September 2014 Lake Tahoe Real Estate Market Report
We are now in the 4th 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
*Lake Tahoe and Truckee Single Family Homes Including Lakefronts, MLS Areas 1-9
Lake Tahoe Market Analysis Sales Chart
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