I continue to stand by my prediction, that, with a lot of investment activity in town and an overflowing schedule of summer entertainment, the summer real estate market in Lake Tahoe will be a strong one.
South Lake Tahoe Home Values Continue to Rise
Just like the temperatures, home values are rising! In May, 2015, the median sales price was $350,000, up 6% from last year. There has been a leveling off of this figure since the end of 2013, but it is rising none the less. The biggest jump in South Lake Tahoe home values was between October of 2012 and October 2013 when values jumped dramatically. During that 12 month span, the median sales price went from $237,250 to $318,000.
When breaking down the median sales price to single family homes and condos, the sales price of homes sold increased 7.4% to $364,000 and the price of condos actually dropped 1% to $275,000.
Closed Sales Drop
There was a drop in May sales but there is an explanation to this. As I’ve said over the past few months, we had a smaller inventory of homes for sale which results in lower sales. Team Paradise had three closed sales in just one day, so I am not seeing things slow down at Paradise Real Estate office!
The figures we see in May are for closed sales, so the results are from homes that went into escrow within the last 45 days. In the past two months, there has been an increase in the number of homes for sale in South Lake Tahoe. As a result, this fall, we should start to see increases in closed sales. In fact, the homes in escrow right now are up 2% from a year ago and up 20 homes from just a month ago. There has been a new development this month regarding additional restrictions for Vacation Rental homes which may negatively affect values in “The City”. Look for a detailed future article coming out soon breaking down the details after the upcoming June 16th city council meeting.
In May there were 292 homes for sale in South Lake Tahoe. To put this number into perspective, in January of 2010 there were 492 and at its lowest in June of 2013, 233 homes were on the market. There is a very steady, though small, increase in the number of homes for sale. This is good news for home buyers as there are now more choices, depending on the price range.
South Lake Tahoe Real Estate
If you want to take advantage of the still low interest rates and purchase a home in Lake Tahoe then I suggest you follow these easy steps to get you on track:
- Sign up for email notification so you’ll know the minute a home is listed.
- Call me directly at 530-541-2465 or stop by my office and we’ll sit down and explore all options.
- Get my newsletter every other month which gives you an insight into Lake Tahoe real estate.
- Search all homes for sale around the lake. My website makes it easy to search for homes that match your criteria.
- Get valuable and current information like what is listed above. Sign up to receive Lake Tahoe real estate articles sent to your inbox.