Eastern Plumas & Sierra Counties Newsletter - August 2018

NEWS YOU CAN USE

AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

TABLE OF CONTENTS Dickson Realty Portola Office Information Plumas Fun Facts

PAGE 2

2018 2nd Qtr. Statistics

3-5

Guild Mortgage Corner

6

Tax Deductions for Vacation Homes What’s on Your Agenda?

August Calendar and Events

7-8 9 10-12

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

The Dickson Realty Portola Team is always available to provide excellent and dedicated client service whether you are considering buying or selling a home. Our team of seasoned professionals, all Realtors®, possess the most current and comprehensive market information and, combined with their knowledge and experience, they are uniquely qualified to be expert guides in your real estate venture. Call, e-mail, visit our office, or access us on the web. We are here for you 24/7.

Office Phone: 530-832-1700 Email: portolainfo@dicksonrealty.com Web: www.DicksonRealty.com Plumas County the Geography: According to the U.S. Census Bureau the county has a total area of 2613 sq.mi., of which 2553 sq.mi. is land and 60 sq.mi. (2.3%) is water. Plumas County is located in the far northern end of the Sierra Nevada Range. The area's rugged terrain marks the transition point between the northern Sierra Nevadas and the southern end of the Cascade Range. Lassen Peak, which is the southernmost volcanic peak in the Cascade Range, is found just north of Plumas County's border, and part of Lassen Volcanic National Park extends into the northwest corner of the county.

Plumas National Forest’s 1,200,000 acres offer a wide variety of outdoor recreation opportunities, including hiking, camping, kayaking, swimming, mountain biking, hunting and fishing. The area features more than 100 natural and artificial lakes. Many of the natural lakes are glacial in origin and can be found in and around Lakes Basin Recreation Area. The artificial lakes include Lake Almanor, Lake Davis, Frenchman Lake, Little Grass Valley Reservoir, Antelope Lake, and Buck's Lake. Plumas County also features more than 1,000 miles of rivers and streams. All three forks of the Feather River run through the area.

The following pages provide Residential Sales Statistics for the areas of Graeagle, Portola, Loyalton, Chilcoot and the Golf Course Communities of Whitehawk, Grizzly Ranch, and Gold Mountain The sales statistics are a comparison of sales activity for the current Year To Date June 2018 when compared to the same period in 2017. Information contains Median and Average Prices, Lowest and Highest Sales, Number of transactions and the % change in each category.

The sales shown are for Single Family Residential, Condominiums and Townhouses in each of the market areas.

(Time share and/or shared ownership are not included in the statistics presented.)

The data source is the Plumas Multiple Listing Service for quarterly period for the quarterly period January – June 2017/2018 with data pulled on July 10, 2018.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

GRAEAGLE * Median Sales Price Average Sold Price Lowest Sold Price Highest Sold Price Average Days on Market Homes Sold

YTD JUNE 2017 $ 267,250 $ 340,500 $ 30,000 $ 950,000 271 28

YTD JUNE 2018 $ 367,000 $ 350,700 $ 90,000 $ 734,000 172 23

% Change 37% 3% 200% -23% -37% -18%

Graeagle $350,700

Average Sold Price

$340,500 $367,000

Median Sales Price

$267,250

YTD JUNE 2018

PORTOLA * Median Sales Price Average Sold Price Lowest Sold Price Highest Sold Price Average Days on Market Homes Sold

YTD JUNE 2017

YTD JUNE 2017 $ 142,500 $ 136,094 $ 26,000 $ 247,200 225 17

YTD JUNE 2018 $ 127,500 $ 152,361 $ 81,500 $ 258,000 $ 220 $ 18

% Change -11% 12% 213% 4% -2% 6%

Portola $152,361

Average Sold Price

Median Sales Price

$136,094 $127,500 $142,500

YTD JUNE 2018

YTD JUNE 2017

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

LOYALTON * Median Sales Price Average Sold Price Lowest Sold Price Highest Sold Price Average Days on Market Homes Sold

YTD JUNE 2017 $ 203,500 $ 214,583 $ 92,500 $ 409,000 135 6

YTD JUNE 2018 $ 293,000 $ 312,350 $ 190,000 $ 442,000 $ 74 $ 8

% Change 44% 46% 105% 8% -45% 33%

Loyalton $312,350

Average Sold Price

$214,583 $293,000

Median Sales Price

$203,500

YTD JUNE 2018

CHILCOOT * Median Sales Price Average Sold Price Lowest Sold Price Highest Sold Price Average Days on Market Homes Sold

