Foreclosures, Delinquencies Hit Records
Foreclosures and mortgage delinquencies both continued to rise during the first quarter of 2008, hitting their highest levels since record-keeping began in 1979, according to the Mortgage Bankers Association.
The seasonally adjusted delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 6.35 percent of all loans outstanding at the end of the first quarter of 2008 on a seasonally adjusted (SA) basis, up 53 basis points from the fourth quarter of 2007, and up 151 basis points from one year ago, according to MBA’s National Delinquency Survey. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure.
The percentage of loans in the foreclosure process was 2.47 percent at the end of the first quarter, an increase of 43 basis points from the fourth quarter of 2007 and 119 basis points from one year ago.
While these numbers seem disturbingly high, experts note that certain states and certain types of loans are skewing the national figures upward. Specifically, most of the problems step from prime and subprime adjustable-rate loans 60 and 90 days past due in California and Florida.
The 30-day delinquency rate is still below levels seen in 2002.
“The problems in California and Florida are extraordinary and they are the main drivers of the national trend,” said Jay Brinkmann, MBA’s Vice President for Research and Economics.
The quarterly rate of foreclosure starts on subprime ARM loans in California was 9.24 percent. This rate, combined with Florida’s rate of 8.25 percent, drove up the national average foreclosure start rate to the point where 43 states were below the national average of 6.32 percent.
California saw a total of approximately 109,000 foreclosure starts and Florida 77,000. The next highest states were Texas, Michigan and Ohio with between 24,000 and 20,000 each.
About 20 states had drops in their number of foreclosures started, including Michigan, Ohio and Indiana where problems have been the most severe for the last several years, Brinkmann said.
Source: The Mortgage Bankers Association (06/06/2008)
Monday, July 28, 2008
Thursday, July 24, 2008
IRS Defines 1031 Exchange Rules for Vacation Homes
Good News for Vacation and Second Home Owners
Revenue Procedure 2008-16 - Safe Harbor for Exchanges of Vacation Homes and Conversions to or from Personal Residences
This revenue procedure, which will be effective for exchanges occurring on or after March 10, 2008, establishes a safe harbor regarding when a vacation home can be considered investment property and traded in a §1031 exchange. The ruling states that a vacation home qualifies for a §1031 exchange if the investor owns the home for at least 24 months, rents it for at least 14 days for each 12-month period, and uses it no more than the greater of 14 days per year or 10 percent of the number of days during the year that the home is rented. These requirements apply to both the relinquished and replacement properties.
For purposes of this revenue procedure, a vacation home, also called a "dwelling unit" in the Revenue Procedure, is real property improved with a house, apartment, condominium, or similar improvement that provides basic living accommodations including sleeping space, bathroom and cooking facilities.
For a link to the ruling, please click here.
Please contact us at First American Exchange Company if you need further clarification.
First American Exchange
866-993-1031
Download 1031 Exchange Brochures
Request Additional Information
Find an Office Near You
View Industry Related Articles
Certified Exchange Specialist® on Staff
Member of the Federation of Exchange Accommodators
As always feel free to contact our office directly if you have any questions; or should you be interested in property in the Lake Tahoe area
Alvin Steinberg, CRS
Coldwell Banker Incline Village Realty
917 Tahoe Blvd., Suite 103
Incline Village, NV 89451
800.666.4718 Toll Free
775.832.1888 Direct
775.832.1889 Fax
www.LivingLakeTahoe.com
email: Alvins@cbivr.com
Revenue Procedure 2008-16 - Safe Harbor for Exchanges of Vacation Homes and Conversions to or from Personal Residences
This revenue procedure, which will be effective for exchanges occurring on or after March 10, 2008, establishes a safe harbor regarding when a vacation home can be considered investment property and traded in a §1031 exchange. The ruling states that a vacation home qualifies for a §1031 exchange if the investor owns the home for at least 24 months, rents it for at least 14 days for each 12-month period, and uses it no more than the greater of 14 days per year or 10 percent of the number of days during the year that the home is rented. These requirements apply to both the relinquished and replacement properties.
