How To Determine If You Are In A Seller’s Market

Whether you are listing or buying, the real estate term everyone is using is “Seller’s Market”. Seller’s know that the market is theirs, while buyers know the market is not in their favor. But what does this term really mean? Simply put: There isn’t enough inventory to meet demand. Homes for sale in South Lake Tahoe go quickly and for either asking or over. When listing or buying South Lake Tahoe homes for sale, it is crucial to know what kind of market you are in. This knowledge helps you understand what you need to do as a buyer or a seller to have a successful experience as well as plan accordingly.

Now that you know what a seller’s market is, you may be wondering where they are located. Currently, most of the U.S. is in a seller’s market. Of course, being neighbors with the Bay area, we already know this. If you are wondering if South Lake Tahoe real estate is in a seller’s market, the short answer is yes. Our current month supply for 96150 is 3.6. Anything less than 4 is in favor of the seller and in order to be considered balanced, we need a 6 month supply. The more complicated answer is why the usage of a South Lake Tahoe realtor is key. Each neighborhood has their own market stats. For example, most South Lake Tahoe real estate areas are in a seller’s market but there are some neighborhoods that are not. Tahoe Keys for example has a month supply over 6. They also happen to have a higher price point. When you work with a South Lake Tahoe realtor, they can provide a tailored market analysis based on comparable solds.

If you are buying South Lake Tahoe homes for sale, you might be wondering when this will ease up. Real estate predictions are hard to nail with 100% accuracy. However, industry experts have suggested that the tight inventory will start to ease up by the end of the year. There are a lot of builders trying to rush to satisfy buyer’s needs. Unfortunately, home prices and interest rates are also supposed to go up as well. The best way to help yourself as a buyer in this kind of market is to align yourself with a qualified realtor in South Lake Tahoe. They will work to get you into brand new listings as soon as possible so you can get an offer in quickly. They will also make sure you are prepared ahead of time. From getting pre-approved to helping you determine what exactly it is you want vs. need. These types of details prevent you from wasting time in a market where you don’t have a lot to begin with. When it is time to make an offer, they will help you craft a competitive one, figure out when it is appropriate to waive contingencies or broaden your search to other areas. They will offer you options as they guide you through this exciting journey.

If you are wondering how this happens, there are actually a few factors that go into it. Job growth is one aspect. This brings population growth, which is another aspect. These two create demand, which can exceed the supply. Housing starts is another. This term is used for the number of new construction started by builders. When an area has a lot of new housing starts, chances are, the demand is there which means there are a lot of buyers and not enough homes for sale in South Lake Tahoe to go around.

So how can you tell if you are currently in a seller’s market? Well, your realtor in South Lake Tahoe, for one. Other indicators are how long South Lake Tahoe homes for sale are sitting on the market before accepting an offer. The percentage of list price is another. If the home is getting 100% or over of the asking price, chances are good that you are in a HOT market. If the prices for South Lake Tahoe homes for sale continue to go up, this is another good indicator that as buyer, you may have your work cut out for you. In fact, this is why the use of a realtor in South Lake Tahoe is crucial. Regardless of if you are listing or buying homes for sale in South Lake Tahoe, a local realtor can help you navigate the entire process from start to finish. Need help? Give me a call! I would be happy to help!  

Compromises To Consider When Buying South Lake Tahoe Real Estate

When it comes to buying South Lake Tahoe homes for sale, lots of folks go into it with a Pinterest perfect check list and are quickly disappointed when they realize not every home looks something out of a Crate & Barrel or Pottery Barn ad. At least not for their desired budget, anyway. If you are currently looking at homes for sale in South Lake Tahoe, you may be realizing that in order to stay in your budget, you may need to make a few changes. As always, working with a qualified South Lake Tahoe realtor is key. We will only suggest South Lake Tahoe homes for sale that are within your budget and match the criteria as close as possible. It is standard for us to show a little beyond the max budget as we don’t want to rule out a property that is just a few thousand dollars extra that didn’t show up due to internet search parameters. However, steer clear from working with someone who is showing you properties that are well beyond your budget. Time is of the essence in a seller’s market and you do not want to waste your time going into South Lake Tahoe homes for sale that are a pipe dream. It wastes your time, and the owners time. Luckily, there are some things on the list that may not be a “must have” like you originally thought when you set out on your homebuying journey.  Check out these areas that are worth compromising on when buying a home for sale in South Lake Tahoe!

