Top Ten Reasons to Invest in Lake Tahoe
Real Estate
A Leading Lake Tahoe Real Estate Expert Explains the
Most Important Benefits of Owning Lake Tahoe Real Estate
By Theresa
Souers, Pinnacle
Real Estate Group of Lake Tahoe, Inc.
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Even in a challenging real estate market, there are substantial
benefits and reasons to invest in Lake Tahoe real estate,
especially in the South Lake Tahoe area.
# 10. Ideal Weather Conditions
Ever wonder why the tourist crowds are even greater in
the summer than they are in the much sought-after Lake
Tahoe winters or ski season? While summer finds nearby
Sacramento and Reno experiencing temperatures in the 100’s
and the Bay Area is socked in with fog, Lake Tahoe generally
enjoys highs in the low 80’s. And, don’t let
the fact that Lake Tahoe is known as a world-class ski
destination fool you into thinking that the winters are
uncomfortable. An average January day ranges from 15 –
41 degrees with brilliant sunshine compared to Vail (0
– 31,) Jackson Hole (5 – 28,) and Stow (1
– 25.) Most winter days, a good sweater will do
the job. A storm will come in, drop the snow and leave
us basking in sunlight. And to the joy of sun worshipers,
the sun shines approximately 275 days a year.
# 9. Year Round Recreation
Consumers in the second home/retirement age group are
more physically fit and healthier than ever before. These
people are on a quest for a variety of outdoor activities.
Unlike most ski or golf resorts, Lake Tahoe has something
for everyone. The pristine blue waters and sandy beaches
provide swimming, fishing and sun bathing. Boating enthusiasts
range from kayaks to sailing to motors. The forest and
mountain trails draw the hikers, bikers, rock-climbers,
snow mobiles, snow shoes, cross country skiing and campers.
Golf resorts range from lakeside to high desert. Photographers,
painters and artists of all mediums flock to the area.
Lake Tahoe offers the complete selection of recreational
activities of virtually every variety, and Lake Tahoe
offers them year round.
# 8. The Relaxed Atmosphere
Those people who are seeking relief from long hours inhaling
exhaust fumes, long lines at restaurants, long lines at
gas stations and pushing through sidewalk traffic, find
themselves reveling in the joy of a 10 minute commute
to nearly every destination. The average population of
the entire Lake Tahoe area, including the South Lake Tahoe
Stateline area, is approximately 34,000 and on most given
days, “peaceful” replaces “hustle/bustle”
when describing the overall atmosphere.
# 7. Real Estate’s Rolling Boom Effect
Whenever the real estate market begins a trend, it is
important for real estate investors in particular to study
the rolling boom effect. Generally speaking, when an area
is experiencing high real estate activity, one should
look to the surrounding areas for the next wave of activity.
This is especially true of resort market real estate investing.
Thus, the Lake Tahoe real estate market benefits from
the surrounding Reno, Sacramento, and overall San Francisco
Bay communities. As of February 1, 2008, we are receiving
reports from colleagues within these cities that values
are beginning to stabilize and that there has been increased
real estate activity. Based upon the number of online
inquiries for the Lake Tahoe real estate market, it appears
to be just a matter of time before we are back on track.
With today’s’ inventory surplus, low interest
rates and the news blasting daily “doom and gloom”
reports, sellers are more willing to negotiate than we
have seen in a decade.
# 6. Baby Boomer Buyers
Baby boomers who are in their peak earning years, are
investing actively in second homes and retirement homes.
At the same time, many baby boomers are finding themselves
inheriting various levels of wealth from senior family
members. This generation is choosing to work longer while
playing harder. These people continue to search for second
homes near beaches, lakes, ski resorts and golf courses.
Lake Tahoe is one of the few second home destinations
that can offer all three. The word must be out –
75% of our current homebuyers are from out of the area.
The Baby Boomers are the driving force behind the resort
market industry and they have only just begun to invest.
# 5. Affordability
Reasonable pricing is one of the key reasons to invest
in Lake Tahoe real estate. According to the South Lake
Tahoe Association of Realtors MLS, the median price (based
up the previous 12 months’ sales) for a single family
home within Lake Tahoe’s South Shore is $449,950,
less than half (and in some cases, a third) that of Vail,
Aspen and Jackson Hole.
