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