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