Real Estate: Analyzing market trends in 2023
Lake Tahoe has long been a popular destination for people all over the world. With its stunning mountain views, multiple options for skiing or snowboarding, hundreds of miles of hiking trails, and abundant opportunities for recreation, it’s no wonder why so many people are drawn to the area. Whether you’re looking to buy or sell property in Lake Tahoe, it’s important to understand the local real estate trends and statistics.
The information we are sharing is from the South Lake Tahoe Association of Realtors local MLS (Multiple Listing Service). Unlike real estate websites like Zillow, or Realtor.com the MLS provides Realtor’s true, accurate sales data that we can pass on to our clients. Sometimes third party sites like those listed above can have inaccurate data feeds, resulting in misinformation.
December 2022 was a steady month for real estate. In the South Tahoe MLS, the median home price was $715K. This number is up 1.3% from last year and despite the increase in interest rates, home values are expected to continue to stabilize, but remain strong, as demand for properties remains high.
Are we seeing price reductions? Absolutely. However, in the past two weeks, we have not seen as many price reductions as we did in December 2022. In the last 14 days, there were five price reductions in the South Tahoe MLS on single-family residential properties. We are seeing, with the shift in the market, buyers and sellers are negotiating again on price and terms. You may have heard this before, but we have returned to a “normal” market.
During the fall and winter months, inventory is statistically lower due to the holidays and snowfall. Despite these factors, there is still a reasonable number of homes on the market. Last month there were 51 single-family homes available in the South Tahoe MLS. Interestingly enough, this number is about the same compared to December 2021 showing it had 52 active listings, in what we considered a “hot” market.
December’s sales statistics showed us, the median time a home spent on the market before being sold is 77 days. Why do I keep saying median rather than average? The median allows us to remove the outliers for price and days on market. So, to get a true pulse of the real estate in our region, I like to look at the median.
In December, there were 35 homes that sold in South Lake Tahoe, specifically. Six of which sold at list price, two sold above and the remaining 27 homes sold below list price. This indicates that sellers are making more concessions during a real estate transaction to meet buyer needs. However, if a home is priced correctly, in good condition, and in a desirable area, buyers will still be willing to pay appropriately for these conveniences.
If you are a seller, hiring a trusted Realtor to help you determine your list price based on the most recent comparable properties is crucial. My partner and I always go into listing appointments wanting to know. What is your goal? Of course, you want to sell the house. But how quickly and under what other circumstances? The answer to this question really helps determine an appropriate pricing approach for your home. Long are the days of being able to throw a high number against the wall and get 10-15-20 offers. Pricing is a strategy and should be discussed with a professional.
As you can see, South Lake Tahoe offers potential buyers and sellers plenty of opportunities. Thanks to its stunning scenery and close proximity to ski resorts and outdoor activities, it will always be a desirable area. Though prices remain higher than many other parts of California and Nevada, there are still good deals available if you know where to look.
Kaylin Culver is a Realtor for Re/Max Gold based in South Lake Tahoe. She is part of the Lake Tahoe Real Estate Team, led by Broker-Owner Jesse Schue.
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