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September 2014 Lake Tahoe Real Estate Market Report

By Dave Westall

Real Estate Agent with Oliver Luxury Real Estate DRE# 01796995

October 02, 2014 05:37 AM

September 2014 Lake Tahoe Real Estate Market Report

We are now in the 4^th quarter of 2014! With nine months of data behind us, we have a much better sense of what has been happening in the first three quarters of 2014. The Lake Tahoe real estate markets have been dominated by upward movement in the luxury segment as the number of million dollar plus home sales is up 22% over 2013. This year sales volume is down 18% over 2013 but with each new sale we are seeing pricing push upwards (median price is up 15%) as buyers are willing to pay a premium for desirable properties. Part of the reason for the slowdown in sales volume is due to limited inventory and buyers becoming more discerning when shopping for Tahoe and Truckee homes. With fewer “deals” in the market we are seeing marketing times increase for homes that are priced above the market. We continue to see strong buyer demand, low inventory levels, lower levels of distressed home sales (REO and Short Sales) which has led to solid increases in home values. These are all signs of a healthy increasing market and we anticipate that the remainder of the year will be strong for Tahoe real estate sales.

Year over Year Market Comparison

January – September 2014 Statistics	January – September 2013 Statistics
647 Single Family Home Sales down 18% Average Price: $920K up 23% Median Price: $585K up 15% 45 REO & Short Sales down 56% 6 Sales Below $200K down 76% 126 Sales over $1M up 22% High Sale Price: $14M up 32% Low Sale Price: $76K up 5%	788 Single Family Homes Average Price: $712K Median Price: $500K 103 REO & Short Sales 25 Sales Below $200K 98 Sales over $1M High Sale Price: $9.49M Low Sale Price: $72K

*Lake Tahoe and Truckee Single Family Homes Including Lakefronts, MLS Areas 1-9

Lake Tahoe Market Analysis Sales Chart

This chart shows that in the first 9 months of 2014 the Average home price in Truckee and N. Lake Tahoe is up 23% and the Median price is up 15% over the same time period in 2013.

Anticipated 4th Quarter Market Conditions

High buyer demand for quality properties
Limited inventory in given price points
Pricing Increases of 12-18% by the end of year
Fewer distressed sales (REO and Short Sales)
The higher end of the market will continue to set records
Mortgage interest rates have remained low through 2014 but it appears that rising rates are on the horizon and rates could edge closer to 5% in the beginning of 2015. This increase will take away from buyer purchasing power as a 1% increase in loan rates equates to a reduction in purchasing power of approximately 10%

So far in 2014 Oliver Luxury Real Estate has sold $151M in Tahoe/Truckee real estate and we are the #1 Luxury Brokerage in North Lake Tahoe! It would be my pleasure to discuss your real estate goals, so please feel free to call or email me anytime.

*This blog was originally posted at www.WestallRealEstate.com