Incline Village & Crystal Bay 1st Quarter 2010

In this kind of market, who do you turn to?

The newly adjusted real estate market has resulted in a downsizing of offices and agents leaving the business; this is evident by the decrease in membership with the National Association of Realtors.  However, clients – now more than ever – need the expertise of a good agent to guide them through the idiosyncrasies of a community, its market place, and the continually changing face of real estate.

So who should clients turn to in this current real estate climate?

A recent Inman News article stated that buyers and sellers want to work with local, well-managed offices. In today’s market, companies and agents must be willing to work harder and longer with buyers, be well educated and patient when working with bank-owned properties and short sales, and be able to concentrate and advise clients on the local market.

“The companies and agents who will lead us out of this current real estate market mess will share three key attributes: they will be the most competent in their craft, utilize all available technology, and be the most dedicated to customer service.

This defines Lakeshore Realty.

First Quarter statistics for 2010:

There were a total of 51 sales broken out as 20 single family sales, 11 Planned unit developments (freestanding units) and 20 condominiums.

Single family residential:

The first quarter sales indicate the number of sales up but the dollar volume is down. Median home prices fell to $925,000, a 51% decrease from last year. This decrease reflects the impact of REO’s and short sales which made up 26% of the total 20 residential sales.  The median selling price of the 6 distressd sales was $620,000.  There were 7 sales over $2 million which impacted the total sales volume of 2009 at $31,892,950 compared to 2010 of  $24,596,500.  

Planned Unit Developments had the largest increase in sales from 2 in 2009 to 11 in 2010.  The median sales price increased from $416,250 in 2009 to $595,000 in 2010.  Their was only 1 distressed sale.

Condominiums 1st  quarter  2009 totaled 11 sales with the median price of $350,000 compared to 20 in 2010, with the median price of $318,450.   The distressed sales totaled 6 out of the 20 sold, with a median price of $220,125.

The second quarter is opening strong  with 50 sales pending and the  quarter is just starting. REO’s and Short Sales will continue to impact the inventory as more properties come on the market. Based on the 174  active homes only (8) are REOs or foreclosures.

Sellers must understand that prices are affected by the distressed sales throughout the village. Pricing needs to be realistic to sell. 

A new interesting number to look at is “cumulative days” on the market. This new number  gives a total history of properties which hit the market especially those listed by different agencies while no sale occurs. The range can vary from just listed with 10 days to over 1000 days in some cases.

A July 17, 2009 headline of USA Today read “ Upscale Home Sales Lag As Jumbo Loans Are Hard To Get.”    During the first half of 2009, any realtor in Tahoe, San Diego, Los Angeles or San Francisco could have confirmed that upscale homes were not selling and the lack of mortgage financing was contributing to the problem.

Since the date of this headline, the Dow Jones average has increased from 8,711 to 10,972, the gross domestic product went from negative growth to positive growth and the Case Schiller home price index increased after three consecutive years of declining price trends.  With these positive economic trends, many financial institutions are starting to gain confidence in the price stability of the collateral securing mortgages; and consequently, many banks are sticking their toes back in the Jumbo Mortgage Market.

The evidence of new jumbo products and more lenient underwriting guidelines are showing up in many places:  US Bank is now offering both construction loans and lot loans; Bank of America, US Bank and GMAC are offering 80% jumbo loans for primary residences; US Bank and Bank of America are offering 75% jumbo loans on second homes; and ING, Bank recently increased its maximum loan to value for jumbo loans on primary residences to 75%.   Although the maximum loan to value for larger jumbo loans is slightly lower than 80%, they are available from several banks up to $3,000,000.

Similarly to what happened in the early 80’s, the strengthening economy is encouraging financial institutions to expand their jumbo mortgage products; and as competition intensifies, loan to values and underwriting guidelines are becoming more lenient and jumbo loans  are coming back.

Steve Peterson

Branch Manager

Sierra Pacific Mortgage

The end of the first quarter indicators are more buyer’s and realistic seller’s for 2010.

The quarter ended with 51 closed escrows  – 20 residential ( 6 Reo’s or Short sales) – 20 condominiums (4 short sales)- 11 planned unit developments (2 Reo’s)

 Same quarter 2009   =  28 closed escrows- 15 residential- 11 condominiums – 2 planned unit developments

Current inventory of  active residential homes =173 with a median of $1,487,500 

 The highest number of pending sales fall in the price $600,000  and below price with 8 sales followed by the next price jump of $600,000-$800,000 with 4 sales pending.

This last week there has been substantial activity in home sales .  1081 Tiller was an exceptional value which took 6 months of patience to close as a Short Sale. New properties listed this week  the most interesting is 935 Lakesore , on the water with a beautiful sandy beach the drawback is the house is under a remodel so the new buyer will have to take on this undertaking. 

Here is a list of listings within these condominium complexes 1000 Lakeshore, Third Creek, 999 Lakehore, McCloud, Water front complexes

Buyer’s do need to beware when purchasing to confirm there are any outstanding assessments, outstanding litigation with the association and builders and the status of the HOA with regard to REO’s.

This is an excellent time with interest rates low to take advantage of this second home market. Give us a call or email for assistance in finding the right home for you.