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Truckee Real Estate - November 2008 Market Update

Bob Yoder (Davis Yoder Realty Group) — Mon, 03 Nov 2008 12:57:29 -0600

The Market Monitor

November 1, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The market experienced a slow down the last 2 weeks of October. There were 2 sales in Old Greenwood, which has been very slow so far this year. Tahoe Donner saw 4 home sales in the $1,400,000 range. All in all sales off but definitely interest in our market.

The lot market was still very slow.

Tahoe Donner

There were 12 home sales with 4 sales over $1 million. There were 3 lot sales. Lahontan There were no home sales.

Old Greenwood/Grays Crossing

There were 2 home sales in Old Greenwood, no sales in Grays Crossing.

Northstar

There was one home sale, asking price $3,125,000.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 12 home sales concentrated in the lower end of the market.

Squaw Valley / Alpine Meadows

There were 3 home sales in Alpine Meadows and one condo sale in Squaw.

If you would like more detailed information or specific information related to your property, please do not hesitate to call. If you know anyone that we can assist to become an owner in our beautiful area and be one of your neighbors, please let us know. If there is anything we can do to help you with your business, we would like to know.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

www.truckeeinfo.com

ryoder@truckeeinfo.com

530-550-5177

Truckee Real Estate - November 2008 Market Update

Bob Yoder (Davis Yoder Realty Group) — Mon, 03 Nov 2008 12:56:12 -0600

The Market Monitor

November 1, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The lot market was still very slow.

Tahoe Donner

There were 12 home sales with 4 sales over $1 million. There were 3 lot sales. Lahontan There were no home sales.

Old Greenwood/Grays Crossing

There were 2 home sales in Old Greenwood, no sales in Grays Crossing.

Northstar

There was one home sale, asking price $3,125,000.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 12 home sales concentrated in the lower end of the market.

Squaw Valley / Alpine Meadows

There were 3 home sales in Alpine Meadows and one condo sale in Squaw.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

www.truckeeinfo.com

ryoder@truckeeinfo.com

530-550-5177

Truckee Real Estate - November 2008 Market Update

Bob Yoder (Davis Yoder Realty Group) — Mon, 03 Nov 2008 12:51:02 -0600

The Market Monitor

November 1, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The lot market was still very slow.

Tahoe Donner

There were 12 home sales with 4 sales over $1 million. There were 3 lot sales.

Lahontan

There were no home sales.

Old Greenwood/Grays Crossing

There were 2 home sales in Old Greenwood, no sales in Grays Crossing.

Northstar

There was one home sale, asking price $3,125,000.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 12 home sales concentrated in the lower end of the market.

Squaw Valley / Alpine Meadows

There were 3 home sales in Alpine Meadows and one condo sale in Squaw.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

530-550-5175

Truckee Real Estate - November 2008 Market Update

Bob Yoder (Davis Yoder Realty Group) — Mon, 03 Nov 2008 12:49:53 -0600

The Market Monitor

November 1, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The lot market was still very slow.

Tahoe Donner

There were 12 home sales with 4 sales over $1 million. There were 3 lot sales.

Lahontan

There were no home sales.

Old Greenwood/Grays Crossing

There were 2 home sales in Old Greenwood, no sales in Grays Crossing.

Northstar

There was one home sale, asking price $3,125,000.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 12 home sales concentrated in the lower end of the market.

Squaw Valley / Alpine Meadows

There were 3 home sales in Alpine Meadows and one condo sale in Squaw.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

530-550-5175

Truckee Real Estate - November 2008 Market Update

Bob Yoder (Davis Yoder Realty Group) — Mon, 03 Nov 2008 12:49:09 -0600

The Market Monitor

November 1, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The lot market was still very slow.

Tahoe Donner

There were 12 home sales with 4 sales over $1 million. There were 3 lot sales.

Lahontan

There were no home sales.

Old Greenwood/Grays Crossing

There were 2 home sales in Old Greenwood, no sales in Grays Crossing.

Northstar

There was one home sale, asking price $3,125,000.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 12 home sales concentrated in the lower end of the market.

Squaw Valley / Alpine Meadows

There were 3 home sales in Alpine Meadows and one condo sale in Squaw.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

530-550-5175

Truckee California Real Estate: October 2008 Market Update

Bob Yoder (Davis Yoder Realty Group) — Mon, 06 Oct 2008 13:37:20 -0500

The Market Monitor

October 2, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

How is the market? We get that question wherever we go.

