Patience is required in the sluggish home market

With a cooling housing market entering the winter season, patience and timing may be the key words that bring buyers and sellers together on the South Shore.

The National Association of Realtors, supported by California's version, predicts existing home prices will fall by about 9 percent this year.

"But take heart - the worst may be over," David Lareah, NAR chief economist, said in a recent realtor.org bulletin. He cites home price declines as reasons to help bring buyers back into the market.

The slowing on the South Shore runs parallel with the nation and state in the last few years - and that's somewhat reflective of homes staying on the market longer. In 2005, the average was 92 days. A year later, it takes over a month more to sell.

A full correction will take getting the sellers' prices to meet the buyers' demands. The current median of homes listed is about $75,000 higher than the average of homes sold. It's still a buyer's market - if those seeking America's biggest dream seize a good opportunity, the sellers become more realistic in their pricing and agents work smarter and harder.

With all experts anticipating the market correction to come to an end in 2007, home prices may be on the rise, according to NAR. So they say, now's the time to buy - especially with mortgage interest rates situated at near 40-year lows. For example, the average 6.40 percent, 30-year fixed rate recorded last month amounted to less than half what it was 25 years ago.

"We're hoping to see things rebound. Now's the time for the first-time home buyer. Otherwise, when prices go up, they may not be able to afford (another surge)," said real estate agent Michelle Keck, who works for Deb Howard & Co.

The company was celebrating Keck's $4.9 million sale of a Zephyr Cove home on Pine Point Friday at the South Tahoe Association of Realtors installation dinner.

"These just don't come around every day," she said.

Keck has noticed the advantage of dealing in a unique resort market where those investing in their second, third, fourth and even fifth house don't necessarily quibble over $10,000.

"They tend to quibble over $100,000," she said. "The high end market is a lot different than those below $2 million."

In the Pine Point case, the savvy buyer who runs a company was seeking Nevada residency for tax purposes.

Even with the high end homes, Keck still considers Tahoe as more affordable compared to Southern California resort areas - and it has the lake.

"The Tahoe market will always be a desirable place to live and vacation," she said.

South Shore housing market:

Single-family home median listed price (as of Dec. 3): $549,950

Active listings: 369 (not including pending sales)

2005 active listings: 324

2005 median price sold: $475,000

2005 average days on market: 92

2006 median price sold: $474,000

2006 average days on market: 126



Source: South Tahoe Association of Realtors