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Lake Tahoe Housing Market!

The South Lake Tahoe housing market is having a sleepy start to 2023 due to limited inventory, higher interest rates, and low housing affordability. There are currently only 51 single family homes and 14 condos/townhouses actively for sale on the entire South Lake Tahoe MLS. Inventory is down slightly from last year (1/4/22) when we had 55 active single family home listings and 11 condo/townhouses for sale.

The biggest indicator that the South Lake Tahoe housing market has slowed is the pending sales count. There are currently only 21 pending

Lake Tahoe Housing market update single family homes and just 1 pending condo/townhouse. Last year to date, there were 50 pending single family homes and just 2 pending condo/townhouses.  

Lake Tahoe Housing Market Listing Price to Selling Price Rates

Many of the homes that are currently listed on the South Lake Tahoe MLS are properties that have been listed for sometime, and the average days on the market for these listings is 103. We are noticing that the properties that have been listed for more than 30 days are selling for around 4% less than the asking price. The properties that are selling that have been listed for over 120 days are selling for 8% less than the asking price on average. The listings that are selling in less than 30 days are selling for less than 2% under the asking price. 

The average days on the market for the listings that have sold over the last 3 months has been 104 days, the median days on the market has been 83. 

DOM Statistics for Sold Listings

  # of Listings % of Total SP % LP
10 9 98.24
27 25 96.20
21 19 96.17
16 14 95.74
33 30 92.21
107 100 95.71

Lake Tahoe housing Market Sales History over the last 3 years

The number of total single family homes and condo/townhouses that were report as sold on the South Lake Tahoe MLS has gone down over the last 3 years. 

In 2022 there were 646 reported sales in the city and county areas of South Lake Tahoe, down from 801 sales in 2021, and 1,016 sales in 2020.

Below is a breakdown by price range of the 22 current pending sales:

  • Under $200,000- 0  0%
  • $201,000 to $300,000- 1   4.5%
  • $301,000 to $400,000- 1  4.5%
  • $401,000 to $500,000- 2
  • $501,000 to $600,000- 5
  • $601,000 to $700,000- 5
  • $701,000 to $800,000- 0
  • $801,000 to $999,000- 4
  • Over $1 Million- 2

In order to successfully navigate the South Lake Tahoe housing estate market, homes sellers are having to price their properties according to the current market conditions.

What Are Your Goals in the Tahoe Housing Market This Year?

If buying or selling a home in Lake Tahoe is part of your dreams for 2023, it’s essential for you to understand today’s  Tahoe housing market, define your goals, and work with industry experts to bring your homeownership vision for the new year into focus.

539 Wintoon Drive
539 Wintoon Drive is a luxurious newer home for sale in South Lake Tahoe offered for $1,349,000!

In the last year, high inflation had a big impact on the economy, the Lake Tahoe housing market, and likely on your wallet too. That’s why it’s critical to have a clear understanding of not just the market today, but also what you want out of it when you buy or sell a home. Danielle Hale, Chief Economist at realtor.com, explains:

“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.”

Here are a few questions you can start thinking through as you fine tune your goals for 2023.

 

1. What’s Motivating You?

You’re dreaming about making a move for a reason – what is it? No matter what’s happening in the Tahoe real estate market, there are still many compelling reasons to buy a home in Tahoe today. Your needs may have changed in a way your current house can’t address, or you could be ready to step into homeownership for the first time and have a space that’s truly your own. Use what’s motivating you as a guidepost in partnership with an expert advisor to help make sure your move will give you a lasting sense of accomplishment.

2. What Does Your Next Home Look Like?

You know you want to move, but how would you describe your dream home? The available supply of homes for sale has grown, and that could mean more options to choose from when you buy. Just be sure to keep your budget in mind and work with a trusted real estate professional to balance your wants and needs. The better you understand what’s essential and where you can be flexible, the easier it can be to find the home that’s right for you.

3. How Ready Are You To Buy?

Getting clear on your budget and savings is essential before you get too far into the process. Working with a local agent and a lender early is the best way to make sure you’re in a good position to buy. This could include planning how much to save for a down payment, getting pre-approved for a home loan, and assessing your current home equity if your move involves selling your existing house.