For purposes of this revenue procedure, a vacation home, also called a "dwelling unit" in the Revenue Procedure, is real property improved with a house, apartment, condominium, or similar improvement that provides basic living accommodations including sleeping space, bathroom and cooking facilities.
For a link to the ruling, please click here.
Please contact us at First American Exchange Company if you need further clarification.
First American Exchange
866-993-1031
Download 1031 Exchange Brochures
Request Additional Information
Find an Office Near You
View Industry Related Articles
Certified Exchange Specialist® on Staff
Member of the Federation of Exchange Accommodators
As always feel free to contact our office directly if you have any questions; or should you be interested in property in the Lake Tahoe area
Alvin Steinberg, CRS
Coldwell Banker Incline Village Realty
917 Tahoe Blvd., Suite 103
Incline Village, NV 89451
800.666.4718 Toll Free
775.832.1888 Direct
775.832.1889 Fax
www.LivingLakeTahoe.com
email: Alvins@cbivr.com
Monday, July 21, 2008
Many Underestimate Credit Score Importance
Source: Boston Globe (07/11/08)
While the nation's credit-scoring program is a critical factor in determining what individual borrowers pay in interest on credit cards and mortgages — and even how much they pay for insurance — new research suggests that most Americans still do not understand how the system works.
Respondents to a recent Consumer Federation of America/Washington Mutual Inc. survey largely did not know that credit scores are derived from payment histories, with many participants mistakenly believing that the number is influenced by such factors as income, age, education, and marital standing.
According to Anthony Vuoto of Washington Mutual Card Services, if all consumers took steps to boost their credit scores by at least 30 points, they together would realize as much as $28 billion annually in savings.
5 Factors That Decide Your Credit Score
Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:
1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.
Improving your FICO® credit score
It’s important to note that raising your FICO credit score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. See how much money you can save by just following these tips and raising your credit score.
Payment History Tips
Pay your bills on time.Delinquent payments and collections can have a major negative impact on your FICO score.
If you have missed payments, get current and stay current.The longer you pay your bills on time, the better your credit score.
Be aware that paying off a collection account will not remove it from your credit report.It will stay on your report for seven years.
If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.This won't improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
Amounts Owed Tips
Keep balances low on credit cards and other “revolving credit”.High outstanding debt can affect a credit score.
Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
Don't close unused credit cards as a short-term strategy to raise your score.
Don't open a number of new credit cards that you don't need, just to increase your available credit.This approach could backfire and actually lower your credit score.
Length of Credit History Tips
If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.New accounts will lower your average account age, which will have a larger effect on your score if you don't have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.
New Credit Tips
Do your rate shopping for a given loan within a focused period of time.FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
Re-establish your credit history if you have had problems.Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.
Note that it's OK to request and check your own credit report.This won't affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
Types of Credit Use Tips
Apply for and open new credit accounts only as needed.Don't open accounts just to have a better credit mix - it probably won't raise your credit score.
Have credit cards - but manage them responsibly.In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
Note that closing an account doesn't make it go away.A closed account will still show up on your credit report, and may be considered by the score.
Source: Boston Globe (07/11/08)
While the nation's credit-scoring program is a critical factor in determining what individual borrowers pay in interest on credit cards and mortgages — and even how much they pay for insurance — new research suggests that most Americans still do not understand how the system works.
Respondents to a recent Consumer Federation of America/Washington Mutual Inc. survey largely did not know that credit scores are derived from payment histories, with many participants mistakenly believing that the number is influenced by such factors as income, age, education, and marital standing.
According to Anthony Vuoto of Washington Mutual Card Services, if all consumers took steps to boost their credit scores by at least 30 points, they together would realize as much as $28 billion annually in savings.
5 Factors That Decide Your Credit Score
Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:
1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.
Improving your FICO® credit score
It’s important to note that raising your FICO credit score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. See how much money you can save by just following these tips and raising your credit score.
Payment History Tips
Pay your bills on time.Delinquent payments and collections can have a major negative impact on your FICO score.