Location, Location, Location!

This is one of the most important aspects of buying South Lake Tahoe real estate. Or is it? Of course, it is always good to know what you want and where you want to be but look at the reasons for why you are focusing on an area. Is it because of school or proximity to work? If so, stick to your guns and stay focused on those areas. Is it because you want to be closer to friends or certain amenities you don’t absolutely need? If so, you may need to really think about whether or not those aspects are really that important to you. The good thing with South Lake Tahoe real estate is that our mountain town is smaller, so you don’t have to sacrifice a lot when it comes to distance. However, if you have your heart set on a certain neighborhood and are finding the homes are beyond your budget, check out a neighboring area that may cost less. Your South Lake Tahoe realtor will be able to offer comparable properties in comparable neighborhoods.

A Large Yard

Before setting out to tour homes for sale in South Lake Tahoe, you may feel like you NEED a huge yard. Of course, a large yard will cost you. Do you want a home for sale in South Lake Tahoe on a parklike setting if it means you have to sacrifice all the other things on your list? Think about the upkeep, and the cost of the upkeep. Once again, if entertaining is your thing, this may be worth it. However, if you like your quiet time and space, having the largest yard in your group could mean that your house becomes the designated location for every birthday party and holiday. If that is not what you want, downsizing your desired yard size is something you should think about. The good thing is, homes for sale in South Lake Tahoe are surrounded by tons of outdoor options. You will probably spend more time on a trail or at the beach compared to a large back yard.

Bigger Isn’t Always Better

When shopping for homes for sale in South Lake Tahoe, you will notice that the bigger the house, the higher the price is in almost all scenarios. That is home buying 101. More space costs more money. If you find a home for sale in South Lake Tahoe that matches your price and neighborhood, but it is smaller than what you want, ask yourself-do you really NEED the extra bedroom, bathroom, whatever it is that you feel is the one thing missing?

 

As always, working closely with an experienced South Lake Tahoe realtor who has your best interest at heart is going to make for a successful real estate journey. Know what you want before you go, be open to suggestions or alternatives and feel free to ask questions. This is a big financial investment. You should understand how the process works so feel free to ask questions if you have them!

South Lake Tahoe Real Estate Update

When it comes to buying and listing homes for sale in South Lake Tahoe, the best thing you can do for yourself is finding out what is happening in the South Lake Tahoe real estate market and your local neighborhood specifically. Find out what the average sold price is, what the month supply is and how many days South Lake Tahoe homes for sale are going from active to pending. All of these details can benefit both transaction sides. As a seller, you know what your competition is selling at and you can price accordingly. Additionally, you get a good idea of how long you have until you will likely need to move. Even more reason to de-clutter and start packing! As a buyer, you have all the insider knowledge that can help you craft a great offer. Of course, the most important thing you can do is align yourself with a qualified South Lake Tahoe realtor. Not only can we give you this information first hand, but we act as your guide and advocate from start to finish and beyond. So how is our local market doing? Let’s look at the latest report.

The good news for those interested in listing homes for sale in South Lake Tahoe is that prices have gone up. Sold prices and median prices are both up. Not only that, but they are up from this time last year and just last month. The average sold price for South Lake Tahoe real estate has increased 5.7% and is now at $528,783. The median sold price for South Lake Tahoe homes for sale is up 7.1% at $439,000. Keep in mind, this is for 96150 as a whole. If you live in Tahoe Keys or Country Club Estates, the numbers will vary compared to Tahoe Sierra or Bijou 1&2.  This is why it is so important to work with an experienced South Lake Tahoe realtor who knows to look at the comparable sales in your immediate area. The best way to figure out your negotiation power is by using the percentage of list price. This tells you what percentage of the asking price homes for sale in South Lake Tahoe are getting. At the moment, this is at 97.%.

As far as inventory, South Lake Tahoe homes for sale are down 4.8%. New South Lake Tahoe real estate listings are up slightly at 8.5%, which is great news for buyers. Although, closed sales are down 4.8% along with pending sales, which are down 3.1%. We are definitely still in a seller’s market with a 3.6 month supply. A balanced market needs 6.

If you are looking for more information or need a South Lake Tahoe realtor to guide you through a buying or selling experience, feel free to give me a call. I would be happy to help!