A Professional Will Guide You Through Every Step of the Process

Buying or selling a home in Tahoe is a big process that takes expertise to navigate. If that feels a bit overwhelming, you aren’t alone. According to a recent Harris Poll survey, one in five respondents see a lack of information or knowledge about the homebuying process as a barrier from owning a home. Don’t let uncertainty hold you back from your goals this year. A trusted expert can bridge that gap and give you the best advice and information about today’s market.

Bottom Line

Let’s connect to plan how your dreams for 2023 can become a reality. 

Is Now the Time to Sell Your Tahoe Home?

Is now the time to sell your Tahoe home?

 

Reasons To Sell Your House This Season [INFOGRAPHIC] | MyKCM

Some Highlights

Is now the time to sell your Tahoe home? Although none of us has a crystal ball, there are some encouraging signs for sellers that now may be a great time to list your home for sale and to take advantage of the low inventory on the South Lake Tahoe MLS.

  • If you’re planning to make a move but aren’t sure if now’s the right time, here are a few reasons why you shouldn’t wait to sell your home in Lake Tahoe.
  • The low inventory of homes for sale in South Lake Tahoe is making it challenging for buyers that are actively looking to purchase a property. There is actually a decent number of buyers looking to purchase a primary residence, second home, and even investment properties in South Lake Tahoe despite the current interest rates.
  • Mortgage interest rates have recently decreased slightly due to slowing inflation which is a sign that rates may have peaked earlier than expected.
  • There are currently only 76 single family home listings and 11 condominiums and townhouses that are listed as “active” on the South Lake Tahoe MLS. There are 32 pending sales which means that 26.9% of the total inventory is in escrow
  • The supply of homes for sale, while growing, is still low today. Plus, serious buyers are out looking right now in the Lake Tahoe area, and many are hoping to avoid falling into the rental trap for another year.
  • Let’s connect to determine if selling your house in Tahoe before the new year is the right move for you.

If you would like to discuss the current South Lake Tahoe real estate market conditions please send me an email to bjohnson@chaseinternational.com or text me at 530-416-2625 to set up a time. You can also click on the following link for a free CMA to find out what your home is worth in todays changing market. 

Homeownership in Lake Tahoe Is an Investment in Your Future!

Homeownership in Lake Tahoe Is an Investment in Your Future

Homeownership Is an Investment in Your Future | MyKCM

There are many people thinking about buying a home in Lake Tahoe, but with everything affecting the economy, some are wondering if it’s a smart decision to buy now or if it makes more sense to wait it out. As Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA), explains:

“The desire for homeownership is strong. Many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook.”

If you’re in that position, remember that it’s important to consider not just what’s happening today but also what benefits you may gain in the long run.

There’s a lot of information out there about how homeownership helps build a homeowner’s net worth over time. But even today, many people think first about things like 401(k)s before they think of owning a home as a wealth-building tool. It’s especially important if you’re a young prospective homebuyer to understand how homeownership is another key way to invest in your future. An article from Bloomberg notes:

“Millennials have higher average 401(k) balances than Generation X did when they were the same age, but they’re not any better off financially. . . . A lot of that has to do with being less likely to own a home.”

To help you understand just how much owning a home can have a positive impact on your life over the years, take a look at what the data shows. The same Bloomberg article helps show the gap in wealth between renters and homeowners who are 65 years and older (see graph below). The difference is substantial, even when incomes are similar.

Homeownership Is an Investment in Your Future | MyKCM

So, if you want to create wealth to help set you up for success later on, it may be time to prioritize homeownership. That’s because, whether you decide to rent or buy a home, you’ll have a monthly housing expense either way. The question is: are you going to invest in yourself and your future, or will you help someone else (your landlord) increase their wealth?

The low inventory of houses for sale in South Lake Tahoe is making it somewhat challenging for buyers that want to get away from renting and that are actively looking to purchase a home.

There are currently only 76 single family home listings and 11 condominiums and townhouses that are listed as “active” on the South Lake Tahoe MLS. There are 32 pending sales which means that 26.9% of the total inventory is in escrow.  I am confident that as we get closer to spring, we will see more of a selection of homes for sale on the South Lake Tahoe MLS.                                                                                                                

 

Bottom Line

Before putting your homeownership plans on hold, let’s connect to go over your options. That way, you’ll have expert advice on how to make the best decision right now and the best investment in your future.

