Lake Tahoe Real Estate Blog

The “storm of the century” (okay, the century is only 8 years old) is nearing its end and we can barely see the top rails of our back deck. After spending three days working from home, I have definitely come to the conclusion that if I am ever in trouble of some kind, I hope my punishment is house arrest. What a joy to hang in sweats, play scrabble, watch some football (alas, my poor Steelers) and catch up on some loose ends.

While Don busied himself digging us out (I do believe snowblowing and shoveling is considered MANual labor,) I found the time to run the end of the year statistics. And, much as we expected, we found the Lake Tahoe real estate market to have held stronger than many parts of the country.

The most noticeable negative lie in the number of homes sold. During 2007, the South Lake Tahoe Association of Realtors’ Multiple Listing Services reported 404 single family residences and condos sold as compare to 489 in 2006 and a whopping 745 in 2005. On the other hand, the median prices for single family homes and condos sold during 2007 was $435,000 which was down 8.4% from the median home price in 2006.

It’s rather delightful to spend the last day of 07 in the office, looking out at the blue skies and listening to the holiday chatter of our co-workers. Sensing a rather upbeat mood, I was curious as to the year’s overall production levels within the Tahoe area. Something told me that the outcome was going to be better than expected. And, although there is one more day of recording in front of us, the preliminary news was, YES . . . better than we expected.

A quick peek showed the following: The median home price was $435,000, slightly down (approximately 8.5%) from $474,500 in 2006 and $460,000 in 2005. Considering that 2005 and half of 2006 were record breaking years AND in light of the continual doom and gloom heard every night on the news, we are pleased and remain confident that the Lake Tahoe real estate market will always be a choice destination for investors.

Some folks see snow and hear sleigh bells ringing… We see snow and hear phones ringing.

Every year as the Fall season winds down, business owners throughout Lake Tahoe anxiously await news of a “WINTER STORM WARNING.” The snow is on its way. Accompanying these warnings is the promise of a bustling winter season. For Lake Tahoe real estate investors, the bustling winter season can be a boon as well.
Ever since Bing Crosby crooned his way through “I’m Dreaming of a White Christmas” folks have been longing to experience that fantasy for themselves. Visions of huddling around a crackling fire, sipping hot chocolate, singing corny carols and lying exhausted amidst piles of demolished wrapping paper lifts those fantasies to heightened levels. Once their breaths are caught – its time to slap on the new skis, gloves and hats and hit the slopes.

And so it goes. The snow falls and the phones ring. It’s a familiar refrain for those of us who service the Lake Tahoe real estate market. “We’ve been thinking about purchasing a vacation home in Lake Tahoe.” “Do you have any Lake Tahoe rentals available over the holiday – with a hot tub?” “What kind of income can we make if we purchase a Lake Tahoe income property?” “What’s the story behind these fractional home ownerships?”

Traditionally, the Lake Tahoe real estate market has followed a seasonal climate. Within the industry, the seasons are the “Listing Season,” The Buying Season” and the “Time-Off” Season. The Listing Season generally starts mid-May and runs through July. During this time, potential buyers start their search. They look and they watch and they tour and they wait for that perfect home to come along. The Buying season typically starts in late July and runs through October. These are the folks that have been looking, see the inventory begin to dwindle and sense the upcoming winter season around the corner. They want to be in and settled prior to the first snowfall. The Time-Off Season is granted to those within the Lake Tahoe real estate industry allowing them to take continuing education courses, prepare for the upcoming seasons and perhaps a bit of R&R. This season lasts until THE WINTER STORM WARNING!

Aside from 2004 – 2006, Buyers have typically found the best bargains during the winter. By this time, many of the sellers have been on the market for a while and they are ready to move on. And with the prices currently down 8% over the same period last year, the current interest rates having been lowered and the longer times on the market, this may be the best opportunity in a long time for those wishing to acquire a home in Lake Tahoe. Another advantage of purchasing a home in the winter is that one can see how a property fares during the most severe weather. Is it easy to get in and out? Is there enough sunlight? Is there a greater tendency for ice accumulation?

The snow is here, more on the immediate forecast and spirits are high. It’s snowing and the phones are ringing. We hope to speak with you soon.

Yet another service from Pinnacle Real Estate Group, Lake Tahoe… more to come.