How many short sales in Tahoe?
I was thinking of a topic to write about today and a question came to mind, “What part of Tahoe has the most short sales?”
What is the benefit of knowing, you may ask. Good question. Hmmmm. I have only one (possible) good answer to that question — distressed properties (short sales and foreclosures) when it begins to invade an area (if it reaches 20% or more of active for sale listings) will drag home prices down.
What’s interesting with this phenomenon is in some ways it could transcend basic economic rules like supply and demand. What I mean is even though there’s strong housing demand, prices can still suffer. This is already happening in Reno Real Estate. This largely has to do with the unpredictability of how financial institutions (banks) sell their distressed inventory.
They are unpredictable because they’re primarily looking out for themselves ( and shareholders, of course) and not the community’s. (To be fair, when banks hold back on releasing their foreclosures, it could potentially be beneficial if demand sustains itself.) They adjust with market fluctuations and government regulations. So banks could do whatever they please like holding off foreclosures so current inventory could be sold at a higher price or actively encourage programs like loan modification — which could later backfire (this is what pundits call “shadow inventory”.)
So without further ado, here are the areas which has the most short sales:
(Note: data from Northern Nevada Regional MLS)
44 Active Tahoe Short Sale Listings
- 20 Stateline NV Short Sales
- 10 Incline Village Short Sales (I’m sure there’s more — if you check IVMLS,)
- 7 Zephyr Cove Short Sales
- 5 Glenbrook
- 1 South Lake Tahoe (check STAOR for more short sale listings)
- 1 Crystal Bay
Here are the short sale homes if you want to look at individual listings:
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