| You may know that South Lake Tahoe has | | | | 98.5% of the list price. Today, the |
| become one of the country's most popular | | | | average home is selling for 95.8% of the |
| resort destinations. But have you | | | | original list price. |
| thought about it as an investment | | | | 4) Expansive Redevelopment. Following |
| opportunity? Even in a challenging real | | | | many years of planning, dreaming and |
| estate market, South Lake Tahoe reigns | | | | hoping, the next phase of South Lake |
| as one of California's top-advised real | | | | Tahoe's redevelopment phase is underway. |
| estate investment areas. | | | | Rundown motels, shops and similar |
| In Lake Tahoe's vibrant real estate | | | | structures have been demolished to make |
| market, inventory is approximately twice | | | | way for future developments. Some |
| that of 2005. Median home prices are | | | | examples of future developments include |
| slightly lower and sellers are | | | | a 71,000 square foot convention center |
| negotiating more than ever. It's a | | | | and two hotel-condominiums featuring |
| buyer's market! | | | | boutique shops, entertainment and |
| Adding to the lure of the area, word is | | | | proximity to nearly all that the South |
| spreading that South Lake Tahoe's next | | | | Lake Tahoe Stateline area. Developers |
| redevelopment phase is underway and | | | | are anticipating this project to bring |
| gaining national attention. Most | | | | in approximately 180,000 visitors a |
| important, though, is the enthusiasm | | | | year. |
| following Vail's purchase of South | | | | The Time Is Right to Invest In South |
| Tahoe's Heavenly Mountain Ski Resort. | | | | Lake Tahoe Realty |
| It's almost certain that today's lower | | | | South Lake Tahoe's real estate values |
| values will not last long. | | | | have generally escaped the dramatic |
| The following reasons are why Lake Tahoe | | | | declines that have so adversely impacted |
| real estate is primed for investors. | | | | various regions of the state throughout |
| 1) Large Inventory = More Buyer Options. | | | | the years. According to Leslie |
| As of August 26, 2007, there were 586 | | | | Appleton-Young, chief economist for the |
| single family residences for sale with | | | | California Association of RealtorsÂ(R), |
| 56 currently in escrow. This inventory | | | | "With credit drying up in recent weeks, |
| is considerably higher than the 366/96 | | | | we expect further weakness in sales over |
| reported in August, 2005 (although | | | | the next few months". She continued by |
| slightly less than the 594/46 reported | | | | adding that the sales declines will be |
| August 31, 2006). | | | | driven by both tighter underwriting |
| 2) Affordable Prices. Affordability is | | | | standards due to the sub-prime mortgage |
| South Lake Tahoe's charm. When compared | | | | crises and the adverse psychological |
| to other international resort areas, | | | | impact of news and information regarding |
| South Lake Tahoe's median home price of | | | | increases in foreclosures and mortgage |
| $463,000 is a fraction of those found in | | | | defaults. |
| Aspen, Colorado ($1,199,700), Vail, | | | | At the same time, a door seems to have |
| Colorado ($791,000) Park City, Utah | | | | been opened in South Lake Tahoe. |
| ($605,000), and our neighbor Tahoe City | | | | According to a recent article in Inman |
| ($1,001,500.) Likewise, when compared | | | | News, one in five economists surveyed |
| to California's median home price of | | | | predicted a "meaningful" recovery in |
| $586,030, South Lake Tahoe's property | | | | U.S. housing markets before the second |
| values are absolute bargains-with the | | | | half of 2008. About 38 percent expected |
| lake, mountains, blue sky and pristine | | | | a recovery in the second half of 2008, |
| seasons as bonuses. | | | | while 42 percent said housing markets |
| 3) Buyer's Market = Negotiation | | | | won't turn around until 2009 or later. |
| Leverage. Supply, demand, and consumer | | | | Our recommendation is to take advantage |
| confidence have played an immense role | | | | of the opportunities that will be |
| in buyer negotiating strength. As is | | | | presented within the coming months. |
| common in the South Lake Tahoe real | | | | For us personally as well as |
| estate market, when summer begins to | | | | professionally, we have found that |
| wane, sellers become more anxious to | | | | owning Lake Tahoe real estate is a far |
| sell. In a nutshell, they want to close | | | | more enjoyable way in which to watch |
| escrow prior to the first snowfall. As | | | | your investments grow when compared to |
| long as inventory is up (more homes for | | | | other options. When given the choice of |
| sale), there's more room for buyers to | | | | sitting on a lake beach and swishing |
| negotiate the sales price and other | | | | down world-class ski slopes vs. pulling |
| accommodations. As an example of this | | | | out our hair out watching the stock |
| type of leverage, during 2005, the | | | | market, our choice is clear. |
| average home sold for approximately | | | | |