Robert Stiles

South Lake Tahoe is experiencing an increase in REO and short sale activity which is decreasing market values across our lovely area.  47% of those single family residential homes sold in the last 90 days are REO (bank owned) properties or Short sales.  We have been hovering around 50% for the last eight months.

As of August 31st the median residential sold price in South Lake Tahoe had declined 10.2% to $319,000 from $355,000 the previous year. The median sold value has remained steady since October of last year.  It will be interesting to see if that second wave of foreclosure activity develops in our area over the fall months.  I recently read that it could come as late as next Spring.

Some area neighborhoods though have still declined over 20% in value since last year while the Gardner Mountain area has declined only 5% in value.  Al Tahoe is down 18.4% from August 2009 while Montgomery Estates values are up 25% from a year ago.  For those living in Tahoe Keys, market values have decreased 11% from a year ago.  For a look at your neighborhood click on STATS at our MLS Search page.

With REO (bank owned) properties and Short sales prevalent throughout the area now could be the time to purchase property in South Lake Tahoe.  Decent mortgage rates should create urgency for those looking to purchase in one of the country's premiere locations.  Just last week mortgage rates were at their lowest point all year.

Also keep an eye on those overall unemployment numbers from the government.  Unemployment in South Lake Tahoe is 16.8% by the way.  For more information on your home or neighborhood contact me anytime.  I look forward to hearing from you.