Well, the facts are that in some areas, notably Tahoe Donner and Lahontan, the market is better than a year ago. Inventory has not gotten out of control and that is the most important gauge of the market. Areas in the country that have problems it is because inventory is through the roof. They simply built too many homes there. That is hard to do here do to scarcity of land and approvals.

We actually are seeing multiple offers and back up offers on properties that are priced to or below the market.

Last week, and into this week with the Bailout proposal and markets totally scared, we are seeing offers. Are there people sitting on their hands, you bet? The point is that the market is not stopped.

The segment of the market that is totally upside down is land. There are great deals with prices off 50% and more from the peak. There were only 2 lot sales in the area, both in Grays Crossing, asking price of $160,000 and $150,000

It is a great time to be a buyer.

Tahoe Donner

This area is in high demand. The number of single family home sales is 23% greater than 2007. Dollar volume is up 16%, average sales price is up 6%. The number of homes sold over $1 million is up 142%. Land is another story.

Lahontan

There were no home sales in September however the market is way ahead of last year. There are 11 closed homes so far this year versus 6 at this time last year.

Old Greenwood/Grays Crossing

No home sales in September. These areas have excess inventory and prices have been reduced dramatically.

Northstar

There were 6 residential sales in September. Sales have really been off year to date and then a fury last month

Glenshire/Sierra Meadows/Prosser/Donner Lake

This market is very price sensitive. There were 18 sales, a little off from seasonal norms, however only 4 above $700,000 and none over $1 million.

Squaw Valley / Alpine Meadows

There were 2 home sales in Squaw and no sales in Alpine.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

530-582-3313

July Market Report

Bob Yoder (Davis Yoder Realty Group) — Mon, 07 Jul 2008 13:19:41 -0500

The Market Monitor

July 2, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The market has experienced a little more activity the last few months versus 1 year ago. So, year to date we are pretty much right on pace with last year. Home inventory levels are slightly higher than last year and recent sales activity has been more concentrated in the lower ranges of the market. The last couple of weeks saw an increase in the number of sales over $1 million.

Land continues to be the most challenged segment of the market with inventory levels, extremely high. Prices are done dramatically and there are lots of good buys.

Historically June has been one of the slowest months for sales in our area. Typically the 4th week of June starts the summer season.

Tahoe Donner

Home sales were slightly above the rate of last year and there were no lot sales.

Lahontan

There were no home sales and 2 lot sales.

Old Greenwood/Grays Crossing

There were no home sales and 2 lot sales in Grays Crossing.

Northstar

There were no home or condo sales.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 10 sales for the area which is slightly below normal. A Donner lakefront home, offered at $3,075,000 went under contract.

Squaw Valley / Alpine Meadows

There was one home sale in Alpine Meadows and no condo sales in either area.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis Yoder Realty Group

Keller Williams Boice Realty

ryoder@truckeeinfo.com

530-582-3313

What about this market

Bob Yoder (Davis Yoder Realty Group) — Mon, 30 Jun 2008 17:14:21 -0500

up, down or sideways

The national marketplace is still very challenged. In a recent Economist magazine report the price drop now is greater than in the 1930 depression, yes greater than the depression. A sobering statistic indeed.

This makes the 1980 and 1990 markets look like a dream. Some places are seeing very fast decreases in the marketplace as lenders take back properties and slash the prices to get them off the books.

One segment of the market that is not afraid to buy is foreigners. As with the stock market for every seller there is a buyer who perceives the purchase to be a good deal.

The buyers are getting great deals and in many instances are purchasing for less than replacement cost.

Prices are back to 2003 levels which gives everyone that did not get in, another chance. The heard instinc does make this a difficult path the follow but usually proves to be great long term decision.

The summer market in Tahoe

Bob Yoder (Davis Yoder Realty Group) — Mon, 30 Jun 2008 17:02:47 -0500

As we approach the summer season it is time to look at where the market is. Inventory is just about the same as last year. It appears we may not see a big run up for the summer season. It definitely is a buyer's market and they are looking for deals. The lending environment is still very challenging, firstly to get a loan and then to actually have them fund. Escrows are taking longer to close due to lending issues.

Most buyers are still sitting on their hands afraid to jump in. The fear is that prices could go lower. Yes they could and yes they may not. Last month we offered an article featured in Time Magazine that showed the folly of waiting if interest rates went up. You actually could pay more in a rising interest rate market even if prices fell another 10%. Well, as we mentioned there were strong signs rates could rise and they have.

