The story this late summer season is the market is settling into a steady consistent pace! This likely due to the lower interest rates, more choices in housing options and inventory and definitely with more affordable pricing.
All the while inventory has peaked and now officially has “leveled off”.
Pending sales have stabilized, and homes sold have bounced up. In a nutshell, prices of active, pending and sold homes week over week, have moderated across the board, with an increase in homes sold median price, at about 8%. We have 2.8 months of inventory on the market, which too has settled in and 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!
$826,00.00 median home price,
(Flat week over week )
$577. price per sq ft.
(Flat week over week )
$724,000 median home price
(Up 8% week over week)
$493.00 price per sq ft.
(Down 12% up week over week)
$616,0000 median home price
(Down 1 % week over week)
$499.00 price per sq ft.
(Down 2 % week over week)
Year over year we are reporting a 7% 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% 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 downward and is now hovering at 2.5. 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 less than 3 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 has raised the interest rates, with the likelihood of another smaller round of rate hikes, and that while we have been at relatively moderate interest rates, we have seen a rise in interest rates and may continue to see this through the foreseeable end of year. This (interest rates) along with a slowing pace 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!!