If you have missed payments, get current and stay current.The longer you pay your bills on time, the better your credit score.
Be aware that paying off a collection account will not remove it from your credit report.It will stay on your report for seven years.
If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.This won't improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
Amounts Owed Tips
Keep balances low on credit cards and other “revolving credit”.High outstanding debt can affect a credit score.
Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
Don't close unused credit cards as a short-term strategy to raise your score.
Don't open a number of new credit cards that you don't need, just to increase your available credit.This approach could backfire and actually lower your credit score.
Length of Credit History Tips
If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.New accounts will lower your average account age, which will have a larger effect on your score if you don't have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.
New Credit Tips
Do your rate shopping for a given loan within a focused period of time.FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
Re-establish your credit history if you have had problems.Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.
Note that it's OK to request and check your own credit report.This won't affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
Types of Credit Use Tips
Apply for and open new credit accounts only as needed.Don't open accounts just to have a better credit mix - it probably won't raise your credit score.
Have credit cards - but manage them responsibly.In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
Note that closing an account doesn't make it go away.A closed account will still show up on your credit report, and may be considered by the score.
Thursday, July 17, 2008
Why Selling Now Makes Sense
Home owners who are reluctant to sell because prices have fallen, should do the math, and realize that the market downturn could work in their favor, say practitioners in hard-hit, but still pricey Boston.
Their reasoning may work in many other parts of the country as well.
"People are finding houses at prices they thought they'd never see again," says David W. O'Neil of Century 21 Spindler & O'Neil Associates in suburban Boston.
O’Neil points out to potential sellers that if the house a buyer covets used to be $500,000 but its price has fallen 20 percent to $400,000, it is a deal, even if the buyer’s own home also has lost 20 percent of its value.
In general, the toughest sell is people who bought about four years ago at the height of the market, says Zur Attias of The Attias Group at Barrett & Co. in Concord, Mass. But even for these home owners, selling now may make sense as long as they can at least break even.
He argues that almost everyone forgoes something, and probably several things, that he or she wanted when buying a house. For instance, the home may be in the right school district, but on a busy street. Or it may in a great neighborhood, but it's a Cape, not a Colonial. These are things Attias calls "unchangeables."
He says it’s a good time to sell if a seller can get rid of the most negative unchangeables in his current home, and replace them with better unchangeables in a new home. Once the market really turns around, the growth will be bigger in the better house, he predicts.
Source: The Boston Globe, Vanessa Parks and Jonathan Wiggs (04/13/2008)
Home owners who are reluctant to sell because prices have fallen, should do the math, and realize that the market downturn could work in their favor, say practitioners in hard-hit, but still pricey Boston.
Their reasoning may work in many other parts of the country as well.
"People are finding houses at prices they thought they'd never see again," says David W. O'Neil of Century 21 Spindler & O'Neil Associates in suburban Boston.
O’Neil points out to potential sellers that if the house a buyer covets used to be $500,000 but its price has fallen 20 percent to $400,000, it is a deal, even if the buyer’s own home also has lost 20 percent of its value.
In general, the toughest sell is people who bought about four years ago at the height of the market, says Zur Attias of The Attias Group at Barrett & Co. in Concord, Mass. But even for these home owners, selling now may make sense as long as they can at least break even.
He argues that almost everyone forgoes something, and probably several things, that he or she wanted when buying a house. For instance, the home may be in the right school district, but on a busy street. Or it may in a great neighborhood, but it's a Cape, not a Colonial. These are things Attias calls "unchangeables."
He says it’s a good time to sell if a seller can get rid of the most negative unchangeables in his current home, and replace them with better unchangeables in a new home. Once the market really turns around, the growth will be bigger in the better house, he predicts.
Source: The Boston Globe, Vanessa Parks and Jonathan Wiggs (04/13/2008)
Monday, July 14, 2008
5 Simple Ways to Increase a Home's Value.
Good home maintenance is key to creating and preserving a home’s value. Not to mention, it also impresses potential buyers.
Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.
