Reno Foreclosure Blog

Market area: Zephyr Cove, NV.  – Lake Tahoe

Appraised property located on S. Martin Drive

Search parameters:

Gross Living Area:  2,366 SF to 3,548 SF

Non-lakeshore properties

A search of all ages resulted in sales ranging from 1961 to 2002 year built

Current median price = $580,000

Median price from 6/15/05 to 6/15/06   =  $915,000 (total of 74 sales)

Percent decline  =   37%

SALES DATA FOR THE LAST 12 MONTHS

Date Run: 9/12/2010

Base/List Date/Current: 9/12/2010

Foreclosures                         =     6      

Short Sales                           =     5

Arms lengths                         =     11

Total Sales last 12 months     =     23

Percent Special Conditions       =          52%

            Median $          =          $554,000

            Hi $                  =          $1,425,000

CURRENT LISTINGS  =  33   Median days on market = 111

Foreclosures                        =   0         

Short Sales                          =   1

Arms length                         =   32

Percent Special Condition         =          0%

Median $          =          $729,000

Hi $                  =          $2,198,000

Low $               =          $449,000

Home values in the subject’s neighborhood fell more than 40% during the burst of the real estate bubble, but it now appears that home values are increasing. There was a modest price increase in housing in the subject’s neighborhood in Q4 of 2009 and Q1-Q2 of 2010, partially due to government incentives, which have now expired. The report of a price increase appears to have stimulated the market and has resulted in a flood of new listings, but current listing prices are significantly higher than the list/sale prices of the last 12 months. The median list price of the current listings is 32% higher than the median sale price in the last 12 months ($729,000/$554,000). The current high listing prices and increasing inventories may indicate excess optimism by Sellers and Realtors. The increasing values may not be sustainable, as numerous indicators suggest continued declining home values into 2011. It should be noted that 52% of all the sales in the last 12 months were either bank owned foreclosures or short sales. There currently is only one short sale listing and no REO listings, at a time when mortgage defaults, shadow inventory and “strategic defaults of Luxury homes” are still at an all time high. Experts are predicting an increase in foreclosures into 2011.

It should also be noted that the last few months have been the prime selling season for homes around Lake Tahoe, which may be contributing to the higher prices in the last 3 months, and the number of samples in the analysis is only 23 sales and 33 listings, which may not be sufficient for an accurate outcome.

**The total # of comparable active listings used in column 3 (Current 3 months) is the number as of 9/12/10 – (33).

All data provided by the Northern Nevada Regional MLS.  Data was used to assist in estimating the appraised value of a residence.