Pending home sales through the roof

There was a story in this week's USA Today that caught my interest and made me research facts here in Lake Tahoe. The article said that the number of signed contracts to buy homes in the U.S. rose in March to the highest level in 3 years.

Lake Tahoe closed sales

115 homes are currently in escrow on the California side of Lake Tahoe and 37 homes are in this status on the Nevada side. The Lake Tahoe California figures are 10% higher than last year at this time and the Lake Tahoe Nevada figures are up 60%!

Combine the 115 pending home sales on the California side of the lake with the 8 multi-family units, 3 commercial properties and 15 lots and you'll see why I keep saying that the Lake Tahoe real estate market is hot, hot, hot!

Home sales have been climbing in Lake Tahoe since a low in May of 2009. Please keep in mind that the medium price has not started to climb until about 10 months ago. We've leveled off over the last 4 months because of one major factor: lack of inventory(homes for sale).

Closed sales across the nation

According to the USA Today article, signed contracts are higher in the US by 7% over the same month last year. They say steady jobs and near-record low mortgage rates have helped to drive up homes sales. Rising demand and reducing supply of homes for sale are fueling home construction elsewhere. With a low number of building permits being issued in South Lake Tahoe (130 for the whole basin) we don't have the increase in construction that will increase the supply.

Will home sales drop in Lake Tahoe?

With almost 40% fewer homes for sale in Lake Tahoe and increasing number of home sales we should hit a point soon where the Lake Tahoe homes sales will start to drop. One factor that may affect this is if the median sales price continues to rise, this would prompt more sellers to enter the market.

I can answer any questions you may have about Lake Tahoe real estate. Contact me by email or by phone by calling 530-541-2465.