YTD JUNE 2017

YTD JUNE 2017 $ 180,000 $ 236,000 $ 165,000 $ 363,000 91 3

YTD JUNE 2018 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 158 $ 1

% Change -17% -36% -9% -59% 74% -67%

Chilcoot $150,000

Average Sold Price

$236,000 $150,000

Median Sales Price

$180,000

YTD JUNE 2018

YTD JUNE 2017

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

Golf Course Communities Whitehawk, Grizzly Ranch, Gold Mountain

Median Sales Price Average Sold Price Lowest Sold Price Highest Sold Price Average Days on Market Homes Sold

YTD JUNE 2017 $ 460,000 $ 611,812 $ 265,500 $ 1,100,000 345 8

YTD JUNE 2018 $ 475,000 $ 573,000 $ 365,000 $ 1,133,000 $ 173 $ 5

% Change 3% -6% 37% 3% -50% -38%

Golf Course Communities $573,000

Average Sold Price

$611,812 $475,000

Median Sales Price

$460,000

YTD JUNE 2018

Overall Market Graeagle, Portola, Loyalton, Chilcoot

Median Sales Price Average Sold Price Lowest Sold Price Highest Sold Price Average Days on Market Homes Sold

YTD JUNE 2017

YTD JUNE 2017 $ 179,000 $ 277,026 $ 27,000 $ 950,000 271 19

YTD JUNE 2018 $ 245,000 $ 269,132 $ 81,500 $ 734,000 $ 173 $ 50

% Change 37% -3% 202% -23% -36% 163%

Overall Market $269,132

Average Sold Price

$252,761 $245,000

Median Sales Price

$196,500

YTD JUNE 2018

YTD JUNE 2017

Dickson Portola Team

289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

Supplemental Tax Bill Assessments New Property Owner’s Responsibility A supplement tax bill is the difference between the taxes due on the old property value (seller’s property) and the new assessed value of your property (the buyer’s property). It is important to understand that these Supplemental Assessments are ‘in addition’ (supplemental) to the annual property tax bill. The new property owner (you) are responsible for this bill.

The lender does not have knowledge of the final amounts of the assessment or the timing; that is up to the county assessor.

The supplemental assessment amounts are not available during the escrow process yet, are the responsibility of the new owner. This is true even if the regular annual property taxes are paid by a lender through an impound account. The tax bills or refunds for these assessments are mailed directly to the new owner of the property. Any questions on these bills can only be answered by the assessor’s office. Supplemental Assessments are issued by the county when a property changes ownership by the county tax assessor. If you received a Notice of Supplemental Tax Assessment, the Assessor was required to reassess your property.

General information: In some cases you may receive two or more supplemental tax bills. The number of supplemental bills is dependent on the date the ownership changed.

If the date is: Jan 1 – May 31: You will receive 2 supplemental assessments. The first will be prorated from your date of event to the following June 30th. The second will be for the entire subsequent assessment year from July 1st to June 30th.

June 1 – December 31: You will receive 1 supplemental assessment prorated from your date of event to the following June 30th.

To contact the county or for more information, please go to the county where your property is located. Here are some of the common counties websites: v Placer County: https://www.placer.ca.gov/departments/assessor/supplemental-assessments v Nevada County: https://www.mynevadacounty.com/faq.aspx?qid=176 v El Dorado County: https://www.edcgov.us/Government/Assessor/Pages/supplemental assessments.aspx

If you have any questions regarding loan limits, refinancing or purchasing a home, please feel free to reach out to The Rice Team.

11050 Pioneer Trail Suite 201 Truckee, CA 96161 Phone: (530) 582-9991 Fax: (530) 582-9995. Web:wwwTheRiceTeam.com

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

Tax Deductions for Vacation Homes

for more than 14 days, you must claim the income.

Now, if you own what you consider a vacation home but never visit it, or only rent it out, other tax rules apply. Without personal use, the law considers the home an investment or rental property. Time spent checking in on the house or making repairs doesn’t count as personal use.

Tax Deductions for Rental Owners

Tax deductions for vacation homes vary greatly depending on how much you use the home and whether you rent it out.

A vacation home offers a break from the daily grind, but it can also offer a break from taxes. The IRS allows most owners to lower taxable income by taking tax deductions for vacation homes. What’s deductible depends on a number of factors, especially how often you visit and whether you allow renters.

Don’t limit your notion of a vacation home to a beach cottage or a mountain cabin. Even RVs and boats can count, as long as there are sleeping, cooking, and bathroom facilities. Tax deductions for vacation homes are complex, so consult a tax adviser.