1. Safety. Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.
2. Preventive maintenance. Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.
3. Conserve energy. Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.
4. Go green. Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.
5. Improve comfort. Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.
Source: The Associated Press, James and Morris Carey (12/29/07)
Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.
1. Safety. Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.
2. Preventive maintenance. Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.
3. Conserve energy. Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.
4. Go green. Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.
5. Improve comfort. Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.
Source: The Associated Press, James and Morris Carey (12/29/07)
Friday, July 11, 2008
5 New Rules for Home Buyers
Surviving and thriving in the real estate market these days means following a whole new set of rules.
Here are five imperatives for those who want to master the home-buying game. Explaining these items to your customers to help you win friends and sales.
1. Gaming the market doesn’t work. There's a chance that the home you buy today will be worth less next year. So instead of trying to time the market, drive a hard bargain for a home you really love.
2. Real winners get the lowest mortgage rate. Financing is getting more expensive. Celia Chen of Moody’s Economy.com predicts rates will hit 7 percent in mid 2009.
3. Jumbos are a big bargain. A new law temporarily allows Freddie Mac and Fannie Mae to buy mortgages as big as $729,750, which is keeping the jumbo rates down. The deal disappears at year-end.
4. Good schools count. Neighborhoods with highly rated schools are holding their value better than most, according to a recent study by real estate site Trulia.com.
5. Honesty is the best policy. Be upfront about your commission and consider letting the buyer keep any incentives offered by the sellers.
Source: Money Magazine, Amanda Gengler (05/27/08)
If our office can be of any assistance in the busy Real Estate market please feel free to contact us directly!
Alvin Steinberg, CRS
Coldwell Banker Incline Village Realty
917 Tahoe Blvd., Suite 103
Incline Village, NV 89451
800.666.4718 Toll Free
775.832.1888 Direct
775.832.1889 Fax
www.LivingLakeTahoe.com
Here are five imperatives for those who want to master the home-buying game. Explaining these items to your customers to help you win friends and sales.
1. Gaming the market doesn’t work. There's a chance that the home you buy today will be worth less next year. So instead of trying to time the market, drive a hard bargain for a home you really love.
2. Real winners get the lowest mortgage rate. Financing is getting more expensive. Celia Chen of Moody’s Economy.com predicts rates will hit 7 percent in mid 2009.
3. Jumbos are a big bargain. A new law temporarily allows Freddie Mac and Fannie Mae to buy mortgages as big as $729,750, which is keeping the jumbo rates down. The deal disappears at year-end.
4. Good schools count. Neighborhoods with highly rated schools are holding their value better than most, according to a recent study by real estate site Trulia.com.
5. Honesty is the best policy. Be upfront about your commission and consider letting the buyer keep any incentives offered by the sellers.
Source: Money Magazine, Amanda Gengler (05/27/08)
If our office can be of any assistance in the busy Real Estate market please feel free to contact us directly!
Alvin Steinberg, CRS
Coldwell Banker Incline Village Realty
917 Tahoe Blvd., Suite 103
Incline Village, NV 89451
800.666.4718 Toll Free
775.832.1888 Direct
775.832.1889 Fax
www.LivingLakeTahoe.com
Monday, July 7, 2008
High Gas Prices Affect Boaters Too!
If the Lake Tahoe Basin's summer economy were an algebra equation, it would look something like this: Boating + tourists = success.
Though the area offers vacationers a laundry list of warm-weather activities, boating is a particularly keen bellwether of the area's economic strength. And this year, it's being tested possibly as never before.
Soaring gas prices are the primary culprit.
But even as fuel hovers close to $5 per gallon for cars on the shore and costs more than $6 per gallon for boats on the lake, Tahoe businesses hoped the July 4 holiday - historically one of the largest tourist draws of the year - would mark the beginning of a rebound from a dismal 2007.
But even before the patriotic weekend's promise of barbecue, beer and fireworks, some area boating merchants already had taken steps to lure tourists by alleviating the effect of soaring gas prices.
Stuart Maas, sales manager for boat-rental companies Ski Run Boat Company and Tahoe Keys Boat Rental, decided this spring not to raise rental fees.
