Reprinted from the Sierra Sun Thursday, September 18^th, 2008

Bonnie Jessee, Realtor 530 412 3984

A row of houses for sale in the Winter Creek Development in Truckee shows times are slow for developers.

Emma Garrard/Sierra Sun

Small contractors and big developers alike are trimming down as the real estate market continues to slump.

But East West Partners has seen less of a slowdown in the Tahoe-Truckee area compared to other properties they have in Colorado, he said.

“Industry-wide we’ve seen a slowdown, but comparing Tahoe to Park City or Vail, we’ve seen less pronounced effects in Tahoe,” Riva said.

The Winter Creek development in Truckee has slowed some along with the rest of the market, said Tom Grossman with GLA Morris Construction, but overall is still doing well.

Likewise, Sue Ruane, executive vice president at the Tahoe Sierra Board of Realtors, said real estate agents have been relatively insulated from the declining housing market.

“We usually have a membership of about 1,000 — always right in that

range — and right now we’re at 950, so the effects haven’t been as big as you’d think,” Ruane said.
 
Grossman said all this means it’s a good time to buy locally.

“I think the entire Truckee-Tahoe market is very under-valued right now, and is a great investment,” Grossman said.   Give me a call today at 530 412

CALIFORNIA REAL ESTATE NEWS

Will The Home I Buy Will Appreciate In Value?

Bonnie Jessee, Realtor

Truckee, California 530 412 3984

As a buyer’s representative my buyer’s best option is to connect with me, your Realtor and together study the area you desire to live in and do the homework to learn as much about that particular area as possible.  As your local Realtor I can provide you with an overwhelming amount of information – because I know the territory!

In some areas, homes closer to town centers and recreation areas are valued higher and appraise at a more rapid rate because of the desire of the public to shorten their commute to and from work and play (I can run a report showing the sales, listing times, properties on the market for the past several months ~ or however rapidly the local market might be changing).  It is also possible you may get a nicer and larger home for the same price, if willing to consider a longer drive to work or play and the chosen home may grow over time to become a great property buy.  Studying the town future land use map, which can be obtained at the Town of Truckee website www.TownofTruckee.com will provide useful information on Nevada and Placer County plans for the future.

The most often quoted rule is that location, location, location. Typically, you will want to make sure the house does not back to busy streets or front them for that matter.  Avoid corners and intersections.  Choose mid block or a cul-de-sac.  My suggestions are always to stay away from homes which are considered "unique” (or really means ‘strange’) unless of course they appeal to a wide range of people.

You’ll want to be sure the home has at least two bathrooms, unless you plan to remodel.  Obviously if you are buying as a second/vacation home this will be necessary for privacy!  Also, buying a smaller home in a fabulous neighborhood might provide for appreciation. You probably already know about the schools and shopping convenience, as well as potentials which might detract from the property value.  Having me as your professional Realtor to advise you is the best bet for you the buyer.  Remember, that I really want your repeat business (it’s a small town)! And as a true professional I would ever tell an untruth to you, my client and future friend.

Sometimes it is just timing that works out to provide you appreciation gains; for instance buying that home before a major surge in local market prices.  This would be related to the need to be informed about the area before purchasing the home: Your Realtor, Bonnie Jessee 530 412 3984~CALL ME.

www.welcomehometruckee.com

Lake Tahoe, California

WAITING FOR THE BOTTOM TO DROP OUT on HOME PRICES? 

Bonnie Jessee 530 412 3984

Whenever the market slows and prices decline as they sometimes do in certain areas, I have noticed some buyers are extremely tempted to wait on the bench to find that incredible bargain in terms of price, location and whatever other amenities you are searching for.

My professional advice is to not let yourself be tempted for too long!  Keep these things in mind - when prices turn, interest rates usually follow the upswing.  A home that appeared to have a bargain price and great financing can lose both those advantages as quickly as overnight.  Remember also, once the market has truly turned upward, history tells us it is likely not to descend again and if so that time period could be decades.

Also, there are considerations other than money when making that very important decision to purchase.  If you have found the home for your own future and the future of your family, risking the potential loss over a few hundred or even a few thousand dollars just isn’t worth it!

Purchasing your vacation or second home isn’t all about financial issues of course.  It means living your dreams and those of your family.  Waiting for the bottom might find you buying on the upswing! 

Please call me anytime and allow me to share our current market information with you.

Bonnie Jessee 530 412 3984

www.welcomehometruckee.com

Truckee, California Real Estate Market Snapshot

Bonnie Jessee, Realtor 530 412 3984

www.welcomehometruckee.com

What’s Happening Truckee/Tahoe?   As of June, 2008, a slight increase in pricing in Truckee from the previous month.  While some markets across the country are seeing the opposite of these numbers, here in Truckee~North Tahoe we are witnessing stabilization with moderate increase in pricing.

Currently there are approximately 220 single family homes in the greater Truckee area listed for sale. While some of these properties are in ‘escrow’ we see the median asking price is currently $759,000.00 while the median DOM (days on market) is currently 74 days (a reduction of 14 days since the previous month) as well as many days less than the previous several months and many days less than many other market areas.  It is taking less time for (SFR) single family residences to sell as of June and July of 2008.

