When interest rates are low, buyers are encouraged to take advantage. After all, the slightest increase can impact a buyers power when it comes to purchasing homes for sale in South Lake Tahoe. If your budget is concrete and you can’t afford for wiggle room, the smallest hike can price you out of that dream South Lake Tahoe real estate. Since the start of 2018, rates have gone from 3.95% to 4.52%. At the same time, there has been a slight slow down in demand. Particularly in the younger age groups from 21yrs old to 35yrs old. Whether it is for a growing family or their first investment property, younger buyers understand the value of owning South Lake Tahoe real estate. So why the sudden slow down? Is it due to increased rates? Surprisingly, no. Our country is seeing the biggest shortage in housing supply in nearly 60 years. South Lake Tahoe real estate is currently at a 3.8 month supply, which is definitely in a seller’s market. This is making it difficult for first time buyers to find homes for sale in South Lake Tahoe in general, not to mention within their budget. As the demand has increased and the inventory has decreased, prices have gone up. South Lake Tahoe homes for sale are well above the national average at over $538,000. This number has also increased monthly! This means that millennial buyers, in general, are not being priced out due to increased rates and prices for South Lake Tahoe homes for sale, they simply don’t have enough inventory to choose from.
This means that if you are a buyer, the best thing you can do is work with a South Lake Tahoe realtor. They can get you into homes that match your criteria quickly, which increases your chance at making the first offer. They can also guide you on how to make a competitive offer that sellers will find attractive.
Sellers, if you are in a position to sell, now is a great time. Inventory is low and you still have control of the market. If prices continue to go up, buyers that were able to afford your home, may not be able to.
If you are thinking of buying or selling South Lake Tahoe homes for sale, or are looking for a South Lake Tahoe realtor, feel free to give me a call. I would be happy to help!