Lake Tahoe Real Estate Market Report, Jan - May 2014
With 5 months of real estate sales data under our belts, one thing is for sure, the 2014 Lake Tahoe real estate markets are hot in 2014! This year the theme that keeps repeating itself with the passing of each month is high buyer demand, low inventory levels, fewer distressed sales (REO's and Short Sales) and an increase in luxury home sales. When these factors come together it is no wonder that we are seeing double digit appreciation over 2013.
Now that May has arrived it's officially the start of the summer selling season in Lake Tahoe and over the last few weeks we have seen inventory levels creep higher and we anticipate that between now and the end of July we will continue to see inventory levels increase. Increased inventory levels will be welcomed as buyer groups are having a hard time finding homes that fit their needs. Although we will continue to see inventory levels increase, buyer demand is quickly gobbling up these properties and we have seen median marketing times drop to 44 days. As new homes continue to hit the market we are noticing that pricing is ticking up and the market seems to be responding well to these price increases, especially when a home is located in a desirable area, has upgrades and is priced within reason.
Year over Year Market Comparison
|Jan - May 2014 Statistics
||Jan – Apr 2013 Statistics
*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 five months of 2014 the Average home price in Truckee and N. Lake Tahoe is up 27% and the Median price is up 20% over the same time period in 2013.
Anticipated Market Conditions in 2014
- High buyer demand
- Limited inventory
- Pricing Increases of 10-15% by the end of year
- Fewer distressed sales (REO and Short Sales)
- The higher end of the market will set records
- Mortgage interest rates will continue to increase through the year and should be close to 5% by 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%
In the first 5 month of 2014 Oliver Luxury Real Estate has sold over $62M in Tahoe/Truckee real estate and we are the #1 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.