UPDATE: Monday, 03/29/2010 103 - Single Family Residential Sales in the last 90 days. 36 are REO and 23 are Short Sales. 9 - Two to Four Family Multi Unit Sales in the last 90 days. 3 are REO and 3 are Short Sales. Short Sale activity is increasing as lenders receive government support.
South Lake Tahoe is experiencing an increase in REO and short sale activity which is decreasing market values across the area. 57% of the single family residential homes sold in the last 90 days are REO or Short sales.
As of February 28th the residential median sold price in South Lake Tahoe had declined 19.7% to $318,000 from $395,000 a year ago. We have been hovering around $318,000 for the last 150 days. The number of units sold in the last 12 months has increased though from 381 to 465. A 22% increase due to additional REO/Short sale activity.
Some area neighborhood values have declined over 30% while the Gardner Mountain area has remained flat in value over the last 12 months. Al Tahoe is down 28.2% from the end of last February while Montgomery Estates is down just 6%. For those living in Tahoe Keys values have decreased 18% from a year ago.
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 and a soon to expire $8000 tax credit for first time home buyer's should create urgency for those looking to purchase in one of the country's premiere locations.
For more information on your home or neighborhood call anytime. Looking forward, there's more talk from main street speaking of a possible double dip recession. The government is probably the only one who knows the real answer to this occuring. I'd watch the overall unemployment numbers and I don't see anything positve happening to our local market till talk of a double dip subsides and employment picks back up. Personally I expect prices to decline this year back to 9/11 values before stabilizing. However if you need a place to park your money, South Lake Tahoe is a great location to watch the sun set.