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