If you are wondering if you can afford to buy South Lake Tahoe real estate, right now is a great time thanks to mortgage interest rates still being low. In fact, they are lower right now compared to this time last year. Of course, before you are start searching for homes for sale in Lake Tahoe, there is actually more that goes into being able to afford property than the current mortgage rates. While those help, South Lake Tahoe real estate prices and personal income have to be considered. Currently, across the United States, we are experiencing an affordability crisis as there is a lack of housing, which has caused demand for homes to increase, along with the cost. With our local market being a resort market, there are a lot of residents who claim that South Lake Tahoe real estate is too expensive, when in reality it is lower than the average and median sold prices for California in general. In fact, there are plenty of properties on the California side of the South Shore hovering around the $300,000 list price. Still not sure if you are ready to buy? Here are 3 things that validate that purchasing now is actually more affordable than just last year.
The Cost Of The Average Mortgage Payment
With mortgages rates falling and slower home price growth, the recent market changes have allowed buyers to catch a breath and not have to make an over asking offer within seconds of a home getting listed. The principal and interest payment for a median priced home actually went down, making buying homes for sale in South Lake Tahoe affordable for a variety of buyers.
First American released their Real House Price Index which noted that the combination of lower mortgage rates and increasing incomes overcame the struggle of affordability. In fact, affordability has reached its highest point since January of 2018.
NAR’S Affordability Index
The National Association of Realtor’s stated that housing affordability on a national level is up from last month and even last year. With all four regions seeing an increase in affordability, the payment as a percentage of the income has gone down in the last 12 months.
While prices for homes for sale in South Lake Tahoe are still rising in some neighborhoods, inventory has also gone up making the cost of buying South Lake Tahoe real estate an affordable reality. If you have questions on the process, feel free to reach out. I would be happy to provide info on a quality lender, market reports on the neighborhoods of interest and general info.