BACK TO A “NORMAL MARKET”
Following the big bounce from Summer 2012 through Summer 2013 off the “great recession” bottom, our market stabilized in 2014 with values moving modestly higher. Buyer interest remains high due to the fact there is only one Lake Tahoe, and many vacation-home seekers (and investors) want to enjoy a slice of our “paradise.”
STATISTICS
Stats were solid for 2014 with a 7% increase in the median price of a single family dwelling (6% for condos), yet we saw an 8% decrease in total units sold. The decrease in units sold is likely the result of fewer properties for sale, and the natural “cooling off period” following the strong demand in 2012 and 2013. The other significant news in 2014 was the decline in foreclosures and short sales. These “distressed” property sales amounted to less than 5% of all sales activity bringing us more in line with historical averages.
SUPPLY AND DEMAND
Presently we have only 257 homes and condos available for sale in the South Lake Tahoe City and County areas in our MLS, of which 58 are pending, equating to 23% of our inventory in escrow. This percentage is less than last year, but is still a good number. (Data from 1/15/15). The historical swing in residential inventory over the past four decades runs from a low of about 65 active listings in 2005 to a high of nearly 1,300 in the early 80’s. The highest historical percentage of pending sales to listings is about 50% in 2005 and we have been as low as 7%.
FORECAST
Looking ahead into 2015 the experts are forecasting continued stability and somewhat fewer sales. Prices are forecast to move “sideways” plus or minus 5% of year-end 2014 values. Perhaps the “wild card” is interest rates. The Federal Reserve Board has been signaling that they intend to begin raising interest rates some time this year, but as I write this report mortgage rates continue to decline, and now stand in the mid to higher 3% range!
CHASE CONTINUES TO DOMINATE
Our Chase International company more than doubled its closest competitor once again in 2014 with a 22% market share in South Lake Tahoe.
GIVE ME A CALL!
If I may be of service to you, or any of your friends or relatives, please call or email me. And, referral clients are always appreciated if you know anyone looking to buy or sell at Tahoe. Thank you for your past business, and I look forward to serving you in the future.
-Angie Clark
aclark@chaseinternational.com
530.318.6622
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