July 2014 Lake Tahoe Real Estate Market Report
In 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 17% over 2013. We continue to see fewer home sales than last year, but buyers are paying a premium for these properties (median is up 17%) and it appears that buyers have become more discerning when shopping for Tahoe and Truckee homes, which is part of the reason why we are seeing fewer home sales than last year. We continue to see high buyer demand, low inventory levels, lower levels of distressed home sales (REO and Short Sales) which have 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.
Year over Year Market Comparison
|January – July 2014 Statistics
||January – July 2013 Statistics
*Lake Tahoe and Truckee Single Family Homes Including Lakefronts, MLS Areas 1-9
Over the last few months inventory levels have increased which has been welcomed by patient buyers. As new homes come on the market pricing has been ticking up on these new listings. Buyers appear willing to pay more, but they are also expecting to get something special for their money, whether it’s a remodeled home, a new property, a special and unique location, a remodel opportunity in a good neighborhood, etc. Inversely we are seeing homes with “issues” (floor plan, setting, etc.) taking longer to sell and selling at larger discounts.
Lake Tahoe Market Analysis Sales Chart
Anticipated Second Half Market Conditions for 2014
- High buyer demand
- Limited inventory
- Pricing Increases of 12-18% 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 7 month of 2014 Oliver Luxury Real Estate has sold over $100M 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.