How short sales affect home values.

When reviewing the sales there are always exceptions to be taken into consideration with sales. They may or may not be considered an “arms length transaction” meaning willing seller and willing buyer .  Exceptions to be taken into consideration include, REO’s, Short sale, distressed sale or developers purchasing for speculative building.

We predict the number of short sales or REO’s will increase over 2009 by a small margin and mainly in the lower price ranges under $800,000.

There are currently 21 homes defined as -New construction/never occupied/under construction.

The one quality these properties share is the large square footage with 12 over 5000 square feet. The equation for building out a spec house took into consideration the ability to maximize the number of square feet a lot is allowed.  Many factors play into this equation including stream zones, steepness of the grade, set backs, easements, levelness of the lot all dictated by Tahoe Regional Planning agency.  A few years ago the bigger the better for buyers. Not the case today. Sales indicate buyers are more interested in smaller homes between 2500-4000 square feet.