Is Your Home a Vacation Home?

If you bought your vacation home exclusively for personal enjoyment, you can generally deduct your mortgage interest and real estate taxes, as you would on a primary residence. Use Schedule A to take the deductions.

The tax law even allows you to rent out your vacation home for up to 14 days a year without paying taxes on the rental income.

You might be able to deduct any uninsured casualty losses too, within limits, though you can’t write off rental-related expenses.

(More on those below.) If the home is rented

As an exclusive rental property, you can deduct numerous expenses including property taxes, insurance, mortgage interest, utilities, housekeeping, and repairs.

Even towels and sheets are deductible. Use Schedule E. You can also write off depreciation, the value lost due to the wear and tear a home experiences over time.

Treat the rental property like a business, says Mark Steber, chief tax officer at Jackson Hewitt Tax Services. Keep detailed records and maintain a separate checking account. Figure you’ll spend a couple of hours a week, on average, over the course of the year managing the property.

To maximize deductions, you need to be actively involved in the rental property. That means performing such duties as approving new tenants and coming up with rental terms. You also need to own at least 10% of the property. See IRS Publication 527 for details.

If your adjusted gross income is below $100,000, you can deduct as much as $25,000 for rental losses — that is, the excess of your rental expenses over your rental receipts. The deduction gradually phases out between an adjusted gross income of $100,000 and $150,000. You can carry forward excess losses to future years or offset losses to offset gains when you sell.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

Mixed Use of a Vacation Home Congress Closes Tax Loophole The tax picture gets more complicated when in the same year you make personal use of your vacation home and rent it out for more than 14 days. Remember, rental income is tax-free only if you rent for 14 days or fewer.

The key to maximizing deductions is keeping annual personal use of your vacation home to fewer than 15 days or 10% of the total rental days, whichever is greater. In that case the vacation home can be treated as a rental, meaning you get the same generous deductions. To avoid going over the 10% limit, essentially you shouldn’t use your vacation home more than one day for every 10 days you rent it.

Make personal use of your vacation home for more than 14 days (or more than 10% of the total rental days, if this is greater than 14 days), however, and your deductions may be limited. For example, suppose you rented your vacation home for 180 days last year. You could use the home for up to 18 days of personal use before your deductions would be limited.

If you exceed the maximum, some deductions are limited; those related to the rental of the property are again limited by the ratio of actual rental days to the total days of use.

Let’s say you have a vacation home you personally use for 25 days and rent for 75 days. That’s 100 total days of use, and it exceeds the greater of 14 days or 10% of the rental days. Therefore, your deductions are going to be limited in total and will also have to be allocated to personal and rental use by the ratio of time you rented the house compared with the total use. So you can only write off 75% of the expenses as rental expenses — 75 rental days divided by 100 total days of use works out to 75%.

Some of the personal expenses, such as mortgage interest and real estate taxes, may be deductible on Schedule A.

A popular strategy used by owners of vacation homes to avoid paying capital gains on a sale was to convert a vacation home into a primary residence. This was accomplished by living in the home for two years out of the previous five before selling.

Doing so qualified the sale for an exclusion from taxes for a profit of up to $250,000 for single filers and $500,000 for joint filers.

While the exclusion remains available, Congress closed a loophole for vacation homes. For 2009 and later years, you pay regular cap gains taxes on the portion of the gain that’s equivalent to the time you used the home as a vacation home after 2008.

Let’s say you bought a vacation home on Jan. 1, 2003, and it becomes your primary residence on Jan. 1, 2011. Two years later, you qualify for the cap gains exclusion and decide to sell on Jan. 1, 2013. You’re liable for capital gains taxes on 20% of the gain.

Why? Because for 20% of the 10 years you owned the property, it wasn’t eligible for the exclusion: In 2009 and 2010, you used it as a vacation home. But you can take the exclusion for the other eight years — 2003 through 2008, when the old rules applied, and Jan. 1, 2011, to Jan. 1, 2013, when the place was used as a primary residence.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.

DONNA FUSCALDO has written about personal finance for more than decade for Dow Jones Newswires, the Wall Street Journal, and Fox Business News.

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Dickson Portola Team

289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE

AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

What’s on your agenda?

