Spring is officially here and buyers and sellers all over the United States are preparing to make like our clocks just did and spring ahead on their South Lake Tahoe real estate goals. However, this years market is a little different compared to years past for a few different reasons. One of those reasons being that South Lake Tahoe real estate is not like typical markets in that we actually have two busy seasons and not just one like most residential areas. Because we are a second home resort market, our winter seasons can be just as busy as our summer seasons. Lake Tahoe attracts three types of people: The snow enthusiasts, the beach bums and the people that like both. When we have a record breaking winter like this year, we are just as busy with people looking to buy as we are in the summer time. This is important to know, because this has an impact on inventory alone, without all the other factors we are currently dealing with in today’s market. We’ll get to that shortly. You see, if our winter real estate market is slow due to dry conditions, we usually have enough inventory left over to satisfy the early spring shoppers. Because we have had so much snow fall, there has been a lot of interest in the market and not enough inventory to keep up with demand.
Now, let’s discuss some of the other factors the current South Lake Tahoe real estate market is dealing with. Real estate in South Lake Tahoe is currently considered a sellers market and has been for about the last year. Inventory is low, demand is high and so are the prices on homes for sale in South Lake Tahoe. In addition to this, mortgage interest rates are increasing and are expected to increase at least a few more times over the next four quarters. As a buyer, this impacts your purchasing power. The more interest rates go up, the more your budget is impacted which means you could be priced out of the homes for sale in South Lake Tahoe that you have been eyeing. The good news is that you can still get in on a historically low interest rate this year. As a seller, as interest rates go up, the demand will not be as high as right now, which means supply will catch up with demand and the prices will level out. Now, prices are not expected to decrease, BUT if you want to maximize the amount you get for your home, now is a really good time to seriously consider selling.
As long time local Realtors in South Lake Tahoe, it is our opinion that now is a good time to get serious about buying and selling. If you are selling, you are dealing with serious buyers who are qualified to purchase your home. Nobody braves snow, wind and ice if they aren’t committed to buying real estate in South Lake Tahoe. If you are buying, you will have a lot less competition now compared to if you wait. Real estate in South Lake Tahoe is already ramping up and we don’t expect a slow down anytime soon. If you are looking for Realtors in South Lake Tahoe that can help you navigate this market, give us a call! We have a team that would be absolutely happy to help.