Stuart Maas, sales manager for boat-rental companies Ski Run Boat Company and Tahoe Keys Boat Rental, decided this spring not to raise rental fees.
"Because adventure sports are a luxury good, we wanted to make it affordable as possible for everyone and let the people have the fun they want to have," Maas said recently.
The companies - affiliated with Powder House and Rainbow Mountain, a ski-rental outfitting company with seven locations on the South Shore - charge $95 per hour to rent boats and $100 per hour to rent personal watercraft.
Maas said after a slow start in June, rentals of both types of watercraft have been "solid" leading up to July 4, though boaters are being "a little more cautious" with their money and use of fuel, he added.
"We're still seeing people taking boats for half-days and full days, but we're not sure if they're going around the lake or not," Maas said.
One thing's for sure, though, said Ski Run Boat Company owner Ron Williams: Tourists itching to escape the hot valleys surrounding the basin already are coming to Tahoe.
"It's a pressure cooker down there," Williams said, noting the many valley customers he has accommodated. "When it gets to be in the hundreds in Sacramento, they float right up the highway."
"It's a pressure cooker down there," Williams said, noting the many valley customers he has accommodated. "When it gets to be in the hundreds in Sacramento, they float right up the highway."
That particular highway, though, hasn't yet led to Billy Fier's place on Donner Lake in Truckee. Fier, who manages Donner Lake Water Sports and Donner Lake Marina, said the company is getting hit with a "double whammy."
To compensate for high gas prices, Fier's business has raised fees to rent ski boats, but spiking gas and diesel prices are deterring tourists, so Fier is unable to recoup his losses.
"You're sitting there holding your breath, hoping people will show up this summer," he said.
Other marina owners and managers around the lake also are feeling the pinch of higher gas prices, though most are optimistic the basin will weather the storm. Bob Hassett is among them. He owns Timber Cove Marina in South Lake Tahoe.
"At the present time, I'm not concerned about the high gas prices," he said recently.
"My gut feeling is that people are going to have fun, and compared to last summer, gas is only one dollar more, so most people think spending an extra $20 is worth it."
"My gut feeling is that people are going to have fun, and compared to last summer, gas is only one dollar more, so most people think spending an extra $20 is worth it."
At Sunnyside Marina on Tahoe's West Shore, manager Elianna Furtney echoed Hassett's sentiments. She said the marina's business is down a bit, but she blames that on a rainy Memorial Day, not on high gas prices.
"I think when you look at it over the season, it's only a few hundred more dollars for people, and they aren't that concerned," she said.
Chris Burke, Zephyr Cove Marina director of operations, said he has noticed a similar volume of boaters as in years past, but this summer, they're looking for more deals.
"More people are seeking coupons and taking the early-bird special," Burke said.
Over at Meeks Bay Marina on Tahoe's West Shore, dockhand Janet Blanke said it's too early to tell how the season will shape up. She'll know more, she added, after she gauges results of the July 4 holiday weekend.
So far, however, she has noticed fewer boat renters but similar numbers of boat owners at the Meeks Bay location. Boat-rental prices have increased from $10 to $70 to offset gas prices, she said.
So far, however, she has noticed fewer boat renters but similar numbers of boat owners at the Meeks Bay location. Boat-rental prices have increased from $10 to $70 to offset gas prices, she said.
Though boat-rental companies and marinas remain generally optimistic about the summer tourist season, boaters themselves are curtailing their water activities.
Charles Rottman, a longtime personal-watercraft rider from the East Bay, said gas prices definitely have affected his routine.
"I don't take as many trips up here (to Tahoe), and I don't go fill up the tank as often," he said.
Rottman also has reduced his Jet Ski speed to conserve gas, he added.
"I'd get up to 65 to 70 miles per hour, and now I'm slowing to 50 to 55 miles per hour to make the gas last," he explained.
Cheryl Serota, a boater from Pollock Pines who visited South Lake Tahoe over the July 4 weekend, said gas prices have greatly affected her.