Here is a recent post in the Wall Street Journal, "Interest rates on mortgages have spiked in the past 10 days, and there's a serious risk that they're going get a lot higher. If you act quick, you can still find some good deals." With inflation accelerating the chances of higher rates increase. Long term rates are function primarily of expected inflation rates. Currently we have negative real short term rates and a very high level of capital formation in the US market (printing money). These two functions have always led to higher inflation and higher commodity prices. Hence the strong current commodity markets. The interesting thing to note is that the biggest commodity is real estate and since it is in a down cycle it currently is not rising with other commodities. Could this change?

Keller Williams is pleased to announce exciting news, O'Neal brokers in Lake Tahoe is now part of the company. O'Neal is long established company serving Lake Tahoe and Squaw Valley. This will provide you greater access to the Lake Tahoe market area if that is your focus.

Truckee Market Report

Bob Yoder (Davis Yoder Realty Group) — Fri, 13 Jun 2008 11:40:51 -0500

The Market Monitor

June 4, 2008

Dear Client;

Market Overview

Headlines abound with all the problems across the country. They also highlight the number of investors in the market place. Just like the stock market, for everyone selling, there is someone buying. We still believe 2008 will have similar numbers to 2007. Certainly there have been some exceptional deals buyers have negotiated with market prices generally back to 2003 – 2004 levels. Sellers who bought in earlier years have still done exceptionally well with their investment. For first time buyers, this is a second chance with great prices and mortgage rates.

Tahoe Donner

The monthly numbers are very similar to a year ago. There was one lot sale, a golf course lot on Skiview Loop offered at $375,000.

Lahontan

There was one home sale. There were no lot sales.

Old Greenwood/Grays Crossing

There were no home sales and one fractional sale in Old Greenwood. There were no lot sales.

Northstar

There were no home sales and 2 condo sales in the Village.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 14 home sales congregated in the lower end of the market.

Squaw Valley / Alpine Meadows

There were 3 condo sales in Squaw Valley.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Sincerely,

Bob and Nancy

The Davis Yoder Realty Group

Keller Williams Boice Realty

ryoder@truckeeinfo.com

530-582-3313

Staying involved in the Inspection Process

Bob Yoder (Davis Yoder Realty Group) — Fri, 02 May 2008 15:41:08 -0500

First rule of inspecting a home you want to buy is to stay intimately involved in the process, and to leave no stone unturned. If you're busy or traveling during the time period, you have to complete your due diligence investigations by enlisting the aid of a friend you trust to stand in on your behalf -- someone who will keep you well informed as inspections proceed.

Buyers want to be sure they get a good deal on the home they buy. This is especially so if they're buying in a soft market. Whether a property is a good deal depends on its condition, its location and the price paid.

Most buyers don't take the inspection process far enough. They hire a home inspector to do a general home inspection to make sure that all systems are in working order and that there aren't any serious defects that might affect their decision to buy or not.

For some buyers, this constitutes their due diligence inspection of the property. But, in many cases, simply having a home inspection done is not enough to ensure that you don't end up regretting you bought the property.

Most home inspectors recommend further inspections. Some buyers take these admonitions seriously and some don't. A recommendation that is often overlooked is to research the permit history.

If you don't check the permit history, you could find out later, when you want to take out a permit for a renovation, that there are expired permits for work that never received a final approval from the city inspector. You might be required to reinstate the expired permits and finish the job to the building department's satisfaction before you can take out a permit for a new project. This could be expensive, take time, and at the least, be a hassle.

Another item buyers ignore is the cost of routine home maintenance. Some homes cost more to maintain than others. Well-maintained homes will be easier to maintain because you'll have little deferred maintenance to repair.

Ask the sellers for information about how much they pay per year for tree trimming, painting, and servicing house systems such as the roof, furnace and drainage systems. Also ask how much the utility bills run in an average winter and summer month. All of this will factor into the cost of owning the home. Buyers usually focus on the price they'll pay upfront for a house. How much it will cost them over time should also be factored into the total cost of home ownership.

HOUSE HUNTING TIP: Buyers tend to pay more attention to the condition of the home they're buying than they do to finding out all they need to know about the area in which they'll be living. The home you buy is not a good value if you find out a year later that the neighborhood is declining. Make sure you find out if homeowners are moving in or out of the area. If you see a lot of remodeling going on in a neighborhood, this is a good sign that the homeowners plan to stay put. Another good sign is if there are few listings and the ones that come on the market sell quickly. This indicates a high demand for the neighborhood.

