Lake Tahoe, NV Real Estate: 1st Quarter Market Report 2017

If you are looking to purchase Lake Tahoe, NV real estate, the numbers for the first quarter are in and the results are looking pretty good.

The number of sales is higher this year compared to last year. Also good news is that both the average and median price for Lake Tahoe, NV real estate have gone up by a pretty impressive amount. If you are buying real estate in Lake Tahoe, NV this means you are looking at higher prices compared to the past few years. If you are selling real estate in Lake Tahoe, NV, this simply means you likely will get more at the time of resale. 

The dollar per square foot has also gone up. The list to sale price (the percentage of the list price the home is receiving) has dipped a little bit, but nothing significant. Speaking of decreases, the median days on the market has also dropped compared to last year. On the day this blog was published, there were 72 active Lake Tahoe, NV real estate listings with a median price of $1,987,500 and 13 homes were in escrow with a average price of $1,539,030. For more info on buying real estate in Lake Tahoe, NV, give us a call as I would be happy to help! 

# of Sales 117 101  
Median Price $850,000 $670,000  
Average Price $1,345,546 $958,004  
Sale to List % 94.3% 94.6%  
Median Days on Market 158 170

South Lake Tahoe Real Estate: 1st Quarter Market Report 2017

The South Lake Tahoe real estate market had several positive notes when comparing March 2017 to March 2016. In fact, almost everything was up. The closed sales were up by 6.4%. The median sold price was up by 13.3% and the average sold price was up 14.4%. If you have been thinking of putting your South Lake Tahoe real estate on the market, the chances are high that the amount you can sell for will be more than last year. The percentage of list price went up slightly, by 1% along with the days on the market.

Now month supply, which determines what type of market we are in, went down 33.3%. Anything under 4 is considered a sellers market while anything over is considered a buyers market. This is good news for sellers. It means they have control of the market because supply is low and demand is high. The result is higher listing prices which generally means sellers stand to make more at the time of resale. Now buyers, on the other hand, have to be a little more aggressive with their approach. While Real estate in South Lake Tahoe isn’t so low that bidding wars and over asking offers are a common thing, buyers do need to get serious about taking swift action. Chances are if you wait to view a home or make an offer, it will gone by the time you decide to make a move. 

Of course it is important to note that these stats are for 96150 as a whole. Every neighborhood has it’s own statistics as well. For example, Tahoe Keys has the highest median and average sales price, but with a month supply high enough that they are in a buyers market. If you would like information on a specific area or general South Lake Tahoe real estate information, give me a call. I would be happy to help! 

South Lake Tahoe Market Comparison 2017 2016
Number of Sales 765 719
Median Home Price $408,000 $360,000
Average Home Price $496,405 $434,055
Average List to Sale Ratio 96.7% 95.7%
Average Dollar Per Square Foot $285 $254
Days on the Market 89 90
Month Supply 3.4 5.1

2015 Real Estate Forecast

It’s that time of year when we try to dust off the old crystal ball and see if there are any indications as to what the upcoming year might have in store for us.  While we can never seem to totally rely on that crystal ball’s findings (should have sold our Lake Tahoe house in 2006 despite that ball telling us to hang on), it is always a good idea to at least pay some sort of attention.

Buyers will be most pleased with the just released 2015 California real estate forecast.  While the home sales throughout the state are expected to increase slightly, experts are predicting that home pricing gains will be the slowest in four years.  According to the California Association of REALTORS®, “the California housing market is expected to return to a traditional buyers’ market with less investors due to more available homes for sale with prices flattening out and sales rising at a modest pace.”  As the last couple years have put some buyers home purchasing plans on hold due to the home price increase and strict guidelines for underwriting, this year puts home buyers in a better financial position to make a real estate purchase.

Another plus for buyers looking to purchase more affordable homes is that we are seeing an increase in the variety of programs giving home buyers the ability to buy a home with less than the standard 20% down payment.  For example, there are FHA loans that allow buyers to make a down payment as small as 3.5% of the purchase price.  It still makes us nervous when we see offers with these low down payments come across our desks yet they sure seem to be working.  Mortgage interest rates have been the lowest in years and will most likely rise to around 4.5% which is still historically low.  The positive news continues as unemployment is expected to decrease to 5.8% from the previous year  which was 6.2%.  With all of these factors combined, C.A.R. predicts existing home sales will have an increase of 5.8 % next year as well as reach 402,500 homes sold. The median home price forecast throughout California is expected to increase to $478,700, up 5.2% from 2014.  The median home price for homes in the South Lake Tahoe area is currently $336,000.  If the same rate of  5.2% increase holds true for the South Shore, we should see a median home price of approximately $354,000 next year at this time.

The Bay area specifically is expected to outperform compared to other regions due to tighter housing supply and strong job market.   This is important to note as the majority of Lake Tahoe home buyers come from this area.  On a national level, the 2015 real estate forecast varies depending on which economist you listen to. However, there is a general consensus that, like California, home sales will increase.