Lake Tahoe real estate market news

Looking at the economic news is enough to give you pause with rising interest rates, stock market volatility and real estate experiencing declining sales numbers and the reduction of appreciation. Our market (Lake Tahoe) will see a small negative impact from interest rates as they affect affordability but the last item, equity growth, will impact our market the greatest. The public is staying in their homes for a longer period historically and supported through the increase in remodeling, appliance and flooring sales. The recovery to pre-recession pricing and more has fluffed the nest and America is turning to that equity for repositioning.

We are in a micro market as a destination resort community. All the Case-Shiller reports, National Association of Realtors, California and Nevada Realtor Association data gives us a window to everything happening out of our area. 70 percent of the Tahoe ownership resides out of area and is impacted in their primary locality by those numbers. Many owners have tapped into that equity to pursue ownership locally in the past and this may create hesitancy within that market sector. Markets correct. Markets do not like uncertainty. Resort markets are the last to respond to trends and the last to recover in response to consumer activity.

We are currently experiencing the seasonal adjustments that are typical to our market, nothing alarming. There was not any knee-jerk reaction to the passage of Measure T with an influx of new listings as owners bailed out of our market. As different investments remain volatile, real estate represents the opportunity for repositioning investment capital and long-term growth. Tahoe is still a value when compared to other resort communities. I foresee a general market of stable pricing with a minor correction in units sold. The luxury market will maintain the same pace of market activity as we experienced in 2018 with the potential for increased activity as capital repositions.

David Cloutier is a NV. Broker-Salesman #12178 and CA. Broker #0105564 with Coldwell Banker Select Real Estate who has been serving the community since 1981. http://david-cloutier.cbselectre.com/