You'll also want to find out about crime in the neighborhood, and whether or not there is development planned in the area that might have a positive or negative impact on the neighborhood. And check into the general state of the local economy.

THE CLOSING: Are businesses hiring new employees or issuing pink slips?

Inspections...

Bob Yoder (Davis Yoder Realty Group) — Fri, 02 May 2008 15:39:45 -0500

Inspections are an important part of home buying, but the inspection process can be nerve-racking for both buyers and sellers. Both parties want the deal to go through without a hitch. However, sometimes problems surface that the buyers weren't aware of when they entered into contract.

All houses have defects, even new ones. So it should come as no surprise when defects are discovered. The pertinent issues are: Is there a problem? How serious is the problem? How much will it cost to repair?

A home inspector may have a contractor's license. But, few inspectors also are engineers, architects, and plumbing, heating, roofing, wood pest (termite) and drainage contractors. Nor are they pool, spa, sprinkler or security-alarm specialists. For this reason, most home inspection reports are loaded with disclaimers and recommendations to contact the appropriate specialist to evaluate the severity of a problem.

HOUSE HUNTING TIP: It's highly recommended that buyers follow up with further inspections, and get estimates to repair defects that are a concern before removing an inspection contingency. An inspection contingency protects the buyers, but only if they carry through and complete necessary inspections.

Don't be surprised if a second opinion confuses rather than clarifies an issue. For example, a home inspector might be concerned about the internal mechanics of an older furnace. And, he may not have the expertise necessary to say with confidence that there is no problem. So, he recommends that the buyers consult with a licensed heating contractor.

Just because an inspector suspects there might be a problem doesn't mean that one exists. Several years ago, buyers of an older home in the Oakland Hills east of San Francisco were advised to have a heating contractor check the furnace because the home inspector thought it might need replacing for safety reasons. A furnace with a cracked heat exchanger leaks carbon monoxide fumes that can be deadly.

The buyers called in a heating contractor who inspected the furnace and said that it needed replacing. The buyers were disappointed, but wanted to continue with the sale. So they asked the sellers to share in the expense of a new furnace.

The sellers weren't convinced that the furnace needed replacing. And they didn't want to contribute to the cost of a new one if it wasn't necessary. They contacted a second reputable furnace contractor who inspected the furnace and said it was fine and didn't need replacing.

To resolve the dispute, the buyers and sellers agreed to call in an inspector from the local utility company who would have red-tagged the furnace and put it out of commission if it was dangerous. The verdict was that the furnace was fine and had years of life left.

More and more, sellers are having their homes inspected by professionals before putting their homes on the market. This is done so that sellers have an opportunity to make repairs before marketing or for disclosure purposes.

It is risky for sellers to hide a bad report from buyers. There have been cases where sellers chose not to give the buyers a report they didn't like. Later, the buyers coincidentally called in the same contractor for an opinion who informed the buyers that they had already done a report on the house for the sellers.

Lawsuits have resulted from sellers withholding detrimental reports, although disclosure laws vary from state to state. Check with a knowledgeable real estate attorney for answers to questions about a seller's disclosure obligations.

THE CLOSING: Sellers who aren't pleased with a report should consider getting a second opinion and disclose both reports to the buyers.

How much is a view worth?

Bob Yoder (Davis Yoder Realty Group) — Fri, 02 May 2008 15:38:28 -0500

How much is a view worth? Here is an excerpt from a MSN real estate.

It's a power thing

Real-estate market analyst Ernest V. Siracusa Jr. is experienced in pricing views in Southern California. He works for subdivision builders and developers, advising them on how much their new homes can sell for -- and how much more the same place with a panoramic sweep of the hills can command.

What makes people pay so dearly for a view? It's status, for one thing, says Siracusa, and the quiet and pleasure a view affords. Californians are particularly view crazy, he says. "It goes with the lifestyle of the population that lives here."

Also, you get privacy, an increasingly treasured commodity in a crazy, crowded world. "You don't have anybody behind you," he says. "Being on top of a hill separates you from people below."

There's the sense of freedom, of openness, of achievement, all highly valued by the human spirit. The feeling is, "'I own this place,' versus 'I'm cramped in a sardine can' where everybody's at the same level and you've got fences and houses and everybody's looking down at your yard."

