Real Estate: What to know for selling season
The real estate market in South Lake Tahoe, California was a hot topic in April 2023 and continues to be so as we enter the busy selling season. We saw a surge in activity as our community began to thaw out, buyers and sellers began to gain confidence again as they stepped back into the real estate market. This time of year, is truly my favorite, not only personally but professionally. Things seem more vibrant, but not too busy, and opportunities are popping up everywhere you look.
I must not be the only one who feels this way too, because after tracking our local MLS, I am seeing more and more homes come on the market. People are feeling motivated again, and gosh that feels good! Recently, housing statistics from April 2023 were released by the South Tahoe Association of Realtors. It stated the median price of single-family homes around the southern part of the lake fell to $700,000, which is a 3.4% decrease from the same period last year.
Although there has been a slight dip in median home prices for our MLS, it has still proven to be a seller’s market. Why? Because of demand. There is a high demand for properties in the area, and with low inventory, we are still seeing multiple offers on certain properties. However, with that being said, depending on your goal, savvy buyers can still find good deals on properties that are priced right and in desirable locations.
Recently, STAOR hosted a workshop for local Realtors with the California Association of Realtors Chief Economist, Jordan Levine. Levine had some interesting insights on trends we have seen locally as well as state-wide. He noted across the US homeowner equity is still at an all-time high, which brings opportunities for sellers. Specifically in California, loan delinquencies are up slightly, but way below historic norms.
While hearing this, it reconfirmed there is wiggle room for buyers to negotiate, which we hadn’t seen for a while, and is honestly refreshing. After reviewing the recent data regarding jobs, housing, interest rates, unemployment and inflation, he said, “Over the long run, prices in California only go 1 way” and that is up. In South Lake Tahoe, we aren’t seeing the mass amount of price reductions below $1 million. For our area, where there has been more movement in price adjustments is for the higher priced properties. Which, for many, may not be a surprise. Affordability for every-day homes is a hot topic in California and will continue to be so.
With any real estate market, there are challenges that buyers and sellers need to be aware of. Whether it is local regulations, weather factors, or lack of inventory, there will always be something. However, this year specifically, we have seen a number of homes come on the market from sellers looking to relocate. This past winter for many was the straw that broke the camel’s back. There has been an increase in homes come on the market that could be great investments for flips or renovations due to the damage from the extreme weather. If you are willing to put in a little elbow grease, opportunity is there!
Despite these challenges we saw from this past winter, and the recent dip in median home prices, the outlook for the South Lake Tahoe real estate market is generally positive. The area continues to attract new residents and visitors who appreciate its unique blend of natural beauty, recreational opportunities, and relaxed lifestyle. If you are a buyer or seller, just remember to work with a trusted real estate professional who knows the nuances of Tahoe. Our team happy to help anyone who would like more clarity on the local real estate market, or other real estate related questions so feel free to call us at 530-208-3066.
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