Brent Johnson

There was some improvement in the average sales price, median sales price, and price per square foot of the properties in South Lake Tahoe that were sold in August. For the first time since September 2010, the median sales price actually went up. The median sales price went from $291,000 in July to $295,000 in August. This was a verymodest increase, but for the last 12 months there had been slight drops in the sales price each month.

The number of properties that were sold in August went down slightly as well. There were 44 single family homes and condos that were reported as sold on the South Lake Tahoe MLS, down only 3 units from 47 in July. 41 of the sold properties were single family homes and 3 were condos.

As of right now there are currently 504 single family homes listed on the MLS. There are 386 homes that are active and 118 homes that are in escrow. Bank owned foreclosures account for 65 of the listings on the MLS. There are 26 bank owned foreclosures that are currently in escrow and 39 that are active. There are 71 short sales that are currently listed on the South Lake Tahoe MLS, 36 of the short sales are in escrow and 35 of the short sales are active.

Short sales and foreclosures are considered "distress sales". Although distress sales only account for 27% (136 properties) of the total listings in South Lake Tahoe, they account for 52% (61 properties) that are currently in escrow or "under contract".

August South Tahoe Real Estate Statistics

• There were 44 single family homes and condos that were sold in August, down from 44 in July.
• The median sales price for the properties sold in August was $295,000, up from $291,000 in July and down 7.8% from what it was in August 2010.
• The average sales price was $343,558, up from $301,743 in July.
• The average price per square foot was $192, up from $182 in July.
• The median days on the market was 96 and the average days on the market was 139.
• There were 11 bank owned foreclosures that were sold, down from 15 in July.
• There were 6 short sales that were sold, down from 8 in July.

There was a large increase in the sales price per square foot in the foreclosures that were sold in August. The average sales price per square foot for the foreclosures was $171 in August, up from only $150 in July. The price per square foot of the short sales was $199, up from $198 in July.

With 118 properties in South Lake Tahoe currently in escrow on the South Lake Tahoe MLS, September and October should be solid months with respect to the number of properties sold. It will be interesting to see how the prices of the properties that sell compare to what they were in August.

When purchasing a property in South Lake Tahoe there are some regulations that you are going to want to know about. One of these regulations is the Tahoe Regional Planning Agencies "Wood Heater Retrofit Program". The TRPA requires that if there is a wood burning stove in a property, it must be certified by the EPA. An EPA certified wood stove has been independently tested by an accredited laboratory to meet a particulate emissions limit of 7.5* grams per hour for noncatalytic wood stoves and 4.1* grams per hour for catalytic wood stoves. Click on the following link for the List of EPA certified Wood Stoves.

If there is a wood stove in the property that is not approved by the EPA then it must be removed prior to the close of escrow. South Y Fireplace has a wide selection of both TRPA approved wood burning and gas stoves to replace a non-compliant stove. South Y Fireplace has TRPA approved wood stoves starting at $1200.

Existing open burning fireplaces are legal if they are not used as the primary heat source.

Below is the TRPA's Chapter 91.3B regarding Wood Heaters and Air Quality Control.

Wood Heaters:

The sale of wood heaters which do not meet the emission standards of this subsection is prohibited in the Tahoe Region. Wood heaters to be installed, in the Region, either as new or replacement units, shall meet the requirements of this subsection. Coal shall not be used as a fuel source.

(1) Emission Standards: Wood heaters installed in the Region shall meet the following emission standards for total suspended particulates of smoke emissions:

(a) Catalytic wood heaters shall not cause emissions of greater than 5.5 grams per hour. Following July 1, 1990, catalytic wood heaters shall not cause emissions of more than 4.1 grams per hour.

(b) Non-catalytic wood heaters shall not cause emissions of greater than 9.0 grams per hour. Following July 1, 1990, non-catalytic wood heaters shall not cause emissions of more than 7.5 grams per hour.

TRPA Code of Ordinances

CHAPTER 91 - AIR QUALITY CONTROL 91-3

(c) Wood heaters certified to meet the above standards by the U.S. EPA under 40 CFR Part 60 or the Oregon Wood Stove Certification Program, shall be deemed in compliance with the above standards. Pellet fueled wood heaters labeled as exempt from 40 CFR Part 60 shall be deemed in compliance with the above standards.

