If you are buying South Lake Tahoe real estate, you are probably wondering why inventory is SO low! If you are new to the real estate process, low inventory means the amount of homes for sale in South Lake Tahoe is not high enough to satisfy buyer demand. The answer to this complicated issue is a multifaceted one. Lets take a look at some of the reasons.
Homeowners Don’t Feel The Urge To Move
63% of homeowner are good with where they are at. 33 million baby boomers specifically. 85% of these homeowners have no plans to sell within the next year with 72% of them stating that their current home fulfills their needs. They aren’t the only ones though. 52% of millennials and 65% of Generation X homeowners said the same. In addition to being content with their current home, 16% don’t want to move thanks to the low mortgage interest rate while 13% don’t want to move due to low property taxes. Another 13% said they wanted to make upgrades.
Homeowners Hesitant To Sell Due to Low Inventory & High Prices
Let’s face it, mortgage interest rates may be low, but South Lake Tahoe real estate prices have gone up. Seller’s don’t want to put their home for sale in South Lake Tahoe on the market when they know they could potentially faces some challenges finding another home that they may have to pay more for. If you are buying real estate in South Lake Tahoe, don’t let that news discourage you. While a majority of sellers have no plans of listing their home for sale in the near future, there are 35% that do. And of those 35%, 60% want to trade up. When this happens, the housing market could get a much needed boost. In fact, data has shown that this upcoming boost could be as soon as next year.
Of course, waiting until next year has its disadvantages. Mortgages are still hovering right around historically low interest rates and prices on homes for sale in South Lake Tahoe are going up. This results in a very competitive South Lake Tahoe real estate market for buyers who are desperate to purchase before interest rates and prices continue to climb. If you are looking to buy real estate in South Lake Tahoe, making sure you work with a qualified realtor is crucial. Not only can they successfully guide you through the process and act as your advocate, but they usually have information on homes coming on to the market. Which means, you have a good chance of getting a preview before it hits the market. If buying is a time sensitive issue for you, A South Lake Tahoe realtor will have suggestions and solutions fit for you. For more information, give us a call at 530-543-6676.