homes for sale

Roman Kreminski lives in South Lake Tahoe and, like many others, makes his living in building "Spec Homes," the process of building and selling homes for sale without any particular buyer in mind. It used to be a good business for Kreminski based on speculation of a strong real estate market and buyers waiting to invest in paradise.

He kept about five local families working full time to build the homes.

After Thursday's South Lake Tahoe Planning Commission meeting Kreminski said, "I'm done."

Now that July has drawn to a close, the South Lake Tahoe real estate figures are in.

The number of people deciding to sell their Tahoe homes rose slightly in July, with an increase of 4.6% in new listings, while the total number of homes on the market has risen 8.9% in the past 12 months. Also on the rise is the median sales price. In July, the median price for closed sales was $346,000. In July of 2014, it was $339,000.

Pending sales were also on the rise while closed sales stayed even from last year, though up from May and June.

So, what does this mean?

The real estate market in South Lake Tahoe continues to show strong numbers, no matter which set of figures you look at. What was especially high in October was the median price of homes sold.

Median Sales Price Continues to Rise

We are still seeing a lot of action in the South Lake Tahoe real estate market! The July, 2013 figures were just released and they continue to show that interest in buying a home in Lake Tahoe is still growing. During the last year we saw home buyers flock to Lake Tahoe for a few reasons: low interest rates and an increased interest to buy something before they felt it was too late. When we saw more home listings enter the market this summer we saw the sales frenzy subside a bit.

There was a story in this week's USA Today that caught my interest and made me research facts here in Lake Tahoe. The article said that the number of signed contracts to buy homes in the U.S. rose in March to the highest level in 3 years.

Lake Tahoe closed sales

115 homes are currently in escrow on the California side of Lake Tahoe and 37 homes are in this status on the Nevada side. The Lake Tahoe California figures are 10% higher than last year at this time and the Lake Tahoe Nevada figures are up 60%!

When looking at the entire state of California the average price of a home for sale is $307,600. In Nevada you have a huge spectrum of home values due to the diversity of cities, therefore the average sales price is only $145,400.

According to a recent article in the Wall Street Journal there are 6 reasons why there is a declining inventory of homes for sale in the United States. These 6 reasons also apply to Lake Tahoe, on both the California side and Nevada sides of the Lake.

Their 6 reasons why housing inventory is declining

1.  Many homeowners are underwater (owe more than their home is worth) so they are unlikely to sell until home values rise more than they have already. More than 10 million home owners are in this position in the US.

Lake Tahoe real estate had seen a steady down trend in home sales over the last few years, and the last 9 months has seen a steady upward climb. In February of 2013 buyers seemed to be on a buying frenzy and sellers were deciding not to sell and hold on for a higher sales price in the future. The big topic of conversation among Lake Tahoe Realtor's is the lack of homes for sale and how sellers are pulling their homes off of the market.

Closed Sales of South Lake Tahoe Homes

We saw a lot of home buyers in Lake Tahoe during 2012, setting the stage for another strong year in real estate.

In Lake Tahoe real estate, each month brings better news than the month before. When comparing September to the month and year before there were more closed sales, fewer homes on the market, fewer new listings, and a new category - increasing median sales price!

Twenty homes closed escrow in South Lake Tahoe during the week of September 4-11, 2012. Homes are continuing to sell at a very rapid pace!

The National Association of Realtors (NAR) released their monthly report, and the national news is much as it is in Lake Tahoe: "Sales of existing homes rose in July even with constraints of affordable inventory." Their report stated that monthly sales rose in every region but the West, where inventory is very tight.

Low Inventory of Homes in Lake Tahoe

Just a few years ago home buyers were choosing the Nevada side over the California side when looking for a Lake Tahoe home to purchase. Taxes were lower and schools were better so Nevada was more attractive. But is that still the feeling? There's good news, and bad news, depending on which neighborhood/state you're set on owning a home in.

Shining Example of Schools in South Lake Tahoe, Calif.

South Lake Tahoe Real Estate is comprised of homes for sale in some fantastic neighborhoods. The Tahoe Keys is one of those and has long been known as home to upper scale houses with boat docks in the back yard, fantastic views of the lake and a very appealing place to call home. Built in the late 1950s and early 1960s, this 740 acre development at the mouth of the Truckee River was created with lakefront living in mind with its 11 miles of backyard waterways.