The overall market in South Lake Tahoe is relatively stable. It was surprising to find that our inventories did not exceed last year's peak. This could be attributed to healthy activity within both the high and low end of the market. This was clearly evident this past year when a three of my clients tried making offers on well priced properties. In both cases we found ourselves bidding against multiple offers. The other buyers were not bashful to overbid. Consequently, my clients were not as exuberant and we did succumb to the competition.
The price range between $500,000 and a million is a much different market. It is very sluggish with few sales and a huge selection. The buyers are scarce. This might have something to do with the interest rates. This price band usually means that a buyer must apply for a jumbo loan. The 80-10-10's are no longer available and no document loans are gone as well. Buyers are now faced with more conventional type financing and this has reduced the buyers appetite.
All of this has left more sellers in anxiety. New construction can be had a bargain prices. Builders have to make a choice between no profit or a loss. There are approximately 40 new construction homes on the market and winter will only exasperate the problem. While most buyers are choosing the affordable, a few are discovering the incredible deals. If you are looking for the best buys in Tahoe, pay more and realize greater values!