(2) Limitations: Wood heaters shall be sized appropriately for the space they are designed to serve. Multi-residential projects of five or more units, tourist accommodations, commercial, recreation and public service projects shall be limited to one wood heater per project area.

(3) Wood Heater Retrofit Program: Effective January 1, 1993, prior to any sale, transfer or conveyance of any building, all existing wood heaters in the building, excluding legally existing open fireplaces which are not primary heat sources, shall be in conformance with the emission standards contained in subsection 91.3.B.

(a) Compliance with this section shall be evidenced by a statement of the seller made under penalty of perjury, on a form provided by TRPA, that all existing wood heaters in the building, excluding legally existing open fireplaces which are not primary heat sources, either conform to the emission standards in subsection 91.3.B or have been replaced with conforming units, or that the structure does not contain any existing wood heaters. The statement shall be submitted to TRPA prior to the sale, transfer or conveyance.

(b) A statement of wood heater conformance shall be required for any subsequent sales, transfers or conveyances. The TRPA requires that prior to the sale, transfer, or convayence of a building, the seller must fill out a Wood Heater Statement of Compliance form.

Wood Heater Statement of Compliance

Wood stoves and fireplaces are of particular concern in Lake Tahoe, due to wintertime inversion layers that prevent the smoke from leaving the Basin. These inversion layers trap smoke close to the ground resulting in elevated pollution levels, poor visibility and even contribute to the decline in lake clarity.

Although the smoke from one wood stove or fireplace may seem minor, added together these stoves and fireplaces discharge tons of dangerous particulate matter, carbon monoxide and a family of cancer-causing chemicals known as polycyclic organic matter to the air each year.

For this reason, the TRPA enacted a "Wood Heater Retrofit Program." This program is similar to those adopted by agencies in such cities as Mammoth Lakes, Telluride, Aspen, Reno, as well as many others across the United States. The TRPA's program has been in effect since January 1, 1993, and is designed to reduce the amount of smoke and other harmful emissions from older, less efficient wood stoves and fireplaces. The program requires that all existing wood heaters, excluding legally existing open fireplaces, comply with emission standards prior to any sale, transfer, or conveyance of any building. These standards can be found in subsection 91.3.B of the TRPA Code of Ordinances.

Compliance with the program must be evidenced by a statement from the seller made under penalty of perjury. This statement will be made on a form provided by the TRPA. No other forms will be accepted. This form will require the property owner to state either that: (1) the structure does not contain any existing wood heaters or: (2) that all existing wood heaters in the building, excluding legally existing open fireplaces that are not primary heat sources, conform to the applicable emission standards. The statement shall be submitted to TRPA prior to the sale, transfer, or conveyance of any building and a copy provided to the new owner no later than at close of escrow. This statement is required for all subsequent sales, transfers, or conveyance of the property.

The TRPA's wood stove retrofit forms can be obtained at our office located on 128 Market Street, Stateline, Nevada. For more information on TRPA's Wood Heater Retrofit Program, please contact TRPA at (775) 588-4547.

When you are looking at homes in South Tahoe, please make sure to ask if the existing wood stove is approved by the TRPA. You will want to know all of the expenses that will involved with purchasing a property in South Lake Tahoe!

December ended up being a solid month in terms of closings for the South Lake Tahoe Real Estate Market. There were 40 single family homes (not including condos) that were sold on the South Lake Tahoe MLS. Although the average price per square foot dropped below $200 per square foot, both the average and median sales prices were up from November.

South Lake Tahoe MLS Statistics

• There were 40 single family homes in South Tahoe that were sold in December, up from 38 sold homes in November and down from 49 sold homes in December 2009.
• There were 24 distress sales in December. 17 of the sales were bank owned foreclosures and 6 were short sales. 60% of the homes sold were distress sales, up from 53% in November and up from 43% in December 2009.
• The average sales price for the sold South Tahoe Homes was $404,998, this is up from $362,943 in November and down from $469,281 in December 2009.
• The median sales price was $332,000, up from $291,250 in November and down from $343,000 in December 2009.
• The average price per square foot was $192 which was down from November when it was $212. The price per square foot was also down from December 2009 when it was $220.

There were 5 Tahoe Keys Homes that were sold in December. The houses in the Tahoe Keys that sold had an average price per square foot of $276. The median sales price was $625,000 and the average sales price was $812,500. Only one of the sold Tahoe Keys homes was a foreclosure, none were short sales.

