February 2020 Real Estate Review

The South Lake Tahoe Real Estate market is again seeing a slight decrease in the total number of listings from February 2019. This includes the Active Listings and those that are currently in Escrow. Out of the Active Listings, none are Short Sale and there are 2 REO properties. Out of the properties in Escrow, none are Short Sales and there are 2 REO. 

The median sales price for a Single-Family Home in South Lake Tahoe as of January 2020 is $485,000.00 which is up 2.1% from January of 2019. There are currently 56 properties in Escrow and represent 42.9% of the total inventory. Here is a breakdown by price range of the 56 Escrows:

• Under $200,000- 0  0%
• $201,000 to $300,000- 3  5.4%
• $301,000 to $400,000- 14  30.4%
• $401,000 to $500,000- 12  
• $501,000 to $600,000- 7
• $601,000 to $700,000- 3
• $701,000 to $800,000- 8
• $801,000 to $999,000- 4
• Over $1 Million- 5 (4 are Chase of which 1 is Zalanta)

Mortgage Rates are at their lowest they have been in 3 years. CNN reported that, “Mortgage rates across the U.S. have fallen to a three-year low, a boon for house-hunters and homeowners looking to refinance. 

The average 30-year mortgage is charging 3.45%, while 15-year loans are at 2.97%, according to Freddie Mac. That’s down from 4.41% and 3.84% a year ago. Lower rates means homeowners pay less for their house over the life of the loan. So anyone with decent credit shopping for a home is likely getting the cheapest interest rates in years, experts said.”

What factors are pushing down mortgage costs? “The Federal Reserve has kept rates low after cutting them three times last year amid signs of economic weakness, while inflation remains tame.

“And once [banks] start to expect that, they’re willing to lend money over the long run at lower interest rates,” said Bob DeYoung, an economist and business professor at the University of Kansas. 

Another reason mortgage rates have receded: European and other overseas investors seeking shelter from Brexit, the coronavirus and other global risks have scooped up U.S. Treasuries, pushing down yields. Banks typically keep mortgage rates slightly above Treasury rates, so home loan costs have declined in turn.”

Check out the article here- Mortgage Rates Hit Three Year Low

If you’ve been holding out, now is a great time to buy! We usually start seeing an increase of listings by early Spring and now would be the time to check in with your Mortgage Broker. 

To check out an up to date Market Report for South Lake Tahoe, you can access here- Market Report for South Lake Tahoe

For more information, you can email me directly at bjohnson@chaseinternational.com or call/text 530-416-2625.