Summer is now moving to fall but the Lake Tahoe real estate market hasn’t really slowed down. What did fall along with the leaves was the number of closed sales and the number of new listings of homes for sale.
Everyone keeps talking about the lack of inventory of homes for sale in South Lake Tahoe. The buyers know what they want, and while there appear to be plenty of homes for sale, they aren’t fitting what those buyers desire.
Median Price of Homes Sold in South Lake Tahoe Rises Again
The median price of homes sold in South Lake Tahoe rose again for 26th straight month. Homes sold in September. 2014 had an average value of $339,000 which is up 13.4% from one year ago. In August of 2012, as South Lake Tahoe’s real estate market recovered, the median price was just $231,000.
Closed Sales Declining
Home sales dropped in South Lake Tahoe as well as across the nation. Locally we had 14.3% fewer closed sales when compared to a year ago. In the U.S. the drop wasn’t as drastic because the real estate market in our mountain resort community is different than those in traditional markets. As has been the norm for the past couple of months, three of the four prices ranges of homes in South Lake Tahoe had an increase of sales. Homes priced under $300,000 experienced a drop of 35.6% in closed sales due to the drop in inventory in this category. Homes priced to $435,000, a 3.8% increase in closed sales, then priced up to $650,00 an increase of 12.9 %. The highest priced range of homes, those priced above $650,000, had an increase in sales of 2.7%.
Since there are very few distressed homes for sale, these categories saw the biggest drop in closed sales. Foreclosures saw a 59.7% drop in closed sales (from 67 last year to 27 this year) and short sales had a 53.7% drop in closed sales (67 last year and 31 this year).
Inventory of Lake Tahoe Homes for Sale Rises
Over the last 12 months there were 380 homes for sale in South Lake Tahoe. This is actually a rise of 15.1% from the previous year’s count of 330. The lower priced home category had a 2.8% increase in inventory and the other three categories experienced much higher increases. We still have a much smaller inventory than at the height of the real estate market in South Lake Tahoe in 2008. In March of that year there were 676 homes for sale, the largest number in the last 7 years. During that same time frame, the lowest number of homes for sale was in July of 2013 with 328. Since July we’ve had a small, but steady, increase of homes on the market.
However, I watch the new listings and closed sales on a daily basis. What I’m seeing is that sales are starting to outpace the new listings, so I have a feeling that the inventory is going to drop, but time will tell.
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