The story this month is “inventory has peaked and now “has leveled off ” at 187 active sfd home listings on the market.. Pending sales and homes sold have both moderated. In a nut shell; prices of active, pending and sold homes week over week have stabilized. However, we have 4 months of inventory, as this is increasing, it tells the story of the now equal buyer’s/seller’s market. And in fact it demonstrates that we have moved to a much more level playing field. I know this is a welcomed change to the market for many!
$830, 000 median home price,
(flat week over week )
$568. price per sq ft.
( 3 % week over week )
$620,000 median home price
(down 16% week over week)
$498.00 price per sq ft.
(down 1.6% up week over week)
$650,000 median home price
(down 8% week over week)
$546.00 price per sq ft.
(up 1.5% week over week)
Year over year we are reporting a 17.1% increase in median home prices in the Lake Tahoe, So. Shore market. However, month over month we are tracking a changing scenario with predictive values of 5-7% annual appreciation for the calendar year of 2022 based on the sales data leading to this week’s stats and eblast.
This is mirrored in the median home prices which have been tracking up at meteor rates until this past month. However, our median price for homes sold, having recently broken the $700,000 price point for the first time ever is still tracking slightly upwards at less than 1% increase mo. Over mo., however much more slowly than the past two years. More to follow as we track the strong but ever-changing market.
The absorption rate has continued to move up and is now hovering at 4 month(s) of inventory. 3 months of inventory has become a bit of a standard for these past many months. This however is now lining up with that of our market history and which our association has been tracking for over two decades. As we roll well into the dog days summer, the indicators are showing buyer demand appears to be consistent with our traditional seasonal trends.
Interestingly, the perfect storm of conditions that drove the pandemic’s “seller’s market” here in the Lake Tahoe basin being driven by the underlying factor and demand for access to a healthy outdoor recreational lifestyle. The ability to work remotely, new to many, with an easy short distance commute (when needed) to “the office”, coupled with Tahoe So Shore’s attractive inventory and pricing made the home buying decision an easy and quick solution for many.
And while this still exits, the main drive that coupled the lifestyle drive has receded, that being the flight to safety. With most now having the safety net of vaccines and boosters to keep us safe and healthy, many are venturing back to the workplace or “the office” and resuming a more normalized lifestyle, kids back to school, etc.
So we are finding our real-estate market also returning back to a more normalized market where both Buyers and Sellers and are back to negotiating, as evidenced by a nearly four months of active listing inventory on the market, we are seeing a balanced market between buyers and sellers finally alive and well again. For many a relief, for others the sense they may have missed the market. The latter is not so as prices have not declined but simply stopped trending higher!
The Federal reserve has raised the interest rates .75% yet again, another large rate hike, and that while we have been at relatively moderate interest rates, we will see a rise in interest rates through the foreseeable end of year. This (interest rates) along with a steady increase in home inventory, will continue to fuel home prices. Add the stabilizing and seasonally tempered home prices, the big picture for an active real estate market bodes well as we lean into the next quarter.
While in the rear-view mirror, the traumatic events of the past high Sierra fires, pandemic driven tourism surges, snow-apocalypse that brought a stronger than ever committed community. This propensity to withstand and grow stronger in the face of adverse conditions, will aid the Tahoe community and others well beyond, as we deal with the ever-changing landscape of most recent global challenges in Ukraine. We stand steady and strong with our hearts and minds in our united support for the people and the country of Ukraine. This guides us to a steady return to a resilient “Tahoe Strong” community, and what can only be viewed as a robust Spring real-estate market.
Welcome to our Lake Tahoe market and community where we welcome and encourage you to come and let’s look at what new and inviting opportunities are available. If you’re new to the market, we’ll bring you up to speed and get you on the right path to your Tahoe home ownership!!