President’s Plan to Help Troubled Borrowers Referenced in State of The Union Address
January 10, 2012
Below is an excerpt from a recent CNBC article entitled President Obama Proposes Mortgage Refinances for ‘Responsible Borrowers’. Click on the link to view entire article.
“After several largely ineffective programs to help troubled borrowers and after fruitless attempts at budging the hard-line conservator of Fannie Mae and Freddie Mac, President Obama is proposing a brand new refinance program for borrowers who are current on their mortgages, regardless of who owns their loan; the catch is that this one has to go through Congress. ’I'm sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. No more red tape. No more runaround from the banks,’ the President announced in his State of the Union address. Unlike previous efforts in the refinance space, including a recently revamped and expanded government program for borrowers who owe more on their mortgages than their homes are currently worth, this plan would not be limited to those with loans backed by Fannie Mae and Freddie Mac, according to senior administration officials. The two mortgage giants own or guarantee about half of the nation’s mortgages. It would be open to all borrowers current on their loans.
The Obama administration is offering few details, promising more in the coming weeks, but several sources say the plan is to ask Congress to allow the government mortgage insurer, the Federal Housing Administration (FHA), to back refinances of underwater mortgages. No estimates were given as to how many borrowers such a plan could potentially help, only that this would be a voluntary, borrower-initiated plan, and not a blanket refinance of all borrowers. The costs, according to administration officials, would be modest, and the President would request that a portion of his financial crisis responsibility fee offset any of those costs, so there would be no addition to the federal debt. ’A small fee on the largest financial institutions will ensure that it won’t add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust,’ Mr. Obama added. Loan servicers could be faced with a flood of applications and could have to add resources to handle it all, but officials say the opportunity to generate revenues from the refinances would be incentive enough. Still many servicers have balked at the idea ofmass refinancing, as the new loans could present more risk and less reward.
The idea is to remove the barriers and ‘frictions’ that have kept many borrowers out of refinancing to historically low rates. Some of those include high levels of negative equity, loan level price adjustments, loan origination dates, put-backs on loans that default, and borrower qualifications. Then there is the very basic problem of politics. Whatever the details of the plan are, Republicans, despite the fact that they have been calling for more refinances, are unlikely to hand President Obama a popular victory on the eve of a presidential election. They may also oppose anything that makes Fannie Mae and Freddie Mac bigger, when the two are allegedly winding down.”
Lake Tahoe Real Estate Market Update 2011
January 8, 2012
Here are some additional real estate numbers comparing the real estate market in 2010 compared to 2011 for the Lake Tahoe Real Estate Market. Numbers represented are: Sales Volume, Units Sold, & Median and Average Price.
2011 Year End Stats – Lake Tahoe
Here is the press release we received from our broker for the Lake Tahoe Real Estate Market 2011:
Tahoe Home Sales Stats Holding Steady
Zephyr Cove, Nev. (Jan. 5, 2012) – Year-end home sales at Lake Tahoe are holding steady compared to 2010 with some indicators on the rise, according to a quarterly report released by Lake Tahoe-based real estate firm Chase International, which notes a one-percent increase in units sold around the lake.
The National Association of Realtors recently reported that existing home sales rose again in November and remain above a year ago, and the latest Tahoe housing market sales figures concur with this national trend. In fact, while real estate sales and prices took a slight dip around the lake overall, the East Shore market segment saw a one-percent increase in median home price ($575,000) and a 35-percent jump in average price ($1,286,924). Volume sold on the East Shore was up 26 percent, while the number of units was down seven percent.
Although the number of units sold is up slightly, the median price of a home in Lake Tahoe is down thirteen percent to $365,000 from 2010’s year-end numbers. The average home price fell 14 percent to $607,683.
“High end home sales on the East Shore helped buoy the Lake Tahoe market,” said Susan Lowe, corporate vice president for Chase International. “It definitely is still a buyers’ market as average and median prices have continued to fall but with units sold rising we believe the market is strengthening.”
Truckee reflects this same trend, seeing a two-percent increase in units sold and a 17-percent rise in units sold for less than a million. The median price of a home in Truckee is $438,166 (down 10 percent) and the average price is $562,811 (also down 10 percent).
The condominium market around Lake Tahoe experienced a six-percent decline over 2010 in units sold. However, for units sold for more than $500,000, a notable 29 percent jump occurred. Tahoe City experienced the most pronounced increase in sales over 2010 sales figures, with a three-percent rise in units sold and up 50-percent in units sold for over $500,000. South Lake Tahoe saw a 21-percent increase in overall volume sold, with median and average prices rising 14 and 69 percent, respectively. The median price of a condo in Lake Tahoe is $262,000 (down eight percent) and the average price is $348,868 (down 12 percent).
Lake Tahoe & Reno Real Estate Stats Year End 2011
January 7, 2012
We have just received the Lake Tahoe Real Estate stats for 2011. Areas included are: Incline Village, Lake Tahoe East Shore, Tahoe City, South Lake Tahoe, Sparks, Reno, Truckee & Carson Valley. Sales are broken down by price banding to show where the majority of real estate sales took place in 2011.
2011 Year End Price Banding Charts
Here is the press release we received from our broker for Reno:
Reno-Sparks Home Sales Signify Buyers’ Market
RENO, Nev. (Jan. 5, 2012) – The Reno-Sparks real estate sales numbers for 2011 indicate that the local market is holding steady when compared to year end home sales from one year ago, according to a quarterly report released by real estate company Chase International which has a flagship office located on Damonte Ranch Parkway in Reno.
