South Lake Tahoe, California — The number of homes sold in Lake Tahoe has declined significantly, but selling prices have not declined as well.
According to Ken Bednar of Lake Tahoe Communities, the market is down compared to the first quarter of last year.
The number of units available in the basin has decreased by 25% compared to last year, Incline Village has decreased by 37% and South Shore has decreased by 21%.
“Currently, there are 33 homes on the east coast and about 90 homes on the south coast,” says Bednar. “Usually there are about 100 more.”
Bednar added that the night from the market is visible to approach the buyer / seller market as well as the seller market.
“The red-hot and horror purchases seen at the beginning of the pandemic have subsided significantly, but Tahoe’s demand has subsided,” said Bednar.
Redfin’s Lake Tahoe representative, Joni Johnson, said April was slower than usual, but in May there was a new list.
“We only got one or two new lists a day in April, but in the last few weeks we’ve got about 30 new lists a day,” Johnson said.
Since Johnson represents Truckee and Tahoe, she added that Truckee, Skoh, and North Star are seeing more new lists than the lake-level community.
Although the number of units decreased, the number of units sold was almost flat.
“Prices have begun to level off, but they won’t fall soon,” Johnson said.
Despite the federal government raising interest rates, trading volume in the first quarter fell by only 2%.
Bednar said in Nevada that interest rates haven’t affected them, as 60% of buyers are offering cash. He also sees greater demand in Nevada because there is no state income tax on primary residents.
In addition, he still sees people aged 30-40 looking for a home.
“Thanks to working from home, young buyers have settled in Tahoe,” said Bednar.
Johnson also sees less of the impact of rising interest rates, but still sees the impact of volatile stock markets.
“I’ve heard from many people that the down payment is still in stock,” Johnson said.
As the stock market fluctuates dramatically every day, buyers are nervous about withdrawing their investment to use as a down payment.
Still, Johnson says summer is the best season for Tahoe real estate, so Redfin expects this year to be pretty average.