Being that the median asking price is $729,000.00 ~ the lowest priced property (SFR) is currently $299,000.00 while the highest is $8,000,000.00 ~ The median asking price is actually a little lower than the prior month due mainly to price of current inventory.

As a potential buyer in the greater Truckee~North Tahoe area I would encourage you to make your move ~ head up the hill and check out what is for sale!  While we are aware that other parts of the state and country are in flux markets, it is extremely important that you as a consumer/buyer, understand that there are ‘pocket’ areas within markets even in our greater Truckee area.  Get with a professional, full time Realtor that has the depth of knowledge of understanding of this current marketplace for the service you deserve!

Happy Home Hunting!  Bonnie Jessee, 530 412 3984

ON A CLEAR DAY…

HIKING LAKE TAHOE AND TRUCKEE

Bonnie Jessee, Realtor www.welcomehometruckee.com

530 412~3984

Perhaps you are a little bit like me and don’t do marathon hikes!  But when I do have an hour or two there are fabulous places to take short distance and family hikes.  Here are just a few…

Paige Meadows in Tahoe City is a beautiful hike with a pathway connecting a series of meadows.  Twin Peaks is visible and the trails are lined with wildflowers and beautiful aspen trees.  Be certain to stay on pathways however, it has a reputation of being Tahoe’s Bermuda Triangle.

Martis Creek Wildlife Area in Truckee is a family friendly and dog friendly trail system which runs through a fabulous wetland area.  There is lots of wonderful wildlife to view for novices and seasoned viewers.  Take the long way or make it a lunch hour hike.

Eagle Rock in Tahoe Pines on the west shore of Lake Tahoe is one of my all time favorites.  It can be pretty steep however the paths are well worn and it is a 15 minute hike to the incredible volcanic rock outcropping.  Once you are there you will be amazed at the views!

Fallen Leaf Lake in South Lake Tahoe has numerous wandering trails around this neighbor lake and can be accessed thru Fallen Leaf Campground or the Angora Ridge Road.  Take a long or short hike – family friendly!

Spooner Lake on the East Shore of Lake Tahoe will give you lush, flowing meadows, delightful aspen groves and wildflowers.  It’s about a two mile hike all the way and you just might begin to believe in wood gnomes after taking this trail!

Happy Trails ~ contact me at any time for your real estate needs ~ Bonnie Jessee, 530 412 3984

WHAT ARE THE TAX DEDUCTIONS FOR SECOND HOME OWNERS?

Bonnie Jessee, Realtor

530 412 3984

I like to believe that my buyers understand the best tax moves when it comes to structuring their real estate investments, so when writing this article I will assume that my friends and clients have some knowledge; however, not all. It’s not unknown that one can itemize expenses associated with owning a second home such as interest, taxes, upkeep, management fees, etc.

There are a few cloudy areas, however, that the Internal Revenue Service wants to be sure you are aware of before your tax person files that return. Do you completely understand the different between a second home and investment property?  This is typically the area where folks can get confused.  If you have tenants renting this property for a year at a time, it is NOT considered a second home. To qualify, you must spend time at this property for at least two weeks a year or at least 10% of the amount of time the property is rented out.   Also, before you itemize in this way, you might want to make sure that the standard deduction isn’t the most financially equitable way to go. In some cases being involved fractional ownership, it is more advantageous to take the standard deduction.

Just last week, a friend/client of mine and I were talking and I mentioned the second home deduction also applying to their new RV! That’s correct. Since they purchased a RV that has a kitchen, bathroom and bed, it can be designated as their second home and the interest, taxes and storage charges can be itemized deductions used for their benefit. If you have more than one second home, remember that you can only select ONE property to use for scheduling deductions each year.

Always utilize the professional services of your CPA or tax preparer each year to make sure you are in compliance with the current allowable deductions to avoid conflict with the IRS.

Check out your new tax deduction at www.welcomehometruckee.com

Thanks!

Happy Deductions!

The Business Cycle and Buying a Home ~ Home Buying Advice

How to Time Your Home Purchase to the Market Cycle?

Bonnie Jessee, Realtor

530 412 3984

Ah, if only we had that special real estate crystal ball!  Then timing your purchase to the cycle would be an easy task!

Attempting to time your purchase to the “business” cycle is sometimes getting lucky and sometimes paying attention to the small signs.  Even economic advisors and consultants have inconsistencies accurately predicting the future economy. Even when these experts are relatively successful, the real estate market does not necessarily move in tandem with the economy as a whole.

Part of the reason is the timing and inconsistency of interest rates.

During periods of economic growth, interest rates are generally higher. Therefore fewer people can afford to purchase a home or second home unless they are cash purchases. When the economic situation is slower, interest rates fall, and more people can afford to purchase a home by obtaining a mortgage.

As you can see, this cycle does not move in conjunction with the remainder of the economy. It is also influenced by levels of employment, pay scales of various jobs, and consumer outlook for the future. Such facts make it difficult to know ~ ahead of the time ~ whether the housing market is going to be a wise investment.

The best advice is to preview the market where you intend to purchase, deal with a professional Realtor®, and plan on holding for as many years as possible. 

Unless, of course, you have a crystal ball!