), there's more room
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| | sitting on a lake beach and swishing down
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| for buyers to negotiate the sales price
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| | world-class ski slopes vs. pulling out
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| and other accommodations. As an example
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| | our hair out watching the stock market,
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| of this type of leverage, during 2005,
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| | our choice is clear.
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| the average home sold for approximately
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|
