Millions Heading toward Foreclosure

What happens when the foreclosure moratorium ends?

For homeowners who are not in good standing in a forbearance program, servicers may begin or resume the foreclosure process.

Homeowners in a forbearance program have through the end of the program to begin making payments again. Once their program ends, they may also apply for an extension. Further, when they begin to make payments again, homeowners will need to talk to their servicers about their options for repaying the mortgage payments missed during their forbearance period.

But many homeowners will be unable to qualify for forbearance or unable to make payments once their forbearance program expires. In fact, in California alone there are still roughly 1.4 million people out of work compared to pre-pandemic levels, encompassing renters and homeowners. Still others continue to work but have seen their incomes reduced.

firsttuesday forecasts foreclosures will begin impacting the market in the second half of 2021. These distressed sales will pull down home values and cause homebuyers to pause their plans to purchase. Home sales volume and prices will decline through 2022, bottoming in 2023. Get the full story here.

El Dorado County VHR Update

VHR NEWS

El Dorado County recently announced that any vacation home rental found to be operating without a permit will not be permitted to obtain a permit until all past due transient occupancy taxes, penalties and interest are paid in full and will be precluded from applying for a vacation home rental permit or from being added to the waiting list for a one year period.

Renewals of existing permitted vacation home rentals in the Tahoe Basin, for which a vacation rental permit was granted based on an application submitted on or before November 1, 2020, shall not be limited based on the cap requirements.
An application to renew a permit for a vacation rental shall be submitted no sooner than 180 days before the expiration date of the existing permit, and no later than the date of expiration of that permit. Upon receipt of a complete application, the expiration of the existing permit shall be stayed until final action is taken on the renewal application.

Children five years of age or younger are not counted towards the occupancy limits. Occupancy may be lowered pursuant to the outcome of the fire and life safety inspection.

A bedroom shall only be recognized as such for purposes of this ordinance if it has been approved and inspected by the Building Official, and can be verified by
reference to the Assessor’s office.

Skyland Update

Skyland

Skyland is one of the few neighborhoods on the Nevada East Shore to have not sold as many properties as the previous year.  In 2019 and 2020 there were a total of 11 sales each year.  One of the predominant changes thus far in 2020 has been the reduction in the total average days on market to sell a property. 2020 saw days reduced from 185 in 2019 to 97 this year.  Homeowners will be happy to know the median average sales price has increased 5.6% from $1,197,000 in 2019 to $1,265,000 this year.  

Nevada Open Houses

NV Assoc of Realtors

Nevada’s Governor announced a plan to commence all in-person showings and open houses of single family and multi-family residences currently occupied and on the market for sale, effective at 12:01 a.m. on October 1, subject to the following limitations:

  1. Showings and open houses of properties may not take place with the occupant present.
  2. Showings of properties are limited to one prospective buyer and one real estate professional for both the seller and prospective buyer at a time. For the purposes of this provision, “a prospective buyer” includes the buyer and the buyer’s spouse, domestic partner, business partner, or family members.
  3. Sellers conducting an open house are responsible for ensuring that there will not be more than one prospective buyer viewing a property at any given time. This may require having an individual present to properly meter prospective buyers entering an open house.
  4. Sellers are encouraged to utilize appointments for in-person showings and open houses to the greatest extent practicable.
  5. Real estate professionals are encouraged to utilize three-dimensional interactive property scans, virtual tours, and virtual staging to the greatest extent possible.
  6. Real estate professionals are encouraged to avoid in-person transactions and services to the greatest extent practicable.
  7. Real estate professionals must require all participants at in-person showings and open houses to wear face coverings at all times pursuant to Directive 024 and must follow CDC guidelines for in-person showings and open houses.
    Some additional guidelines recommended by the CDC and Nevada REALTORS® are as follows:
    • All visitors maintain 6ft;
    • Real estate professionals have available gloves and hand sanitizer for use and remind clients to not touch surfaces when viewing property as well as wipe down surfaces as frequently as possible.

Multiple Offers Currently Are the New Normal

Real Estate Update

I was asked recently about the percentage of sales at South Lake Tahoe that had sold above the seller’s asking price in the last 30 days. Based on a total of 137 single family home sales the numbers I saw caught my attention. Especially when compared to last years numbers.

Forty percent of the properties sold in the last month were above the asking price which was to be expected with the lack of current inventory. 43% were sold below the asking price. Further research showed most of those properties had been on the market for over 60 days or were homes priced over $1,000,000.

Only 17% were sold at the asking price. Regarding properties priced over $1,000,000 only 2 of 16 residences sold above the asking price.

Looking back on 2019 as a reference there were only 62 single family sales during the same time period. That was 55% less than this years sales during the same time period. Plus there were only 6% of the properties sold above the asking price as compared to 40% in 2020. 81% sold below the seller’s asking price, and 13% sold at the seller’s asking price. Who knew? Now you do.

September 13, 2020

New Tahoe Key’s Listing – 1986 Garmish Ct

1986 Garmish Ct

The owners have decided to sell their Tahoe Keys waterfront home after a water line leak from their refrigerator 2 years ago. All remediation work has been completed and the residence is awaiting new owners to rebuild.  Priced to sell this residence could be an investors next project or a future homeowners blank canvas to construct the home of your dreams. Located on a quiet cul-de-sac street with your own private dock this particular property has a bit more space around it than most Key’s homes.  One of our areas neighborhood parks is located across from the dock so enjoy the scenery and the beautiful views of our local mountains each evening from your own rear deck.  Hoping to see you soon, this residence is available to show anytime. Asking $675,000. Contact Robert Stiles at 530-314-0352 to show anytime.