The 2020 Lake Tahoe real estate market has kicked off with a bang! Especially when looking at this time last year, experts are predicting that 2020 could see the most competitive home shopping season in years. With a 20.2% year over year increase, buyer demand is strong not just in Lake Tahoe real estate, but across the United States. Not only does the current existing home sales show that closed Lake Tahoe homes for sale has gone up 9.6%, industry experts are forecasting an even higher home price appreciation than originally expected for the year.
The economy has been a hot topic with people predicting another 2008 like crash. It seems that anytime we see prices increasing faster quickly, folks always go back to the housing boom and bust from over a decade ago. However, while we understand that fear, the economy and Lake Tahoe real estate market conditions then compared to now are much different. Let’s look at the facts.
House price appreciate in the 6 years leading up to the crash in 2008 were between 8.6%-11.4%. In the past 6 years, price appreciation for Lake Tahoe homes for sale have been between 4.4%-4.7%. Normal appreciation is 3.6%, so what we have been seeing in recent years is actually very normal price increases.
Housing demand is still high and will continue to be until builders can increase the inventory of starter homes available. Mortgage rates are at an all-time low and folks have seen an increase in their wages. In fact, experts believe that the strength in today’s real estate market will actually help in preventing a setback in our overall economy.
Of course, real estate in Lake Tahoe is a second home resort market, so when comparing to a steady residential market in a city or a suburb with predominantly year-round residences there may be some changes. Every home is different so if selling or buying is something you are interested in doing in 2020, linking up with a Lake Tahoe Realtor is probably your best bet. An established Lake Tahoe Realtor can advise you on the best local lenders, what neighborhoods and homes match your lifestyle and budget and how the local economy will impact your ability to sell or buy according to your specific real estate goals. The bottom line is that overall, the residential housing market has had a very nice start for the year. If you have questions about what this means for your real estate goals, give your Lake Tahoe Realtor a call. If you are not currently working with someone, feel free to call our office. We would be happy to help.