The National Association of Realtors recently reported that existing home sales rose again in November and remains above a year ago, and the latest Reno-Sparks housing market sales figures concur with this national trend. In fact, while real estate sales and prices continue to see declines, the year-end Chase report indicates a ten-percent jump in units sold in the Reno, a nine-percent increase in Sparks and an 11-percent rise in units sold in Carson Valley.
Although sales are up, the median and average prices continued to drop. The median price of a home in Reno-Sparks is $154,250 (down 11 percent) and the average price is $192,001 (down ten percent). The median price of a home in Carson Valley is $190,000 (down 13 percent) and the average is $243,685 (down ten percent).
The sales and figures of the Chase International year-end report are compared to year-end statistics of 2010 and include all sales in these areas from January 1 through December 31, 2011.
A substantial increase can be noted in homes sold for more than $1 million. Reno saw a 30 percent jump in the number of homes sold for more than a million and the Carson Valley market rose by 50 percent in regard to its sale of homes over $1 million.
“What’s notable about the Reno, Sparks and Carson Valley markets is that the number of units sold is up, indicating increased activity and positive signs the market is strengthening,” said Sue Lowe, corporate vice president for Chase International. “The return of the high-end buyer also indicates the market is turning around.”
Schaffer’s Mill Winterfest
December 1, 2011
Looking for some fun events at Lake Tahoe this holiday season? Schaffer’s Mill (former Timilick) is having their Winterfest this upcoming weekend (December 2-4, 2011). Activities include cocktails Friday evening, fun in the snow on Saturday, and a brunch on Sunday. See below for more information.
GUARANTEED TO GET YOU
I N T H E H O L I D A Y S P I R I T
Winterfest at Schaffer’s Mill
There’s nothing like surrounding yourself with the sights and sounds of winter to truly get into the holiday spirit. Gliding down an old-fashioned sledding hill, enjoying warm, festive holiday drinks with friends or cruising the slopes of Northstar….all these activities are part of the Schaffer’s Mill “Winterfest” and are guaranteed to kick off your holiday season in style.
So come and join us, December 9th-11th and take advantage of not only the early winter snowfall, but our special Discovery Visit pricing. For just $399, our Winterfest Weekend includes:
A Friday cocktail reception at the Martis Peak Mountain Lodge
- Featuring Holiday beverages, Napa Valley wines and heavy hors d’oeuvres
- Kids of all ages can design homemade ornaments and holiday cookies
Saturday In the Snow
- A morning tour of the furnished, model Mountain Lodges at Schaffer’s Mill
- Family sledding on the new Schaffer’s Mill Sled Hill
- Hot beverages and warming huts for adults and children to enjoy
- Afternoon skiing and evening ice skating at NorthStar also available*
Sunday Brunch
- Brunch at Moody’s Bistro in downtown Truckee
All this, including two nights accommodations, for only $399 per couple.
Space is limited, so please call now to book your Schaffer’s Mill Winterfest Discovery Visit. And don’t forget to ask about our special incentives and leaseback options, ending on December 31st, on our model Mountain Lodges. This is a $70,000-$100,000 savings and only three remain!
RSVP: 530.582.9026
*Discounted Ski passes and ice skate rental are available for an extra charge
Lake Tahoe Real Estate Mid Year Stats 2011
July 9, 2011
The following graph shows the Lake Tahoe Real Estate Market for the first half of 2011. The numbers compare sales in 2010 with 2011. There was a slight increase in some of the sales numbers which is encouraging to see!
2011 2nd Quarter Stats Lake Tahoe
Here is the press release from our broker:
Tahoe Home Prices See Slight Increase
LAKE TAHOE, Nev. (July 6, 2011) – Median home prices in Lake Tahoe stayed relatively flat throughout Lake Tahoe, with substantial increases in East Shore prices, according to a midyear report released by Lake Tahoe-based Chase International.
The median price of a single-family home in Lake Tahoe is up two percent to $540,375 and the average price is up nine percent to $962,705. Those numbers were boosted by a 20 percent increase in median home price on the East Shore ($625,500) and a 67 percent increase in average price ($1,565,642). The report compares home prices and sales from January 1 through June 30, 2011 to the same time period of 2010. Overall sales volume in Lake Tahoe was down nine percent and units sold dipped four percent.
“We had some strong sales and increases the first quarter but saw a decline in the second quarter of this year,” said Sue Lowe, corporate vice president for Chase International. “I think we are still bouncing around the bottom of the market.”
Tahoe City saw a three percent increase in median home price ($475,000) and a 15 percent drop in average price ($681,634), caused mostly by a seven percent boost in sales of homes over a million and a 27 percent drop in homes sold for less than a million.
Average and median prices were down in both South Shore (ten and 12 percent, respectively) and Incline Village (11 and five percent). Sales of million-dollar homes were down in all areas of Lake Tahoe, except the East Shore, which experienced a 71 percent jump in sales of more $1 million.
Condo sales around the lake were up nine (volume) and 13 (units) percent, with Incline Village seeing the biggest jump in units selling for more than $500,000. Tahoe City experienced a 136 percent increase in units sold for less than $500,000.
The average price of a home in Truckee is down 13 percent to $534,313 and the median is down 14 percent to $433,000. Sales volume was down nine percent but units sold was up four percent, reflecting a nine percent increase in homes sold for less than a million and a 33 percent decline in homes sold for more than a million.
