lake tahoe real estate

PREP IT, PRICE IT and GRAB THE MARKET

The appreciation rate for Lake Tahoe real estate has stabilized to a more moderate rate from past years and is currently being driven by limited supply. If you are considering selling your home soon; take advantage of the season by prepping the interior through de-cluttering, cleaning, painting where necessary and look at your floors to be cleaned or replaced. These are some very cost-effective applications which will show your home in the most favorable of conditions. It also budgets your time for the Spring yard work that will lend curb appeal.

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.

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?

In July of 2014, dozens of Lake Tahoe real estate professionals filled the TRPA board room when a proposal was discussed that would make BMPs mandatory at the Point of Sale for homes.

At that time, the room full of agents, brokers and mortgage companies, all voiced their opinion against the proposal.

After the frantic pace of home sales in South Lake Tahoe over the past two years, things are starting to slow down to a more level pace. Home sales in South Lake Tahoe, California dropped 13% in the month of July, mainly due to the fact that there is a lower inventory of homes priced under $300,000. Homes priced between $435,000 and $650,000 actually saw a rise in closed sales, up 20.5%. There was a huge surge in home sales from 670 a year in 2012, to a peak of 790 for the year ending in May of 2013, back to 678 for the past 12 months.

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%!

The Lake Tahoe real estate market is off to a strong start in 2013, experiencing a 34 percent increase in median home price and a 53 percent leap in average price. Sales volume around the lake is up 61 percent, primarily due to a 133 percent jump in homes sold for more than $1 million. The figures were part of a quarterly report released by Lake Tahoe-based real estate company Chase International.

The current Lake Tahoe real estate market is a tough one for buyers because it has turned into a big seller's market for homes priced under $500,000. Homes are selling so quickly that the moment a buyer sees a home they are interested in it's already in escrow.

A home is one of the biggest, if not THE biggest investment a person will make in their life. Things change, our needs and families change, ideas of what we want change, so this means our home will change. The California Association of Realtors recently came out with this chart of the top ten remodeling projects that increase the value of your home.

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.

18 homes closed escrow on the Nevada side of South Lake Tahoe in October, 2012. This figure shows that interest in real estate at the lake is still strong. To date for the year there have been 127 homes to close escrow in that area, up from 118 in 2011 and 113 in 2010.

Here is the list of homes that closed escrow for the month of October, along with their neighborhood, selling price and asking price (in parenthesis):

148 Tramway #B, Kingsbury Neighborhood, $139,000 ($139,900)

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.

The East Shore continued to outperform the rest of the Lake Tahoe real estate market, which saw home values fall overall during the third quarter. The median price for a single-family home in Lake Tah...