In today's real estate market, there are incredible opportunities for buyers. In some areas of South Lake Tahoe we are seeing values that we haven't seen in years. Prices are more affordable and reminiscent of 2004. For example, I just sold a 2000SF home on an acre of land for only $400,000. At the peak of the market boom, buyers wouldn't have never thought of offering anything less than $570,000. It was originally priced at $565,500 and over a period of 4 months the price was gradually reduced to $429,900. At that price, it finally awakened the buyers and multiple offers were submitted. The buyers' cautious and conservative bidding yielded a big gain for one of them.
Where are the buyers? The conditions are ripe for buying with low interest rates, a large selection, and lower prices. Yet the market still seems sluggish. It seems that buyers have lost their appetite. Even though the table is served with piles of delicious food, the seats are nearly empty. For the few that are seated at the table, the feast begins.
Maybe we need to put it in perspective. After all, the boom years had brought an abnormal volume of activity which surpassed unprecedented levels. It lasted so long that it had seemed normal. There are a variety of conditions that may explain the slow down. Failing subprime lenders has created tighter lending practices which has reduced the number of qualified buyers. Foreclosures continue to increase and add to the oversupply. Consumer confidence is down due to an ailing housing market. Both buyers and lenders are concerned that a continued decline in value could result in the evaporation of most or all of a down payment. Fear is the markets worse enemy and it is preventing a healthy balance.
The truth needs to be told. The market is cyclical and it will rise again. If you look at it over time the average price continues to rise. The buyers looking for short term gains are being short sighted. Real estate has always been a long term investment and always will be. With an abundance of homes to choose from, now is the time to find the right home. Of course there are those looking for the perfect trifecta which includes the perfect home, for the perfect price with the perfect interest rate. This usually results in the perfect loser. It isn't easy..... being perfect!