Lake Forest Glen Townhomes

For years the Lake Forest Glen townhomes have been appreciating and enjoying market stability. In the last 12 months there has only been 1 sale in the complex and that was in December of 2007 and currently there are 1o units for sale. Without any sales in 2008 the Lake Forest complex is considered to have an oversupply of inventory and prices have been falling within the complex.

After a review of market data over the last 24 months we are seeing condo and townhome prices down 12% year over year, the number of sales are down 44%, and the average days on market are up 31%. In the last 12 months there have only been 9 condo/townhome sales in MLS area 2, 3, and 4(Agate Bay, Carnelian bay, and Tahoe City) and currently there are 21 units for sale which is going to pull prices down further.

We are seeing units in the Lake Forest Glen complex that used to fetch prices in the $500K+ range now being listed for the mid $400K's and now there are units that are in the sub $400K price range that are not selling.

MLS areas 2, 3, and 4 used to be the most stable areas around the Lake due to the proximity to amenities, Tahoe City, and ski resorts, but now we are seeing that no neighborhoods are immune to the current market/economic conditions. It just took about a year for these neighborhoods to suffer where other neighborhoods have been in a declining state for over a year.

It appears that until national economic conditions strengthen we are going to see prices continue to tumble making it more difficult for those who purchased homes within the last 2 years to refinance or sell there properties.

It Just Got Worse

Just when you think you have heard all the news about the economy, housing market, and politics we learn that East West Partners (developers of Old Greenwood, Gray's Crossing, etc.) have just let numerous employees know that they have been laid off or are going to be laid off in the near future. EWP is letting these employees go due to decreased revenues and a slow real estate market.

This is not good news for the people of Tahoe/Truckee that have worked hard for years to make sure that the projects that EWP have developed have been successful. These people are now going to have to find new jobs in the Tahoe market which can be challenging to say the least as full time work in this area is very limited.

What does this mean for the community? This means that with fewer jobs in the area that fewer full time residents will be able to make a living in this beautiful area. When that happens more homes come on the market for sale and this increased inventory coupled with a struggling economy can lead to home prices falling.

AAG, Inc. wishes all those that have been laid off recently the best of luck finding new work in the Tahoe area or abroad.