Cheryl Serota, a boater from Pollock Pines who visited South Lake Tahoe over the July 4 weekend, said gas prices have greatly affected her.
"It's expensive," she said Friday morning. "It costs us $200 to fill up (the boat). This year, we've been taking fewer trips up here, but we wanted to come up for the holiday."
But according to Jan Brisco, executive director of the Tahoe Lakefront Owners Association, tourists aren't the only people to worry about during the current economic storm. Residents, too, are rethinking their boating habits.
"Some people are not even taking their boats out of their harbor or slip," she said recently. "Some of the really big boats are staying close to home, and a lot of people I know have traded powerboats for sailboats."
And while that may portend a spike in business for some nonmotorized boat sales in the basin, other area boat dealers are hurting.
John Walker, an Internet boat dealer and Lake Tahoe boat owner, minced no words about the economic downturn's effect on his business.
"Like everything else, when you have toys that are paid for with a discretionary income, and the economy takes a downturn, you're not going to be spending like you used to," he said. "I expect to see a reduction of boats on the lake this summer."
"Like everything else, when you have toys that are paid for with a discretionary income, and the economy takes a downturn, you're not going to be spending like you used to," he said. "I expect to see a reduction of boats on the lake this summer."
Gary Felsh, sales manager for Cope & McPhetres Marine in Tahoe City, said boat sales are sinking, and so are the habits of recreational sailors.
"People are holding back right now and not using their boats as much," he said. "And boat sales are definitely off."
Sierra Boat Company President Herb Hall has seen his Kings Beach/Carnelian Beach businesses falter with the economy. Hall has 30 percent greater inventory than he did last year, he said. Several of his recent customers were desperate to sell their boats, and others wanted to scale down, he explained.
"It's the slowest I've ever seen it," he said of current sales. "I'm not selling new stuff, but I have popular boats in my inventory."
But as with every other business owner in Lake Tahoe, Hall is hoping the popularity of Lake Tahoe's famed recreational boating will keep the local economy afloat this summer.
But as with every other business owner in Lake Tahoe, Hall is hoping the popularity of Lake Tahoe's famed recreational boating will keep the local economy afloat this summer.
Questions or Comments? Contact Alvin's office directly at:
1-800-666-4718
or email at AlvinS@cbivr.com
We look forward to your input!
Wednesday, July 2, 2008
Red, white and a parade too!
Free breakfast, parade kick off today's eventsIt’s been a 363-day wait (remember, this year was a leap year), but the second annual Red, White and Tahoe Blue finally is here.
The event unique to Incline Village and Crystal Bay starts this morning when the local Boy Scouts raise the American flag at the North Lake Tahoe Fire Protection District Fire Station at 866 Oriole Way, and it doesn’t let up, save for some sleep, until about 10 p.m. or so Friday night at the Village Green, when the final fireworks stop exploding and the Reno Philharmonic conductor’s arms raise for a final symphonic hurrah.
So, while you’re reading this, maybe even over a plate full of pancakes and sausage at this morning’s free pancake breakfast, from 8 to 10 a.m. at the fire station, here’s a few last minute traffic-related items you need to know about this year’s event.
First, the parade is today, not on Friday the Fourth, so don’t be confused when the main drag through Incline today is occupied by floats occupied by war veterans and candy-flinging children.
The parade begins at 9:45 this morning, with the kids bike and scooter portion, followed by the rest, from 10 to 11:30 a.m. today. The route runs from the corner of Village and Tahoe boulevards west to Country Club Drive. From there it takes a right turn, heading south, before taking another right turn onto Incline Way, ending at the Village Green.
Sgt. Bill Devine, of the Washoe County Sheriff’s Office Incline Village Substation, said traffic shouldn’t experience too long a delay during today’s parade. As the parade will be eastbound on Highway 28, the westbound lane will remain open for traffic, such as for people wanting to leave the Raley’s parking lot to head west.
Traffic will be closely monitored, Devine said, and it will be stopped at intersections to ensure safe parade flow.
“Delays should be at a minimum,” Devine said. “Plus, if you’re going through, people might as well just pull over and enjoy it. It’s only going to take 5 or 10 minutes to run through anyway.”
