You may know that Lake Tahoe has become one of the most popular destinations in the country. But have you thought of it as an investment opportunity? Even in challenging real estate market, South Lake Tahoe reigns as one of the best California-informed property investment areas.

In the dynamic market of Lake Tahoe real estate, inventory is approximately double that of 2005. Average prices are slightly lower and sellers are negotiating more than ever. It is a market Shoppers!

Adding to the attractiveness of the area, the word is spreading that the next phase of redevelopment of South Lake Tahoe is underway and gaining national attention. Most importantly, however, is the enthusiasm following the purchase of Vail Mountain South Tahoe Heavenly Ski Resort. It is almost sure that the lowest values of today will not last long.

The following reasons are why Lake Tahoe real estate is ready for the investors.

1) Large Inventory = More options buyers. From 26 August 2007, had 586 houses for sale with 56 currently in storage. This inventory is considerably higher than the 366/96 reported in August 2005 (although slightly lower than the 594/46 reported in August 31, 2006).

2) Affordable Prices. Affordability is South Lake Tahoe charm. Compared with other international resort areas, the median home price South Lake Tahoe $ 463,000 is a fraction of those found in Aspen, Colorado ($ 1,199,700), Vail, Colorado ($ 791,000) from Park City, Utah ($ 605,000), and our neighbor Tahoe City ($ 1,001,500). Similarly, compared with the median home price in California of $ 586,030, South Lake Tahoe property values are bargains complete with lake, mountain, blue sky and pristine as seasonal bonuses.

3) Market = buyer bargaining power. Supply, demand, and consumer confidence have played a huge role in the buyer bargaining power. As is common in the market of South Lake Tahoe real estate, when the summer begins to decline, sellers are more eager to sell. In short, they want to close escrow before the first snowfall. While the inventory is up (more homes for sale), no more space for buyers to negotiate the sale price and other accommodations. An example of this type of leverage, in 2005 the average household sold approximately 98.5% of list price. Today, the average home is selling for 95.8% of original list price.

4) Redevelopment expansive. After many years of planning, the dream and hope, the next phase of the redevelopment in South Lake Tahoe phase is underway. Rundown motels, shops and similar structures have been demolished to make way for future developments. Some examples of future developments include a 71,000-square-foot convention center and two condominium hotel with boutiques, entertainment and proximity to almost all the area south of Lake Tahoe Stateline. Developers are anticipating this project to approximately 180,000 visitors per year.

The time is ripe to invest in South Lake Tahoe Realty

The real estate values South Lake Tahoe have generally escaped the dramatic decline that have adversely affected the various regions of the State throughout the year. According to Leslie Appleton-Young, chief economist for the California Association of Realtors ®, "With credit drying in recent weeks, we expect further weakness in sales during the coming months. "He continued adding that the decline in sales will be driven by both tighter underwriting standards because of the crisis of sub-prime mortgages and the adverse psychological effects of news and information on the increases in foreclosures and mortgage defaults.

At the same time, a door seems to have opened in South Lake Tahoe. According to a recent article in Inman News, one of five economists surveyed expected a "significant" recovery in U.S. markets housing before the second half of 2008. About 38 percent expected a recovery in the second half of 2008, while the 42 percent said housing markets will not return until 2009 or later. Our recommendation is to take advantage of the opportunities presented in the coming months.

For us, both personally, and professionally, we have found that owning Lake Tahoe real estate is a far more nice to see growth in their investments compared to other options. When given the option of sitting in a lake beach and swishing Down World-class ski slopes versus pull our hair watching the stock market, our choice is clear.

Theresa Souers, one of Lake Tahoe’s “Ten Most Influential Women” and South Lake Tahoe’s 2006 Realtor of the Year, is founding partner of The Pinnacle Real Estate Group, your one stop shop for Lake Tahoe real estate investments.

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