A lot of science, a little intuition

When Siracusa launched The Siracusa Co. in Thousand Oaks, Calif., 35 years ago, he set about establishing some rules of thumb for himself. He analyzed the problem systematically over several years, comparing sale prices of identical subdivision homes (or methodically valuing and accounting for any differences) to arrive at a few guidelines for valuing a view.

"I set out to define this for myself in the real world," he says. "I tried to compare the same floor plans, lot sizes, get rid of the externals that could bias the price. I did it for a lot of tracts in a lot of different communities, looking at sale prices of new homes."

For example, he'd compare the sale price of a house on lot without a view ($314,990) with the price of an identical house near top of a hill with an unobstructed view ($344,990, a premium of 9.5%). Comparing each sale with others with similar types of views, he arrived at premium ranges for each category. The view premiums were remarkably similar in each category, he says.

"What really counts is the (ground level) view from the back, because that's where people live." A stunning view out the front door has little value, in Siracusa's opinion, because no one lives in the front of the house. "You can have a house literally across the street from open space, but a view from the front doesn't count. You give that zero view premium." What matters, he says, is what people see from the kitchen, master bedroom, dining and family rooms, the most-used rooms in a home.

Likewise, Siracusa gives little premium for second-story views. "It would be minimal, if I gave it anything. But take that same view and put it on the ground floor, it's worth a lot."

In high-rise buildings, view premiums rise with the elevator. "There's a status to being higher, and you tend to get a broader view as you go up higher," Siracusa says.

Pricing the view

Siracusa's research has been confirmed over time, at least in new subdivisions, he says. Here are the premiums he sees for homes in new Southern California subdivisions (with houses on each side and views ranging from 45 to 90 degrees):

1% - 2.5%:A home on level ground overlooking unobstructed open space. For example, a house that would otherwise cost $300,000 would go for $307,500 (a 2.5% premium).
3% - 5%: A home just high enough to look over rooftops with a partially obstructed view. "Not a real high-quality view," as Siracusa puts it.
6% - 8%: A good unobstructed view but without much elevation; a home halfway up the hill, for example.
9% - 12%: Atop the hill with an unobstructed view of a city or open space.
15% - 20%: A water view. An outstanding, unobstructed view of a big lake or ocean can command up to 25% more in a development, Siracusa says. And oceanfront can cost 25% to 30% more. For example: A $500,000 house can run $625,000 with an outstanding water view. By the same token, a $1 million house jumps to $1,250,000 or more overlooking a lake.

It's a lot harder to isolate a view's value in older, resale homes. To do that, analysts compare prices of similar homes sold in the same market and time frame, eliminating all other differences but view. That's hard to do. Seemingly comparable houses can be quite different in subtle ways, including the quality of construction and materials, upgrades and maintenance, and those differences affect the price.

Among those who've tried to reduce a view's value to hard cash are Western Washington University marketing and finance professor Earl Benson and his colleagues. In the late '80s and '90s they scoured thousands of assessors' records in Bellingham, Wash., measured homes' distance from the water and performed fancy calculations to conclude that a $200,000 house with no view would sell for $317,600 if it had a full ocean view and $453,280 if it were right smack on the shore of a lake.

On average, Benson says, a full, unobstructed water view boosted a home's price about 60%; the closer the water, the higher the price. Partially blocked views still fetched a 10% to 20% premium. Today, with view properties even scarcer, he says, chances are that view premiums have risen: "The 60% that we estimated in the early '90s may be 80% or 100% today," he says.

Fix it Up

Bob Yoder (Davis Yoder Realty Group) — Fri, 02 May 2008 15:36:46 -0500

Sellers who anticipate losing money if they sell their home may wonder why they should spend a dime fixing the place up for sale. Isn't this throwing good money after bad? Even sellers with plenty of equity in their homes often figure the way to get the most out of the sale is to cut sale costs to a minimum.

This attitude is directly contrary to the notion that the way to make the most money on the sale of a home is by pricing the property appropriately for the market, and by making cost-effective improvements that will result in a higher sale price in a shorter time.

Job applicants don't show up for an important interview in tattered old clothes if they want to make a good impression, particularly if there were plenty of other qualified applicants. Likewise, if you wanted to get top dollar from the sale of a car you would have the car detailed so that it looked its best. The same principal applies to selling single-family homes.

Today, many housing markets have plenty of homes for sale and far too few buyers. For years, buyers competed with one another in order to buy a house. Now, in general, sellers are being forced to compete with other sellers in order to get their home sold.
Consider the competitive nature of the market when deciding if you're going to improve your home before selling it, and how much you'll invest. Keep in mind that the point of fixing up a home to sell is to maximize your return from the sale. Don't waste money on improvements that have little or no value to buyers.

