With every new presidential election, comes some changes. This election cycle was a controversial one, and likely most of you can agree it created some division among family and friends. Whether you are happy with the results or extremely dissatisfied, the reality is that there are going to be some changes to the South Lake Tahoe real estate market. While some media personalities have called Trump the least predictable president to ever enter the White House, he is a real estate tycoon so there are some predictions that have been released that we are willing to say won’t change. Like? Take a look below!
The housing inventory will stay low. The month supply for the nation is at 4.3 as of the end of October. The month supply for South Lake Tahoe is 3.9. In order for it to be considered a buyers market, the month supply would need to be 5. This is not changing anytime soon, regardless of who takes office. The reality is that the demand is high and inventory is low and it is going to take a LOT of new construction to catch up. So if listing your South Lake Tahoe real estate is something you have been thinking about, you can be sure that now is a good time. Buyers are serious and you have less competition.
Mortgage rates will continue to rise. In fact, they have jumped from 3.5% to 3.94% post election. Now before you have an anxiety attack and cry at the thought of being a life longer renter, this rate is still historically low. In fact, as of the 2000’s, they were 6.7%. In the 80’s they were 12.6%. Rates would have to jump to 9.1% to make renting more affordable than buying. If you have been considering making a purchase and you have the means, don’t post pone any longer. The slightest increase can impact your South Lake Tahoe real estate budget. As previously stated, Trump is a real estate guy and is fully aware that the economy needs low rates.
If you have been thinking of buying or selling real estate in South Lake Tahoe, give us a call. We are constantly keeping our finger on the pulse of both the local market, as well as what is going on nationally. 2017 real estate predictions are starting to get released, but we are keeping a close eye on any changes due to the election and we will be sure to keep you posted.