The economy has been on the rise, which of course is a great thing but a strong economy is more about sustainability than a constant steady rise. The central bank’s main goal is stability and that means attempting to maintain growth that is balanced and sustainable. Interest rates are the easiest way for the Feds to balance out the economy when inflation is increasing at a pace that is creating an imbalance in the marketplace. So some pain today, in the long run, means more strength and stability in the future. When interest rates rise, both personal and business projects that require financing are put on hold. This reduces the amount of circulating money, which slows the economy and prevents over inflation.
The rise in interest rates has a trickle down effect on the whole economy. When borrowing money is more expensive, the cost of doing business for companies becomes more expensive which means lower revenue, slower growth rates, and lower stock values. What is currently having more of an effect on the stock market is that traders are responding to the interest rate hikes by moving money into more defensive investments as opposed to waiting for the market to balance back out. This continues to bring investors to the lake and drive our median home price up another $50k this week. It is still a sellers market here and if you are considering selling your home this year, April is the month to do it! The average home sale is typically 2.8% higher in April nationwide which translates to about an additional $25K for a condo and $50K for a single family home locally!
We had 2 new condos and 3 new homes come onto the market this week. We currently have 14 active condos ranging from $339,000 to $1,300,000; the median condo price is $836,900. We currently have 31 active homes on the East Shore ranging $1,050,000 to $35,000,000 with the median price of $2,850,000. As you can see from last week the number of condos and homes for sale has stayed the same. We are still waiting for the typical spring increase in inventory!
Year to Date Local East Shore Lake Tahoe, Nevada Stats:
Total Sales YTD: Condos: 40 | Homes: 33
The Median Sales Price: Condos: $695,000 Homes: $1,800,000
Number of sales over $1 million: Condos: 10 = 25% | Homes: 29 = 88%
The highest priced sale: Condos: $5,665,500 (Tahoe Beach Club) | Homes: $32,000,000
Median Price Per Square Foot: Condos: $507.88 Homes: $626.17
Median Days on the Market: Condos: 87 | Homes: 103
If you have any questions regarding our in-depth market update that was sent out last week or would like an evaluation of your property’s value I would love to hear from you! I’ve put together some information below that I think you’ll find useful. If you have anything you want to share with our community please let us know so that it can be included in future newsletters.
Thank you!
Craig Zager & The Zager Group