1 minute read
Tahoe Talk
from LUXE V3
Luxury Real Estate Market Outlook
After a record year in Lake Tahoe Real Estate, most agents anticipated another strong year as we kicked off 2022. The first quarter of 2021 held very strong, bucking the traditional trend of a slow build into summer. Active listings remain at all time lows which has reduced sales volume overall, but average and median home prices continue to increase year over year.
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With the recent interest rate changes made by the Federal Reserve to cool down inflation, expectations are shifting in real estate markets. There are already some signs of slowing in national markets with rising active inventory and days on market.
ANTICIPATED REGIONAL IMPACT
Thus far, national trends have not impacted Lake Tahoe directly yet. However many homes in the region are vacation homes and if discretionary spending levels fall, some homeowners may become sellers. Despite all of the national trends, consumers continue to show strong demand for lifestyle investment, which has always been one of the major attractions of Lake Tahoe. With that in mind, our local market may hold more firm than many over the next several months.
The Ultra Luxury Market is generally less impacted by higher interest rates and inflation. The first quarter of 2021 showed a very strong start to the year with twelve homes sold over $10 million, the highest quarterly output ever in Lake Tahoe. There are currently 15 active listings over $10 million - 14 are lakefront estates. Nothing sells like an awe-inspiring lakeview!
Moving forward, we expect to see the usual uptick in listings as we move into summer. Homeowners considering putting their property on the market would be wise to move quickly to capture serious buyers looking to secure their piece of alpine paradise ahead of the 4th of July holiday weekend. May and June usually bring a wave of buyer interest as people look to close on a property before the holiday weekend. While the summer months are prime time for foot traffic and casual interest, the number of homes in escrow won’t peak again until September and October when tourist traffic slows down.
If you, or someone you know, would like to learn more about the current conditions of Lake Tahoe’s Real Estate Market, please reach out! The knowledgeable agents on our team are ready to help.