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities

AUGUST 2018 SUN

MON 29

TUES 30

WED 31

THUR 01

FRI 02

Downieville Classic Bike Race 05

12

06

13

07

14

08

09

Plumas County Fair

Plumas County Fair

15

16

Portola Concert in the Park

SAT 03

Downieville Classic Farmer’s Market

10

04

Sierra Valley Farms Blues & Views 11

Plumas County Fair

Plumas County Fair

Farmers Market

Plumas Dinner in the Park

Portola Concerts in the Park

Sierra Valley Farms Dinner Series

17

18

Farmers Market Plumas County Fair

19

Portola Concerts in the Park 20

21

22

23

Farmers Market

24

Portola Concerts in the Park Portola Railroad Days

26

27

28

29

30

Graeagle Antique & Collectibles Fair

31

Graeagle Antique & Collectibles Fair

PORTOLA RAILROAD DAYS 02

Americana Festival

Farmers Market

03

04

05

06

07

Farmers Market

25

PORTOLA RAILROAD DAYS 01 Americana Festival Graeagle Antique & Collectibles Fair 08 SAVE THE DATE: 8TH Annual Calpine Marketplace

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities Date and Event August 2, 3, 4, 5

Where Held Downieville, CA

Time

Cost Contact Info.

All day events starting at 8:00 am

DOWNIEVILLE CLASSIC

Spectators Free

Details One of the world’s premiere mountain bike races, bookended by an awesome festival.

The Downieville Classic has been rolling for over 20 years and is considered one of the Top 10 Mountain Bike Festivals in the US

by Outside Magazine. Live music, premium beer, food vendors and an allweekend mainstreet industry expo top off the event.

Saturday is a gnarly 29-mile point-to-point cross country race up to the Sierra Crest and the descending into Downieville.

Sunday is fast, technical 15-mile downhill with racers reaching over 40 mph.Racers podium on Saturday and Sunday for their respective races, culminating in Sunday’s All Mountain World Championships.

Mainstreet shuts down all weekend for the industry expo, allowing sponsors to line the streets and exhibit their finest products to a captive, engaged audience of racers and spectators.

August 3, 10, 17, 24

Portola City Park

7:00 pm

PORTOLA CONCERTS IN THE PARK

The FREE Portola Friday night outdoor summer concerts run each Friday until August 24, 2018, at the Portola City Park, on Gulling Street. Portola , CA. 96122 Now all you have to do is bring a lawn chair, refreshments and enjoy the concerts!

August 4 SIERRA VALLEY FARMS BLUES & VIEWS

1329 County Road Beckworth, CA

5:30 pm

Summer concert series.

Call (530) 832-0114 or Visit www.sierravalleyfarms.com To get information on all of the scheduled events to include dinner revues, music series and the farmer’s market.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

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AUGUST 2018 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Graeagle, Portola, Loyalton, Chilcoot and Golf Course Communities Date and Event

August 8, 9, 10, 11, 12 PLUMAS SIERRA COUNTY FAIR

August 11

Where Held

Time

Cost Contact Info.

Plumas Sierra County Fairgrounds

All day events (530) 283-6272

5:oo pm

Contact the park museum at 530-8362380 or Tom Hardie at 530-246.4288 for more information.

All day events

Patricia Ryan (530) 832-4566

DINNER IN THE PARK

August 24, 25, 26 PORTOLA FRIENDS OF THE RAILROAD

PORTOLA CITY PARK Corner of Gulling and First Avenue

www.portolarailroad days.com

RAILROAD DAYS

August 31, SEPT. 1, 2

GRAEAGLE FIRE HALL

GRAEAGLE ANTIQUE & COLLECTIBLES FAIRE

AUGUST 31, SEPT. 2

Download all events and ticket pricing at: Plumas-sierracountyfair.net

Quincy, CA

Plumas Eureka State Park

Details

Fri. 12:00-6:00 Sat. 10:00-5:00 Sun. 10:00-400

LOST SIERRA CHAMBER OF COMMERCE (530) 836-6811

Plumas Eureka State Park Association is hosting its 7th annual “Dinner in the Park” on Saturday, August 11, 5:00 p.m. at Plumas Eureka State Park. Tickets are $60 per person. All proceeds will go to benefit Eureka State Park Association.

Now celebrating its 34th year, Portola Railroad Days is an annual community festival celebrating Portola's rich history as a railroad town and is held at Portola City Park in August each year. Please go to our website for more information.

Annual Antiques & Collectibles Faire happens Friday through Sunday, August 31 through September 3 at the Graeagle Firehall. Reputable vendors will have their goods for you to see and purchase. For additional information call 530-836-6811.

Celebration of Rural Life Music, Food, Vendors www.plumasamericana.com for full details and to buy tickets Tent and RV camping available

Plumas Sierra County Fairgrounds

AMERICANA FESTIVAL Quincy, CA $30 for the week-end

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700