HOUSE HUNTING TIP: Ask your real estate agent or a staging decorator to walk through your home with you for the purpose of determining what fix-up projects you should ideally complete before marketing the property. For example, you might be inclined to replace worn-out carpet. Your agent, however, might advise otherwise.
An agent who specializes in the sale of older homes in the area might recommend refinishing the hardwood floor that is hidden underneath the carpet instead. Buyers looking for charming older homes usually prefer hardwood floors to carpet.

A common opinion expressed by sellers is that it's pointless to fix up a place for someone else whose decorating preferences might be quite different. For example, why not just offer a credit to the buyers so that they can either change the carpet or refinish the hardwood floors -- whichever they prefer?

The problem with this approach is that most buyers have a difficult time imagining how a home will look fixed up. They remember what they see, not what the house could look like with this or that improvement.

Imagine there are five homes listed for sale in an area, all similarly priced, but not all in the same condition. Three houses have old, worn carpet covering most of the floors; one has linoleum over the floor; and the fifth has pristine, recently refinished hardwood floors. Most buyers will gravitate to the home with the beautiful hardwood floors.

The best houses in the best condition and offered for the best price usually sell quickly. A fast sale is important to some sellers in this market. The sooner your home is sold, the sooner you stop paying mortgage payments, property taxes and various maintenance costs.

THE CLOSING: In areas where prices are declining, a quick sale can result in a higher price than might be attainable in a few months

April 2008 Market Update

Bob Yoder (Davis Yoder Realty Group) — Fri, 02 May 2008 15:31:24 -0500

The Market Monitor

May 1, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The market continues to chug along. Buyers have done very well with their purchases as we have seen some exceptional deals and homes selling at less than replacement cost and land selling at a tremendous discount to several years ago.

The number of closed sales is down 30%, the dollar volume down 25% and the median sales price for residential up 8%.

The current buyer activity is normal for this time of year and things will be quiet for the next 2 months.

Tahoe Donner

The number of home sales was pretty close to the 2007 number and inventory is now pretty much the same as 2007. There were 3 sales over $1 million and below $1.2 million. The sales to list ratio is still very low so no indications of any changes in the market.

There was 1 lot sale.

Lahontan

There were no home sales and 1 lot sale at $255,000.

Old Greenwood/Grays Crossing

There were no home sales and 2 lot sales in Grays Crossing.

Northstar

There were 3 home sales and 1 condo sale. All were in the lower price ranges. Additionally there were 2 Ritz Carlton sales

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 14 residential sales with the highest at $610,000 and the median price at $424,000. So demand is in the lower end.

Squaw Valley / Alpine Meadows

There was 1 condo sale in Alpine and no sales in Squaw.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

530-582-3313

March 2008 Market Update

Bob Yoder (Davis Yoder Realty Group) — Wed, 02 Apr 2008 16:53:46 -0500

The Market Monitor

April 3, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The market continues to drift lower as measured by sales volume. There were a total of 60 residential properties go under contract in March. This equates to a 20 month supply of residential properties. While this is a dangerous number to use for our marketplace, as there are extreme seasonal changes in the market, it does give a picture of what is going on. This is a low number for this period especially since March included Easter this year and ski conditions and travel weather were excellent. Certainly there were some extreme financial market conditions with the unraveling of Bear Stearns and the Fed coming to the rescue of the financial system.

On the positive side, increases in conforming loan amounts, very low mortgage interest rates and strong interest in the upper end market are very positive. Several Tahoe lakefronts sold with the highest at an asking price of $25 million.

The lower end of the market, which has been anemic, saw most of the activity.

This market continues to be an exceptional buyers market.

Tahoe Donner

There were 13 residential sales which is historical low for this period. There were 2 lot sales.

Lahontan

There was one home sale and no lot sales.

Old Greenwood/Grays Crossing

There were no home sales and one closing that indicates tremendous opportunity for buyers with regard to price. There were no lot sales.

Northstar

There was one home sale and one fractional sale in the Northstar Club. There was one lot sale.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 17 residential sales concentrated in the lower price range with a median value of $447,450.

