JUST LISTED: 160 CHERRY STREET

Custom home mountain lodge

JUST LISTED

160 Cherry Street, Homewood, California

6 BR | 5.5 BA | 5670 SF

Listing  Price $10,200,000

Situated on 2.38 acres and backing to Forest Service land, this property encapsulates privacy and seclusion without compromising your proximity to the lake. As a member of Tahoe Swiss Village’s homeowner’s association, you can enjoy the use of two buoys, two piers, and a private beach located just across the street. This custom home was initially envisioned as a mountain lodge with an industrial feel, and the dedicated group of minds behind it brought this vision to life. It was designed, engineered, and built by local teams who have a deep affinity for this area and worked together to seamlessly integrate the intimate characteristics of the home with the nature that surrounds it. The methodical detail put into every decision is evident from the moment you walk in the 10-foot front door.

Completed in 2020, this home features endless unique components, such as a hanging staircase made out of forged steel, the use of reclaimed wood from the original Tahoe Tavern pier that was used for multiple pieces throughout the home, a custom A-symmetrical front gate, a 20-foot stone, floor-to-ceiling, double-sided fireplace centered in the great room, and much more. The main home has five bedrooms, four and a half bathrooms, and a 1,400-square-foot deck with a covered patio and wood-burning fireplace. The guest house is a fully detached one-bedroom, one-bathroom unit with four additional built-in bunk beds to accommodate both friends and family.

Nestled between the guest and main homes is an outdoor patio with a gas fireplace and a 30′ outdoor water feature. There are two separate garages that can comfortably house five cars and a boat. The radiant heat, air conditioning units, air purifying system, elevator, and heated stairs and driveway are the finishing touches to ensure life at Cherry Street is as effortless as it gets.

For showing appointment, contact Amie Quirarte.

THE MORNING: THE FED’S UNPLEASANT CHOICE

Good morning. The Fed must choose between two unpleasant options today. It’s a reminder of the high cost of weak bank oversight.

The Federal Reserve building. Haiyun Jiang/The New York Times
BY DAVID LEONHARDT
The New York Times
March 22, 2023

Inflation — or turmoil?

The Federal Reserve faces a difficult decision at its meeting that ends this afternoon: Should Fed officials raise interest rates in response to worrisome recent inflation data — and accept the risk of causing further problems for banks? Or should officials pause their rate increases — and accept the risk that inflation will remain high?

This dilemma is another reminder of the broad economic damage that banking crises cause. In today’s newsletter, I’ll first explain the Fed’s tough call and then look at one of the lessons emerging from the current banking turmoil. Above all, that turmoil is a reminder of the high costs of ineffective bank regulation, which has been a recurring problem in the U.S.

The Fed’s dilemma

The trouble for the Fed is that there are excellent reasons for it to continue raising interest rates and excellent reasons for it to take a break. On the one hand, the economic data in recent weeks has suggested that inflation is not falling as rapidly as analysts expected. Average consumer prices are about 6 percent higher than a year ago, and forecasters expect the figure to remain above 3 percent for most of this year. That’s higher than Fed officials and many families find comfortable. For much of the 21st century, inflation has been closer to 2 percent.

An inflation rate that remains near 4 percent for an extended period is problematic for several reasons. It cuts into buying power and gives people reason to expect that inflation may stay high for years. They will then ask their employers for higher wages, potentially causing a spiral in which companies increase their prices to pay for the raises and inflation drifts even higher. Today’s tight job market, with unemployment near its lowest level since the 1960s, adds to these risks. The economy still seems to be running hotter than is sustainable.

This situation explains why Fed officials had originally planned to continue raising their benchmark interest rate at today’s meeting — thereby slowing the economy by increasing the cost of homes, cars and other items that people buy with debt. Some Fed officials favored a quarter-point increase, which would be identical to the increase at the Fed’s meeting last month. Others preferred a half-point increase, in response to the worrisome recent inflation data.

The banking troubles of the past two weeks scrambled these plans. Why? In addition to slowing the economy, higher interest rates depress the value of many financial assets (as these charts explain). Some bank executives did a poor job planning for these asset declines, and their balance sheets suffered. When customers became worried that the banks would no longer have enough money to return their deposits, a classic bank run ensued. It led to the collapse of Silicon Valley Bank and Signature Bank, and others remain in jeopardy.

If Fed officials continue raising their benchmark rate, they risk damaging the balance sheets of more banks and causing new bank runs. That’s why a half-point increase now seems less likely. Some economists (including The Times’s Paul Krugman) have urged the Fed to avoid any additional increases for now. Many analysts expect the Fed will compromise and raise the rate by a quarter point; Jason Furman, a former Obama administration official, leans toward that approach.

The decision is unavoidably fraught. The Fed must choose between potentially exacerbating problems in the financial markets and seeming to go soft on inflation.

Why bailouts happen

All of which underscores the high cost of banking crises. In most industries, a company’s collapse doesn’t cause cascading economic problems. In the financial markets, the collapse of one firm can lead to a panic that feeds on itself. Investors and clients start withdrawing their money. A recession, or even a depression, can follow.

These consequences are the reason that government officials bail out banks more frequently than other businesses. Bailouts, of course, have huge downsides: They typically use taxpayer money (or other banks’ money) to subsidize affluent bank executives who failed at their jobs. “Nobody is as privileged in the entire economy,” Anat Admati, a finance professor at Stanford University’s business school, told me.

During a crisis, bailouts can be unavoidable because of the economic risks from bank collapses. The key question, then, is how to regulate banks rigorously enough to minimize the number of necessary bailouts.

Over the past few decades, the U.S. has failed to do so. After the financial crisis of 2007-9, policymakers tightened the rules through the Dodd-Frank Act. But Congress and the Trump administration loosened oversight for midsize banks in 2018 — and Silicon Valley Bank and Signature Bank were two of the firms that stood to benefit.

As complicated as finance can be, the basic principles behind bank regulation are straightforward. Banks require special scrutiny from the government because they may receive special benefits from taxpayers during a crisis. This scrutiny includes limits on the risks that banks can take and requirements that they keep enough money in reserve to survive most foreseeable crises. “You make sure they have enough to pay,” as Admati put it.

Bank executives and investors often bristle at such rules because they reduce returns. Money held in reserve, after all, cannot be invested elsewhere and earn big profits. It also can’t go poof when hard times arrive.

Breaking News: CPI Report at 6.5%

The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers. The U.S. Bureau of Labor Statistics (BLS) calculates the CPIas a weighted average of prices for a basket of goods and services representative of aggregate U.S. consumer spending.

BY EPHRAIM SCHWARTZ
O’Dette Mortgage Group of Synergy 1 Lending
January 12, 2023

January’s CPI (consumer price index) inflation data was released this morning and came in right at expectations of 6.5%.   This is good news as it’s notably lower than December’s reading of 7.1%, and CPI inflation has now moved lower for 6 consecutive months, with the last 3 CPI reports being the real catalyst in mortgage rates lower.   While this 6.5% CPI figure remains notably higher than the Fed’s target of 2% inflation, today’s report was still good news in the context of how inflation/mortgage rate are recovering from the distortion created by the Fed’s red line full throttle bond purchase program during Covid, and all supply chain related Covid issues which are mostly in the rear view mirror.  Here’s some context to share with clients and what it all means for mortgage rates.

We’re currently in this interesting window of time where it’s valuable for real estate investors to understand that increases to the Fed Funds rate does NOT mean mortgage rates increase.   Sometimes reiterating the mechanics of what determines mortgage rates (bond prices, which have move significant been determine by 2 things in the past few years:  the Fed’s bond purchase program and inflation) can instigate the question of; “why does it matter if the Fed hiking the Fed Funds rate isn’t what drives mortgage rates higher, it seem they’re usually moving in the same direction?”, in other words – does it really matter if it’s correlation or causation?

Answer:  yes – very much so, and the current market is precisely why it’s so important to clearly communicate the differences & mechanics for clients.  As of November, we are now in a phase where the Fed will continue to hike the Fed Funds rate, while mortgage rates are moving lower.    This is key for those looking to capitalize on a real estate opportunity before mass market sentiment pendulums back.

Here’s what’s going on with inflation mortgage rates:   CPI, a primary measure of inflation, had peaked at 9.1% this past summer.   The Fed hikes the Fed Funds rates (short term consumer debts) to fight this inflation.   The November & December CPI reports both came in notably lower/better than the market expectation, this benefited bond prices, and therefore mortgage rates.    Since mid-November we’ve been talking about how; unless we got surprisingly bad news on inflation in the months ahead, it looks like mortgage rates peaked that first week in November.   Today’s CPI data coming in right at expectations further reinforces this trend.   To put into perspective, the 10 yr Treasury, which is what Jumbo mortgage rates follow, hit ~4.35% that last week of October, then had it’s best day of the year the same day the November CPI report came in lower than expectations, then again moved another leg lower after the December CPI data, and is settled in today at ~3.4%.    This is significant good news as we all know higher mortgage rates are part of the downward pressure on real estate prices, and vice versa.

We’re still seeing Jumbo rates today a bit lower than conforming, and the larger loan amounts actually pricing the best.   For example today, a ~$2.0M purchase with 20% down, can get a 30 yr fix in the 5%’s with no points, and as low as ~5.25% with a little over a point.   This is a historically healthy place for mortgage rates to be.

In sum, the headlines will soon again talk about rates moving higher when the Fed increases the Fed Funds rate again, which is coming, and meanwhile mortgage rates have already come down to a healthy level.

Your Guideline to Short-Term Rental in Lake Tahoe

If you are looking to purchase a home to use as a short-term vacation rental (rental periods of less than 31 nights), you will be required to apply for a permit with the county in which the home is located. While Lake Tahoe falls into two different states, we have five different counties around the lake, that each have their own set of requirements and their own application processes. The guidelines have gone through numerous renditions and are always subject to change, so your best resources will be found on the county websites, organized below.

Let’s start with the counties. In the below map of Lake Tahoe, you will see four counties, with Truckee falling into both Placer County and Nevada County (detailed in the second map), and in some neighborhoods, it may even come down to what side of the road you live on! Northstar lies in Placer County, while Tahoe Donner is in Nevada County. The town of Truckee lies in Nevada County, which has additional restrictions, including that your home can not be short-term rented within one year of purchase.

Notably, many gated communities and some condo complexes and HOAs will not allow rentals for less than 31-day periods. If renting your home for short increments of time is a requirement for your purchase, this may dictate neighborhoods that you search in.

Some counties experience waitlists for permits. If renting your home is a necessary part of your purchase, you may want to call county offices to determine the waiting period.

Below, we provide links for more information on each county’s Short-Term Rental program and application process.

Placer County, CA

Short-Term Rental Program Information

Short-Term Rental Permit Application

Nevada County, CA (Town Of Truckee)

Short-Term Rental Program Information

Short-Term Rental Permit Application

El Dorado County, CA

Vacation Home Rental Program Information

Vacation Home Rental Permit Application

Washoe County, NV (Incline Village & Crystal Bay)

Short-Term Rental Program Information

Short-Term Rental Permit Application

Douglas County, NV

Vacation Home Rental Program Information

Vacation Home Rental Permit Application

 

Navigating the Path to Homeownership

UPCOMING EVENT

Want to buy a home in Tahoe/Truckee but not sure where to begin? Join Amie Quirarte with Tahoe Luxury Properties and Chelsy Delia with The Rice Team at Guild Mortgage for an informative presentation on Navigating the Path to Homeownership from two home-buying experts who will guide you on a path toward buying your first home.

New Developments Breaking Ground in Lake Tahoe

With a wave of new development projects underway, revitalization of Lake Tahoe continues. Read our summary of upcoming projects below, and see the significant investments being made to North Lake Tahoe. Links are provided to take you to developers’ websites with more detail.

 

  The Waldorf Astoria by EKN

© 2022 Hilton

Hotel giant Hilton announced plans for the luxury Waldorf Astoria Lake Tahoe to be located on the 15-acre site of the former Tahoe Biltmore Hotel and Casino on the Nevada side of North Lake Tahoe. Slated to open in 2027, the newly built resort will feature 76 guest rooms and 61 Waldorf Astoria-branded residences. Hilton signed a brand and management agreement for the Northern Nevada project with EKN Development Group.

Read More

 

  Boatworks at Tahoe

At the site of the Boatworks Mall in Tahoe City, there are plans to develop the approximately four acres to a development that includes a lakefront hotel, 31 residential condominium units, and 8,000 square feet of commercial retail space along North Lake Boulevard. Boatworks at Tahoe, LLC acquired the Mall in 2019 and the adjacent 35-room Tahoe City Inn in late 2018.

Read More

 

Homewood Mountain & Lake Club

Homewood Mountain Resort is switching to a members only model with 175-180 residences to be built around the base of the ski resort area, plus a hotel with 15-20 rooms. Memberships offer lifelong access to skiing. Purchasing a residence will include a membership and an additional number (TBD) of non-residential memberships will be sold. The Discovery Land Company operates a vast portfolio of private residential clubs and resorts, including the famed Yellowstone Club.

Read More

 

Tahoe City Lodge

Located in downtown Tahoe City, a new luxury development is opening its doors to a limited number of astute buyers. Tahoe City Lodge, the first new resort development project in over 50 years, is scheduled to break ground in Spring 2023, with estimated completion in Winter 2024/2025. This will be a four-star hotel with 65 resort condominiums and a restaurant and rooftop bar.

Read More

 

Hyatt Lake Tahoe

Larry Ellison’s investment firm acquired the lakeside resort for $345M on September 3. At more than $817,535 a room, the deal for the property in Incline Village, Nevada, set a per-room record for hotel pricing in the Tahoe market, according to Atlas Hospitality Group President Alan Reay. The deal includes the 16-acre main Hyatt property at 111 Country Club Drive, as well as an adjacent 8.5-acre parcel on the lake’s shore that contains 24 cottages and the Lone Eagle Grille restaurant. The 12-story resort features 422 guest rooms, including 35 suites, restaurants, spa, casino, and more. According to the website, Hyatt Regency will be undergoing renovations to enhance the guest experience from late April 2023 through April 2025. During this time access to Lake Tahoe, the beach and the pier will be unavailable.

Read More

 

39°N Lake Tahoe

39°N is a vibrant new hotel, housing, restaurant/retail and community space right in the heart of Kings Beach. 39°N is anchored by a 153-room hotel and will offer 36 for-sale townhomes and 74 units of for-rent workforce housing. The project is intended to bring a new energy to the Kings Beach core.

Read More

 

Nine 47 Tahoe

Nine 47 Tahoe is a luxury development of 40 mountain modern condominiums located in Incline Village, starting at $2.5M. The development boasts reserved garage parking, stunning courtyards, a rooftop deck and a dog washing station. Residences include two, three, and four bedrooms ranging 1,525 to 4,171 square feet.

Read More

2022/2023 Resort Winter Skiing

The Lake Tahoe 2022/2023 ski season is here! While ski resort opening dates are always subject to weather and conditions, it sure does give us something to look forward to. As the nights get chillier, we start to envision our ski season ahead. So get your skis waxed and your gear ready because powder days are ahead!

Ski Resorts

Boreal Mountain Open Now

Experience the magic of Boreal’s sunset session every night! The Night Pass gives unlimited access to the mountain from 3:00pm – 8:00pm.

Mt. Rose Ski Tahoe Open Now

New this year: Estimated to be the largest capital improvement project in the resort’s history, the new Lakeview Express chairlift will be a key piece of Mt. Rose’s effort to enhance the overall experience in the “Lakeview Zone.” The plan includes trail additions, existing run improvements, and new skier traffic patterns, offering even greater access to beginner, intermediate and advanced terrain and help give skiers and snowboarders of all ability levels a more enhanced mountain experience.

Stay nearby

Northstar California & Heavenly Open Now

New this year: Celebrating their 50th anniversary, Northstar will open with the newly upgraded Comstock Express lift, now a high-speed 6-person chairlift. New passholder perk: With early lift access every Monday, Northstar passholders can load chairlifts at 8:30am for First Tracks on Monday, starting in December.

Stay nearby Northstar   Stay nearby Heavenly

Palisades Tahoe Open Now

New this year: A base-to-base gondola connects Palisades and Alpine. Guests will enjoy easy access to 6,000 acres of terrain. The 2.4 mile gondola ride will transport guests between The Village at Palisades Tahoe and the Alpine Lodge in 16 minutes, with the option for expert skiers and riders to unload at the KT-22 mid-station. The gondola is expected to be running by mid-December, weather permitting. Red Dog chairlift is replaced with a high-speed 6-seather and also is expected to open in December, weather permitting. Expanded mountaineer operations, plus snowmaking and lodge enhancements.

Stay nearby

Sugar Bowl Open Now

New this year: Sugar Bowl joins the Mountain Collective. The Sugar Rush snowtubing park will have a 400′ magic carpet accessing 10 lanes of tubing, plus a sweets station for kids and a bar for adults, open on weekends and holidays and some evenings.

Stay nearby

Diamond Peak Opens Thursday, December 8

New this year: New surface lift for the Child Ski & Ride Center, relocated terrain park, new RFID access gates, and guided after-hours snowshoe hikes.

Stay nearby

Homewood Mountain Resort Opens Friday, December 9

See first-hand why Homewood is “Where the Mountains Meet the Lake.” Two hundred eight steps from lift-to-lake gives Homewood an unbeatable lakeside skiing experience.

Stay nearby

Tahoe Donner Downhill Opens Friday, December 9

For nearly 50 years, Tahoe Donner Downhill Ski Resort has provided families a unique and affordable ski experience. Committed to being “the best place to begin” and offer ski instruction for children as young as 3 years old. Enjoy wide-open bowls, uncrowded slopes, gentle beginner terrain, and excellent grooming.

Stay nearby

Happy Skiing!

JUST SOLD: 558 Valley Drive

I had the honor of representing the buyer of this three bedroom, two bathroom Incline Village gem.

With filtered lake views and acres of forest landscape to bask in, this is the ultimate mountain home paradise! Plus, Incline Village offers incredible community amenities to meet every outdoor lifestyle. Congratulations to both parties!

  • 3 BR, 2 BA
  • 2,280 sq/ft
  • Sale Price $1,650,000

JUST SOLD: 1587 Squaw Valley Road #19

I had the honor of representing the seller of this 2 bedroom, 2 bathroom Olympic Valley condo with panoramic and unobstructed views of the Valley and the ski hill. It’s no wonder it went for $127k over asking within a day on the market. Congratulations to both parties!

  • 2 BR, 2 BA
  • 988 sq/ft
  • Sale Price $852,000

Just Sold: 13010 Heidi Way

I had the honor of representing the buyer of this 3 bedroom, 2 bathroom Truckee mountain home in an ideal setting the balances a shaded forest with the warmth of the season and hiking out your back door on the Tahoe Donner trail system. Congratulations to both parties!

  • 3 BR, 2 BA
  • 1,534 sq/ft
  • Sale Price $950,000