# 4. Superior Real Estate Values
While the current home values in Lake Tahoe are down from
the peak of early 2006, the decrease does not come close
to what we are seeing in other parts of the country. According
to the National Association of Realtors’ third quarter
report for 2007, the hardest hit states were: Utah, down
21.4%, New Mexico down 23.7%, Nevada down 35.3%, Maryland
down 28.6%, Florida down 32%, California down 27.8% and
Arizona down 30.9%. Across the nation, the average median
home price is down 13.7%. Where does South Lake Tahoe
real estate stand? During the same period, third quarter
of 2007, the median home price was down only 4.6%. Upon
the release of data on January 31, 2008, within the South
Lake Tahoe neighborhoods, The Y, Tahoe Paradise, Tahoe
Island Park, Stateline, Pioneer Trail, North Upper Truckee,
Country Club/Elk’s Club and Black Bart areas have
all reported increases in value as compared to the same
time last year.
# 3. Opportunities for Supplemental Income & Vacation
“House Swapping”
Lake Tahoe is a world-class vacation destination. Not
only does the winter snow bring visitors from around the
globe, but to the surprise of many, summer brings an even
greater number of tourists. Vacation rentals bring in
subsidized income which can help cover the costs of your
Lake Tahoe real estate investment. When a home offers
the “Tahoe Look,” dwells within a desirable
location (near outdoor recreation) and includes amenities
such as a hot tub or pool table, the demand increases.
Many of these homes average bookings 100+ nights a year.
Typically, the more bedrooms and baths a home has, the
higher the income. One of our current listings, a 6 bedroom
contemporary home has averaged an income over $125,000
for five years now. With today’s technology, many
homeowners are choosing to manage their own rentals with
a great deal of success.
Another advantage of owning a vacation home in Lake
Tahoe involves the current trend of “house swapping.”
Websites are available which unite homeowners around
the world that are interested in trading homes for their
vacations. We have clients that have swapped homes in
Paris, Hawaii, and Thailand.
# 2. Strictly Limited Supply
In a nutshell, there is no chance of real estate over-development
having a negative impact on the value of Lake Tahoe homes.
Generally, supply is low and demand is high. Today’s
current housing crisis is having its greatest negative
impact in areas where endless housing tracts were developed
in short periods of time. Areas like Bakersfield, CA,
Phoenix, AZ and Las Vegas, NV are examples of over-development.
During the 2004-2005 “boom,” investors and
developers were throwing up houses at break-neck speed
in hopes of huge profits. When this market came to a screeching
halt, these areas were the first to see the foreclosures
and will take the longest to recover. On the other hand,
Lake Tahoe real estate is an environmentally protected
area and as a result, growth is strictly limited. In Lake
Tahoe, supply will always be in the favor of the investor,
especially those able to hold tight through more challenging
real estate markets, like the current one.
And, # 1. Your Quality of Life: Would You Rather Watch
Your Investments or Live Them?
Everyday, we hear those who have invested in Lake Tahoe
real estate praise the benefits gained through living
a less stressful and more joyful life. These benefits
include better health, longer life, better relationships,
and so forth. How does this relate to investing? Think
about it. If you are addicted to watching your investments
grow, (and most of us are in one way or another) how
much more pleasant would it be to do so relaxing on
the beaches of Lake Tahoe rather than pulling your hair
out in front of your computer. You can watch arrows
going up and down or you could ride the chair lift up
and swish your way down. You can listen to computer
chimes or you can listen to the wind in the pines. What
could be better than wrapping “quality of life”
and long term investments into one “full benefits”
package? Robert Frost inspired us to unite vocation
with avocation. Investing in Lake Tahoe real estate
is just such a venture. The pay offs can be huge.
About Theresa Souers
Theresa Souers is a partner in the Lake Tahoe real estate
company, Pinnacle Real Estate Group, Lake Tahoe. She was
named by the Tahoe Daily Tribune to be one of Lake Tahoe's
"Ten Most Influential Women" and in 2006 Theresa
was named "Realtor of the Year" by the South
Tahoe Association of Realtors. For more information about
Ms. Souers and Pinnacle Real Estate Group, please visit
http://www.homeintahoe.com
or call 877-SOUERS 5 (877-768-3775)
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