Squaw Valley / Alpine Meadows

There was one home sale in each of Alpine and Squaw and 3 condo sales in Squaw.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

530-582-3313

February 2008 Tahoe Donner Comparisons

Bob Yoder (Davis Yoder Realty Group) — Thu, 06 Mar 2008 14:05:25 -0600

February Comparison

	Tahoe Donner Home Sales to Feb 29, 2008

YEAR-TO-YEAR COMPARISON REPORT	Single Family
									Current
	# Sold	% Chg	Volume Sold	% Chg	Average Sale	% Chg	Median Sale	% Chg	# For Sale
	RESIDENTIAL		$		$		$


Current Period 2008	21		17,890,000		852,258		755,000		159
One Year Ago 2007	33		23,336,557		704,138		700,000		131
Increase/(Decrease)	-12	-36%	-5,446,557	-23%	148,120	21%	55,000	8%

Sales over $1,000,000 in 2008	7
Sales over $1,000,000 in 2007	1
Increase/Decrease	600%

Sales $ Ratio
Average days on market	117
Market Percentage of Sales to List	95.97%
Most Buyer Representation Sales by Agent	Davis Yoder Group
Most Seller Representation Sales by Agent	Davis Yoder Group

Most sales in Tahoe Donner by Company	Keller Williams	37%	of total
Next Highest Company		18%	of total

1031 exchanges

Bob Yoder (Davis Yoder Realty Group) — Thu, 06 Mar 2008 14:03:37 -0600

Rev. Proc. 2008-16: Safe Harbor for Exchanges of Vacation Homes and Conversions to or from Personal Residences

This revenue procedure provides a safe harbor under which the IRS will not challenge whether a dwelling unit qualifies as property held for productive use in a trade or business or for investment under Section 1031. This revenue procedure follows Moore v. Commissioner, T.C. Memo. 2007-134 (the recent vacation home case) and the Treasury Inspector General for Tax Administration (TIGTA) report “Like-Kind Exchanges Require Oversight to Ensure Taxpayer Compliance”(9/17/07), which called for more IRS guidance on vacation home exchanges. The safe harbor, while specifically addressing the vacation home issue, also indirectly addresses the issue of converting a principal residence into qualifying relinquished property prior to an exchange, or converting a replacement property into a personal residence after an exchange.

It is just a safe harbor. An exchange may still fall outside the parameters and meet the statutory requirements, but you should expect heightened scrutiny in such a case. The safe harbor is effective for exchanges occurring on or after March 10, 2008.

Relinquished Property. A dwelling unit qualifies as relinquished property in an exchange if it is owned by the taxpayer for at least 24 months immediately before the exchange, and, in each of the two 12-month periods immediately preceding the start of the exchange: (i) The taxpayer rents the relinquished property to another person at a fair rental for 14 days or more, and (ii) the taxpayer's personal use of the relinquished property does not exceed the greater of 14 days or 10 percent of the number of days during the 12-month period that the relinquished property is rented at a fair rental.

Replacement Property. A dwelling unit qualifies as replacement property in an exchange if it is owned by the taxpayer for at least 24 months immediately after the exchange, and, in each of the two 12-month periods immediately after the exchange: (i) The taxpayer rents the replacement property to another person at a fair rental for 14 days or more, and (ii) The taxpayer's personal use of the replacement property does not exceed the greater of 14 days or 10 percent of the number of days during the 12-month period that the dwelling unit is rented at a fair rental. If a taxpayer reports a transaction as an exchange on the taxpayer’s federal return expecting that the replacement property will meet the qualifying use standards, but the replacement property does not meet the qualifying use standards, the taxpayer, if necessary, should file an amended return and not report the transaction as an exchange.

Broad Definition of Personal Use. The taxpayer is deemed to have used a dwelling unit for personal purposes if used by: (A) the taxpayer or any other person who has an interest in such unit (including a tenant in common), or by any member of the family of the taxpayer or such other person; (B) by any individual who uses the unit under an arrangement which enables the taxpayer to use some other dwelling unit (whether or not a rental is charged for the use of such other unit); or (C) by any individual if rented for less than a fair market value rental. A taxpayer may rent the dwelling unit to a family member if the family member uses it as a principal residence (and not a vacation home) and the family member pays fair market rent. Some taxpayer usage may be allowed for repairs and annual maintenance too. See Section 280A(d)(2) and (3).

“Fair market rent” is determined based on all of the facts and circumstances that exist when the rental agreement is entered into, and all rights and obligations of the parties to the rental agreement are taken into account. A “dwelling unit” is real property improved with a house, apartment, condominium, or similar improvement that provides basic living accommodations including sleeping space, bathroom and cooking facilities.

