It's been more than a decade since a South Lake Tahoe home was this affordable.
(Lake Tahoe Real Estate Blog / August 10, 2011 / Richard Bolen)
Lets look at interest rates first. MOrtgage interest rates after the big debt debate debacle!
Online today a 30-year fixed loan w 20% down is being touted at 3.875%, which is unheard of (here). Digging deeper, most of these sensational online rates involve a point or two added into the mix, a loan over $200,000 and a huge FICO to boot. In other words, one is pretty much not going to get a South Lake Tahoe house today with a loan under 4%.
One can get that South Lake Tahoe house today, however, at a mortgage interest rate of 4.125%, which is a lower rate than anything we have seen in decades, but this rate will likely involve a point in the mix too. A point being 1% of the purchase price added into the loan. In other words, a point on a $200,000 loan would be an extra $2,000 given to the lender to get a rate that low.
If one does not add a point into the mortgage loan mix, it is possible to get a South Lake Tahoe house today at a mortgage loan rate of 4.25%, again historically low, and damn close to the lowest rate we have ever seen (4.12% appeared once last November for a few hours!).
More Price Decline :
The median sold price in South Lake Tahoe, CA today is $265,000, which is based on all home sales in the last 180-days, not including the Tahoe Keys. (here, for data with the Tahoe Keys, and here for the Tahoe Keys itself.)
Based on the same criteria, lets track the South Lake Tahoe, CA median sold price at various times since the first of the year:
- On January 1, it was: $285,000
- February 1, it was $280,000.
- March 15, it was $280,000.
- May 13, it was $285,000.
- June 1, it was: $285,000.
- July 7, it was: $274,500.
- Aug 8, today, it is $262,500.
What this means is South Lake Tahoe, CA median sold house values have declined 7.8% since the beginning of the year.
The Bottom Line :
The South Lake Tahoe, CA home buyer, if they are going to get a loan, has not seen a better buying condition in our resort in a very, very long time. Think at least a decade, if not more.
Previous Lake Tahoe Real Estate Blog posts:
Aug 3, 2011: Plunging Interest Rates
Jul 12, 2011: A Heads up on Mortgage Bank Relief
May 5, 2011: Interesting Interest Rates
Jun 11, 2010: Talking Low Interest Rates
April 10, 2010: An Interest in Interest Rates
April 27, 2010: You Still Get a 5% Can Mortgage?
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