The first official day of Spring may still be a few days away, but the Spring housing market is already underway. Buyer traffic is rising along with home prices, but one traditional Spring phenomenon is sorely absent: rising supply. The raw number of homes for sale is now at its lowest level in over 13 years, according to the National Association of Realtors, and the numbers continue to fall.
Supplies are down across the nation. In South Lake Tahoe listings are down 45.9% percent from a year ago causing fierce competition among home buyers.
It’s a seller’s market again. We have very low inventory and almost no distressed homes on the market. Most properties that are being listed are going into escrow within a few days and in many cases receiving multiple-offers.
As a result, short sales, where the home is sold for less than the value of the mortgage, are rising as a share of total distressed sales, while bank-owned home sales are falling. Investors are now competing for such little supply that they are ironically pricing themselves out of the market.
We are seeing this trend all over the country and it’s the same story in South Lake Tahoe CA, where there were 419 listings in March of last year and just 264 listings on the market today. Real estate agents are doubting that they will see a surge in inventory this Spring.
Source: RETahoe.com – posted on March 9th, 2013 by Fernanda Dozier – http://www.retahoe.com/2013/03/low-inventory-of-homes-for-sale-in-south-lake-tahoe/