With 38 single family homes (excluding condos) sold on the South Lake Tahoe MLS in November, buyer activity continued to remain somewhat active for this time of year. Home prices seem like they are trying to stabilize as well. The average price per square foot has been bouncing around in the low $200's over the last few months as follows:

• November 2010 price per square foot-$212
• October 2010 price per square foot-$201
• September 2010 price per square foot-$219
• August 2010 price per square foot- $207

Distress sales still seem to be dominating the real estate market in South Tahoe. Out of the 38 homes sold in November, 12 were bank owned foreclosures and 8 were short sales. 20 of the 38 homes sold (53%) were distress sales. The average price per square foot for the bank owned foreclosures was $174 and the average price per square foot for the short sales was $210. The foreclosures had an average sales price of $312,000 and a median sales price of $227,500. The short sales had an average sales price of $383,750 and a median sales price of $397,500.

South Lake Tahoe Home Sales Statistics

• There were 38 single family homes sold in November 2010, down from 42 in November 2009.
• There were 20 distress sales in November 2010, up from 15 in November 2009 and up from 15 in October 2010.
• The Median sales price was $291,250, down from $297,000 in October and down from $322,000 in November 2009.
• The average sales price was $362,934, up from $357,263 in October and down from $410,355 in November 2009.
• The average days on the market was 131 and the median days on the market was 91.
• The average price per square foot was $212, up from $201 in October and down from $227 in November 2009.
• The percentage of distress sales was 53%, up from 33% in October and up from 36% in November 2009.

The current inventory levels have also slightly improved to a more stable level. The total number of single family listings on the South Lake Tahoe MLS has stayed at 443, but the number of pending sales has gone up from 87 to 95. Currently there are 338 active homes on the market and 95 homes that are in escrow. 22% of the homes listed on the South Tahoe MLS are currently under contract. Of the 95 homes that are in escrow, 21 are bank owned foreclosure and 42 are short sales. 66% of the homes under contract are distress sales, this is down from 71% in October.

Another interesting point is that there have been a lot more multiple offer situations than there has been in a while. Last week I wrote four different offers for four different clients. Three of the four properties that I wrote offers on ended up having multiple offers in on them.

December is going to be a great month to plan a trip to Lake Tahoe to both look at properties and hit the slopes. There are some great deals currently on the market on both short sales and foreclosures. There are also new listings coming on the South Lake Tahoe MLS Daily. The record snow that fell in November has enabled most ski resorts to open from top to bottom for some great early skiing and boarding. Heavenly Ski Resort has over 4000 acres of skiing and boarding open now which is about 85% of the mountain. Make sure to give me a call on my cell phone at (530) 416-2625 to set up an appointment to look at some homes!

South Lake Tahoe MLS statistics as of November 17, 2010

The following statistics are for Residential (single family and condo/town homes) located in the City and County areas of South Lake Tahoe:

• The total number of listings on the South Lake Tahoe MLS is 511 (78 of the homes are listed by Chase=15.3% of the inventory).
• 412 of the listings are active (still available) 42 of the active listings are short sales and 31 are bank owned listings. Only 17.7% of the active inventory is distress sales.
• 99 of the listings are in escrow. 50 of the current houses in escrow are short sales and 25 are bank owned. 75.8% of the current escrows are distress sales.
• The 99 escrows represent 19.4 % of the total inventory in escrow.

Breakdown by price range of the 99 escrows

Under $200,000 21 properties

• $201-$300,000 37 properties
• $301-$400,000 16 properties
• $401-$500,000 9 properties
• $501-$600,000 3 properties
• $601-$700,000 5 properties
• $701-$800,000 3 properties
• $801-$999,000 4 properties
• Over 1 million 1 property

So far this year there have been 495 single family homes and condos sold in the South Lake Tahoe MLS.

• 145 of the properties sold were bank owned foreclosures (29.3%)
• 81 of the properties sold were short sales (16.4%)

There are currently 80 single family homes and condos listed in the Tahoe Keys area. 68 of the properties are active, and 12 of the properties are in escrow. The current Tahoe Keys inventory includes 8 bank owned properties and 7 short sales. There have been 58 properties sold in the Tahoe Keys so far this year. 8 of the sold homes were foreclosures and 6 of the homes were short sales.