South Tahoe’s Real Estate Market Showing Signs of Improvement

~submitted by Theresa Souers
2012 Public Relations Chair
South Tahoe Association of REALTORS®

You may have been hearing a new message in the media lately – that “now is the time to buy real estate” and that the market is improving.  But all real estate is local.  Wonder how South Lake Tahoe is doing?

One of the most positive signs that South Shore’s real estate market is on the mend is that our inventory absorption rate – the amount of time it takes for houses available for sale to sell – has decreased significantly.  Compared to a year ago, the month’s supply of inventory is down a remarkable 26.4%.  Overall, the state’s month’s supply of inventory is down 5.6%.

Our inventory – the number of homes available for sale – is down 20.3% compared to last year.  The number of new sales coming on the market has also decreased by 7.4%.  With less supply, sellers have a greater chance that their home will sell more quickly to interested buyers.

Our median sales price continues to decline, however, year over year with a drop of 18.9%.  This is good news for buyers, though, with the means to get a loan and purchase.  South Shore has not been this affordable since 2001 with a median sales price of $236,500 for single family homes.  And interest rates remained historically low at just 3.55% for a 30-year fixed mortgage in July.

Historically, South Lake Tahoe’s real estate market has followed the Bay Area’s.  With robust activity in San Francisco, and many vacation home buyers coming from that area, signs are positive that South Lake Tahoe’s real estate market will continue to improve.

*Source: Statistical information from the South Tahoe Association of REALTORS® Multiple Listing Service for South Lake Tahoe properties sold within the 96150 zip code for the period of July 2011 through July 2012, as well as the California Association of REALTORS®. 


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