Tahoe In Turmoil

Since the fall of 2005 appraisers in the Tahoe/Truckee area started to notice a new trend as home prices went from a feverish upward momentum to a a slowdown. Nobody knew whether the slowdown would last a few months, a few years, or a decade. As we enter one of the worst financial crisis' since the great depression it appears that until the global credit situation rights itself we are going to be in a period of instability.

I remember talking to some Realtors in 2004 when house pricing in the Tahoe area was going through the roof and I was constantly asking when they thought a slowdown would take place. Some of these Realtors stated that it would be a long time due to supply constraints and that possibly Tahoe is one of the areas of the country that would not slow down. In 2004 we were seeing home appreciation of 1+ percent on a monthly basis. For appraisers it was hard to appraise home purchases because of the limited availability of comparables. If an appraiser were to use a comp that was 2 months old it would support a lower value for the purchase due to appeciation in the market. It was a hard time to put the pieces together and support value.

In the summer of 2005 we started seeing the dream of a Tahoe home fall to the wayside for more and more people as house pricing started to fall out of line with demand. A basic ranch style house with a 2 car garage in Glenshire was selling for over $500,000! By the fall of 2005 it had started, people were sitting on the sidelines and home prices began to fall. This started a ripple effect through the Tahoe economy which is more like a tidal wave today. The Tahoe economy relies heavily on the real estate market, whether it is construction, sales, appraisals, property management, etc. and when there is a slowdown it is felt by many.

Today we have seen the start of one of the most destructive financial crisises in modern history and we are unsure of what the future holds. A bailout of $700 billion has been passed, but this only accounts for about 7% of the total mortgages out there and does little to help "Joe 6 Pack" that is struggling to make ends meet. It is going to take job creation and consumer confidence to bring us back to where we need to be to have a healthy economy. For many of us that meens that we are going to have to do what it takes to make ends meet. Whether that is taking a second job, cutting back all non esential costs, eliminating travel, or other cost saving measures.

I still feel that Tahoe is one of the best parts of the country to own a home or second home. The recreation is world class, the people in this area are vivid and full of life, and if you can make it here you can make it anywhere, sorry New York. Alpine Appraisal Group, Inc. is dedicated to helping their clients meet their real estate goals with dedication to honesty and integrity. If you ever want to go over market information please contact us, we would be glad to answer your questions, and help you in this time of instability.

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.

Alpine Appraisal Group, Inc. Helps Fight Muscular Dystrophy

On June 27th, 2008 Alpine Appraisal Group, Inc. and Dave Westall teamed up to help the Muscular Dystrophy Association (MDA) and Jerry's Kids at the 2008 MDA Lockup at the Fifty Fifty Brewing Co. in Truckee, CA. Dave was placed in "jail" at the Fifty Fifty Brewery and had to raise bail in order to be released.

The event was very successful and the 50 participants were able to raise $27,000.00 that will be used by the MDA to send kids with Muscular Dystrophy to summer camp, help with specialized equipment, support sessions, and research. With the help of friends, family, and business associates Dave Westall was able to raise $980.00 to help the MDA. Dave would like to thank the 27 people who donated for their generosity and kindness.

If you are interested in learning more about the MDA and Jerry's Kids or would like to help those with Muscular Dystrophy please visit: www.mda.org