The hot term in real estate across the country is “Seller’s Market”. Sellers are thrilled to know that the market is “theirs”, and buyers know that it means the market is not in their favor, but what does it really mean? The simple term is that it just means there are more buyers than sellers. When listing or buying homes for sale in South Lake Tahoe, it is crucial to know what kind of market you are in. In a seller’s market, the demand outweighs the supply. In a buyer’s market, it is the opposite, which means buyers have more room to negotiate and have a higher chance at getting a good deal.
Since we covered what a seller’s market is, let’s cover where they are at. Currently, the vast majority of the U.S. is in a seller’s market. Which those of us living in California, especially so close to the Bay area, already know. However, the 20 largest cities in the country, and their surrounding areas are all dealing with record low inventory and increasing prices. To put the South Lake Tahoe real estate market in perspective, the month supply needed to be considered balanced is a 6. Anything less than 4 is a seller’s market. South Lake Tahoe real estate is currently at a 3.6. Currently, the only neighborhood that has over 6 is Tahoe Keys, which also has a higher price point. Which brings us to another point: Every neighborhood and area is different. Your realtor in South Lake Tahoe will be able to give you a tailored market analysis based on comparable solds in your area. They will also be able to tell you what your neighborhood market supply is. Yes, real estate in South Lake Tahoe (in general) is a 3.6, but each neighborhood varies.
As a buyer looking at homes for sale in South Lake Tahoe, you may be wondering when this will get better? Predictions are always tough to nail with 100% accuracy, however, experts have stated that by the end of this year, they are hoping that the supply will start to ease up as so many builders rush to satisfy buyer needs. Of course, this has caused construction costs to skyrocket, but that is pretty standard.
You also may be wondering, how does this happen? There are actually a few factors that go into this. Job growth is one aspect. This brings population growth, which is another aspect. Demand starts exceeding the supply. Housing starts is another. This term is used for the number of new construction started by builders.
So how can you tell if you are currently in a seller’s market? Well, your South Lake Tahoe realtor, for one. Other indicators are how long South Lake Tahoe homes for sale are sitting on the market before accepting an offer. The percentage of list price is another. If the home is getting 100% or over of the asking price, chances are good that you are in a HOT market. If the prices for South Lake Tahoe homes for sale continue to go up, this is another good indicator that as a buyer, you may have your work cut out for you. In fact, this is why the use of a South Lake Tahoe realtor is crucial. Regardless of if you are listing or buying homes for sale in South Lake Tahoe, a local realtor can help you navigate the entire process from start to finish. From a seller’s perspective, a realtor in South Lake Tahoe is going to help you craft a competitive list price that a buyer will find attractive. As a buyer, they will work to get you into brand new listings as soon as possible so you can get an offer in quickly. They will also make sure you are prepared ahead of time. From getting pre-approved to helping you determine what exactly it is you want vs. need. Whether it is waving contingencies or broadening your search to other areas, they will offer you options as they guide you through this exciting journey. For more information, give us a call. We would be happy to help!