The story, this beautiful fall season…feels more like winter with this new dusting of snow. It is really crisp out there, especially in the am, which is a great time to snuggle by the fire and keep warm… and while you’re at it, check out the beautiful fall colors, which are quickly turning from fall pumpkins to Thanksgiving turkeys, to one of our most festive and busiest time of the year in our amazing Lake Tahoe basin!
If there’s a “not so much” buzz in the marketplace (real-estate that is), there’s definitely a “way much” buzz in the Tahoe land-people scape. There’s a lot going on this fall, so get out and enjoy the great and amazing Tahoe natural environment and which has been shaped by our intriguing history.
Plus there’s the truly perceptible excitement building around the winter recreation scenes. Stay tuned, there’s more to report, or better yet come up and simply see and enjoy for yourself.
$850,000.00 median home price,
(down 4% week over week)
$559. price per sq ft.
(down 4% week over week)
$732,000 median home price
(up 12% week over week)
$443 price per sq ft.
(down 4 % up week over week)
$754,0000 median home price
(flat week over week)
$478.00 price per sq ft.
(flat % week over week)
Year over year we are reporting a 3% 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 flat to negative 2% annual appreciation for the calendar year of 2022 based on the sales data leading to this week’s stats.
The absorption rate is now hovering at 2.5 month(s) of inventory. As a point of reference, 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 our Indian 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 less than 2 months of active listing inventory on the market. 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 continues to use the only tool in their toolbox to get a handle and rein in inflation and has raised the interest rates another 3/4 of a point sending another round of shock waves through the financial markets. Many speculate that we may continue to see this through the foreseeable end of year.
While interest rates in the 7% range, which has cut into the affordability of many, we have seen reasonable alternative financing surfacing with options of variable rates and quite a few “buy down” rate programs which are offering glimmers of hope to those impacted by the range hikes. Add the stabilizing inventory and seasonally tempered home prices, the big picture for a more “normal” real estate market bodes well as we lean into this time next year as the likely time recovery in 2023.
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!!