Comment: How Does the Taxpayer Meet the Safe Harbor for a Vacation Home and Principal Residence? (1) Limit Taxpayer Use. The taxpayer (any any related parties under section 267, other than as a principal residence) can only use the property for 14 days per year (or 10% of the rental period if greater) for the two years prior to the exchange. The taxpayer may use the dwelling some additional days for repairs and annual maintenance too, but be prepared to prove actual work done. (2) Rent It Out. The property also must be rented to unrelated party for at least 14 days per year, but it does not have to be rented more than 14 days per year.(Alternatively, it can be rented as a principal residence to a related party).

Therefore, a taxpayer can take a personal residence or vacation home, rent it to a friend for 14 days per year for two years and then exchange out of it, with no question about whether it’s held for investment. All rent must be fair market and the taxpayer should have evidence to prove this. Likewise, the taxpayer can do the same thing on the replacement property for the two years after the exchange (and this must be done if the replacement property is also the taxpayer’s vacation home or future principal residence).

February 2008 Truckee-Tahoe Market Update

Bob Yoder (Davis Yoder Realty Group) — Thu, 06 Mar 2008 13:40:02 -0600

The Market Monitor

March 4, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The market continues on the path it was last year as far as sales volume. The difference this year is in the high end. Sales of homes over $1 million have been strong. Of the 72 single family home sales in February, 20 were over $1 million 8 were over $2 million.

The big money is still strong on our market.

Tahoe Donner

There were 20 homes in February with 5 over $1 million. The highest asking price was $1,375,000. There 2 lot sales.

Lahontan

There were 3 homes in February. There were no lot sales.

Old Greenwood/Grays Crossing

There were 2 home sales in Old Greenwood and none in Grays Crossing. There were no lot sales.

Northstar

There were 3 home sales and 2 condos.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 19 home sales in the area for February.

Squaw Valley / Alpine Meadows

There were 5 condos and 1 home sale in Squaw. This is a big change for Squaw which has been very slow. There was one home sale in Alpine.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

530-582-3313

January 2008 Market Update

Bob Yoder (Davis Yoder Realty Group) — Fri, 11 Jan 2008 13:33:33 -0600

The Market Monitor

January 4, 2008

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

The year 2007 will be well remembered as a major shift in the national real estate market. While the market actually peaked in 2005 in takes many years for the market to settle out and see just where it is at. The one thing our market has not experienced relative to other areas in the country is a significant increase in inventory.

Nationally, inventory levels are at all time highs. This creates a big drag on the market. The most important number in 2008 for our market is the inventory levels. All barometers are pointing to significantly higher inventory levels. We end the year at the highest level in 6 years, December saw an inordinate number come on the market and there is a pool of sellers that will be putting their properties back on the market in 2008.

This would mean we could see further softening in prices.

For 2007 we were estimating that the number of sales would be about the same as 2006. In fact it is ending up just this way. That equates to 41% of the properties selling that were offered for sale in 2007. We would expect this percentage to actually be lower in 2008.

The lot resale market is very soft and there is no reason to think this will change for several years.

On a positive note, we just returned from the Salt Lake City area and those resort markets, Park City, Deer Valley and Ogden Valley make our properties a bargain. Our prices are substantially less especially in the land department. We saw lots of activity from interested buyers. One dynamic they have which we do not, is a more diversified buyer base. There are buyers from all over the country, Europe and even Dubai. The Delta hub in Salt Lake City certainly has a bearing.

With the Ritz coming to our area and the Hyatt underway we think we will see a more diverse buyer pool in the future.

With our warmer winter weather, even more ski resorts, lakes etc., these buyers are going to find our market to be very desirable.

Tahoe Donner

There were only 4 sales in December which even by historical standards is quite low. There were 2 lot sales, one for $199,000 that had an original asking price of $325,000 and a golf course lot on Swiss.

Lahontan

There were no home sales and there was 1 lot sale.

Old Greenwood/Grays Crossing

There were no home sales. There were 3 lot sales in Grays Crossing, all with an asking price of $300,000. The original purchase price on the lots was $550,000 to $625,000. One owner had all the lots.

.Northstar

There were no home sales and 2 condo sales in the Village, one at $2.6 million.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 11 home sales with the highest sale at $899,000.

Squaw Valley / Alpine Meadows

There were 2 home sales in Alpine Meadows, one home sale in Squaw and 3 condo sales in the Village.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

Thank you for your support.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty