I wanted to share this with all of our readers.  It's an email I received yesterday from a friend at AmWest Home Loans.

From: Norm Hansen - amwesthomeloans.com
 
      Thursday, September 18, 2008 2:30 PM

Deb,

This is a good read…it comes from our advisors back east…

In a bid to ease the credit crunch and restore a sense of calm in the financial markets, the Federal Reserve authorized a $180 billion expansion of its swap lines with other world central banks.  The funds, which will be provided by the Federal Reserve, can be injected into money markets through overnight and term loans.  Stocks are liking this news so far and this is pressuring Bonds.

Something to think about - The Fed is attempting to be savvy and creative in its ways to help the financial system get back on track.  However, there is simply no one who can draw upon past experience to find answers here.  This situation is historic...and we are living through it.  It is almost comical to hear the utter stupidity that comes out of the mouths of some of the politicians who are paraded in front of the cameras...I can't help but think that we actually elected these people.   

There is a lot of panic out there.  People are very worried about their life savings.  Is money in the bank safe?  How about if it is in a life insurance policy?  How about in bonds?  Unfortunately the answer is no, no, no.  Yesterday, the panic reached a level that caused such a demand on Treasuries, that the total return of some short-term paper went negative.  That's right...the premium paid was higher than the return provided by the yield.  So keeping your cash under the mattress is better than an investment in some Treasuries, and apparently safer than the financial market. Suddenly, guess what may become the most attractive way to protect your money?  Think about it...you can touch it, get a tax break, live in it too.  Yes, Real Estate is starting to look pretty good, especially since it has become more reasonable priced.

I saw on the local news last night, that single family home sales in nearby Reno were up some 24% over last Year.  After a 13% price correction, I can understand why.  Home sales are up in many locations across the country after an 18 month decline.  With interest rates still low it just makes sense to buy at these prices.  Experts that I've seen on the financial tv networks say that in past housing price declines the bottom is vee shaped and prices tend to rebound quite dramatically.  Let's hope so. 

Originally Posted by Deb Howard
on 6/9/2008 11:16:31 AM

While Tahoe has been a popular destination of International visitors and investors historically, it is becoming ever more so based on a few things that I have observed
in addition to my notes on the NAR DC visits;

1) globalization and immediate access to information expanding the exposure of our resort market to the international market,
2) access to resorts (you can get here from there)
3) Desirability of 4 seasons resort,
4) As said earlier - Values! safe investment, enjoyment, weather and good exchange rates are driving a lot of new interest.

The move up market of existing foreign investors is another market we are experiencing.
Antidotally I have a couple who are from Singapore who are looking to upgrade from a vacation income property they already own here in Tahoe to another larger grander property to retire to 6 month out of the year. (check on guest/foreign homeowner visitor visas, another good topic to investigate). Water, views, floor plan to accommodate entertaining their friends from around the world and located in a safe or gated community are their top criteria. They also bring with them a whole host of friends and family that will join them in investing in Tahoe.
More to follow.

Deb Howard