For the short portion on Country Club, in which the parade route travels south, northbound traffic will be open.
Another thing to know is how traffic will flow Friday on Lakeshore Boulevard.
Throughout the day, parking along the road, on both sides, will be off-limits between the Country Club Drive and Village Boulevard intersections, Devine said. Parking already is not allowed on the north side of the road. On the Fourth, however, parking also will not be allowed on the south side of the road.
“There will be loading and unloading zones for the beaches, and there will be handicapped access,” Devine said.
Furthermore, beginning at 8 p.m. Friday, traffic won’t be allowed on the road between Country Club and Village, and the section will be coned off.
The cones will extend north onto Village Boulevard, all the way to Juanita Drive on the west side of the road, and up to the McCloud Apartment Complex on the east side of the road. Parking will not be allowed.
“If we don’t do that and open just one lane of traffic, we’re going to have a head-on,” Devine said. “It’s just safer this way.”
The no-traffic zone will help foot traffic after the fireworks and Reno Philharmonic show, which is expected to wrap up at about 10 p.m. on the Fourth.
“After the fireworks, everyone just spills out onto the street; this is really for pedestrian safety,” he said.
The event unique to Incline Village and Crystal Bay starts this morning when the local Boy Scouts raise the American flag at the North Lake Tahoe Fire Protection District Fire Station at 866 Oriole Way, and it doesn’t let up, save for some sleep, until about 10 p.m. or so Friday night at the Village Green, when the final fireworks stop exploding and the Reno Philharmonic conductor’s arms raise for a final symphonic hurrah.
So, while you’re reading this, maybe even over a plate full of pancakes and sausage at this morning’s free pancake breakfast, from 8 to 10 a.m. at the fire station, here’s a few last minute traffic-related items you need to know about this year’s event.
First, the parade is today, not on Friday the Fourth, so don’t be confused when the main drag through Incline today is occupied by floats occupied by war veterans and candy-flinging children.
The parade begins at 9:45 this morning, with the kids bike and scooter portion, followed by the rest, from 10 to 11:30 a.m. today. The route runs from the corner of Village and Tahoe boulevards west to Country Club Drive. From there it takes a right turn, heading south, before taking another right turn onto Incline Way, ending at the Village Green.
Sgt. Bill Devine, of the Washoe County Sheriff’s Office Incline Village Substation, said traffic shouldn’t experience too long a delay during today’s parade. As the parade will be eastbound on Highway 28, the westbound lane will remain open for traffic, such as for people wanting to leave the Raley’s parking lot to head west.
Traffic will be closely monitored, Devine said, and it will be stopped at intersections to ensure safe parade flow.
“Delays should be at a minimum,” Devine said. “Plus, if you’re going through, people might as well just pull over and enjoy it. It’s only going to take 5 or 10 minutes to run through anyway.”
For the short portion on Country Club, in which the parade route travels south, northbound traffic will be open.
Another thing to know is how traffic will flow Friday on Lakeshore Boulevard.
Throughout the day, parking along the road, on both sides, will be off-limits between the Country Club Drive and Village Boulevard intersections, Devine said. Parking already is not allowed on the north side of the road. On the Fourth, however, parking also will not be allowed on the south side of the road.
“There will be loading and unloading zones for the beaches, and there will be handicapped access,” Devine said.
Furthermore, beginning at 8 p.m. Friday, traffic won’t be allowed on the road between Country Club and Village, and the section will be coned off.
The cones will extend north onto Village Boulevard, all the way to Juanita Drive on the west side of the road, and up to the McCloud Apartment Complex on the east side of the road. Parking will not be allowed.
“If we don’t do that and open just one lane of traffic, we’re going to have a head-on,” Devine said. “It’s just safer this way.”
The no-traffic zone will help foot traffic after the fireworks and Reno Philharmonic show, which is expected to wrap up at about 10 p.m. on the Fourth.
“After the fireworks, everyone just spills out onto the street; this is really for pedestrian safety,” he said.
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