Buying Homes in South Lake Tahoe in Todays market!

Prioritizing Your Wants and Needs as a Homebuyer in Today’s Market in South Lake Tahoe

Prioritizing Your Wants and Needs as a Homebuyer in Today’s Market | MyKCM

There’s no denying mortgage rates are higher now than they were last year. And if you’re thinking about buying homes in South Lake Tahoe, this may be top of mind for you. That’s because those higher rates impact how much it costs to borrow money for your home loan. As you set out to make a purchase this winter, you’ll need to be strategic so you can find a home that meets your needs and budget.

Danielle Hale, Chief Economist at realtor.com, explains:

“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be given the diminished purchasing power.”

In other words, it’s important to be mindful of what’s a necessity and what’s a nice-to-have when searching for a home in Lake Tahoe. And the best way to understand this is to put together a list of desired features for your home search.

The first step? Get pre-approved for a mortgage. Pre-approval helps you better understand what you can borrow for your home loan, and that plays an important role in how you’ll craft your list. After all, you don’t want to fall in love with a Tahoe home that’s out of reach. Once you have a good grasp of your budget, you can begin to list (and prioritize) all the features of a home you would like.

Here’s a great way to think about them before you begin:

  • Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
  • Nice-To-Haves – These are features that you’d love to have but can live without. Nice-To-Haves aren’t deal breakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender (examples: a second home office, a garage, etc.).
  • Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).

Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your real estate advisor. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your needs.

Bottom Line

Putting together your list of necessary features for your next home in Lake Tahoe might seem like a small task, but it’s a crucial first step on your homebuying journey today. If you’re ready to find a home in Tahoe that fits your needs, let’s connect.

South Lake Tahoe Real Estate Update

After two years of massive home appreciation, the South Lake Tahoe real estate market has finally cooled down. We have shifted from a sellers market where multiple offers and over asking price sales with minimal contingencies were the norm, to more of a balanced market. 

The average days on the market has tripled from 29 days to 92 days and price reductions are becoming more common than they have in

years. 

Mortgage interest rates and economic concerns of a looming recession have caused many buyers to pause their search for a Tahoe property. With 30 year fixed interest rates now hovering around 7%, more than double what they were in January, low housing affordability is adversely affecting home sales. 

The inventory of homes for sale in South Lake Tahoe remains very low which is the biggest reason that we have not transitioned into a buyers market.

There are currently only 90 active single family homes and 11 condo/townhouses on the market in the city and county areas of South Lake Tahoe. There are 40 pending single family homes and condo/townhouses accounting for 28.4% of the inventory being in escrow.

 

 

In November of 2021 there were only 91 active listings however there were 82 pending sales, double the amount of pending sales currently listed on the MLS.

Here is a breakdown of the current 113 residential escrows by price range:

  • Under $200,000- 0  0%
  • $201,000 to $300,000- 0   0%
  • $301,000 to $400,000- 1  2.5%
  • $401,000 to $500,000- 7
  • $501,000 to $600,000- 7
  • $601,000 to $700,000- 7
  • $701,000 to $800,000- 3
  •  
  • $801,000 to $999,000- 7
  • Over $1 Million- 8

So far this year there have been 585 single family and condo/townhouse sales in South Lake Tahoe which is down from 684 sales during the same year to date in 2021. The median sales price is actually up to $707,750 from $689,500 last year but I suspect that number will change in a downward direction by the end of 2022.

Just Sold Listing in South Lake Tahoe
Recently Sold in The Tahoe Keys

The good news for sellers is that there are still many buyers actively looking for both primary residences as well as second homes in Tahoe that were unsuccessful in securing a property during the pandemic. It will just be important to price their properties correctly as most homebuyers are looking for value priced properties to compensate for the higher interest rates and market jitters. 

I do see the South Lake Tahoe Real Estate market improving in the next 12 months as interest rate hikes slow down and as inventory increases so this could be a great opportunity for buyers looking to find their dream home over the next year! For more information about the South Lake Tahoe Real Estate market please reach out to Brent Johnson at 530-416-2625 today!