With the price of homes increasing over the past couple years at the fastest rate in history we are ready for some stabilization. Raising mortgage rates is actually the best strategy to help buyers and bring balance back to the market. A slowing market is a good sign that we are going to gain stability and avoid the crash we had in 2007. Although it is still a seller’s market, the reduction in frenzy-like buying allows for more investment opportunities and eventually more inventory. We will hopefully be gaining some balance as prices will continue to rise (due to our supply and demand issue) but at a rate that is more stable and inline with income growth and interest rates.
In order to see significant declines in home prices, we would need to see significant increase in inventory or significant decrease in buyer demand, neither of which is realistic here at the lake in the near future. Nationwide home price growth is not expected to decline but to slow down in the coming year. We are expecting a healthy year in the real estate market with more opportunities for both buyers and sellers.
Now is actually a great opportunity to invest as many first time home buyers have been priced out and are flooding the rental market. Occupancy levels are near record highs and rents have increased by an average of 17% nationwide which makes investing in rental properties, despite the rising interest rates, an excellent investment! Coupled with the tax benefits of 1031 exchange (which I will go into further detail in next week’s newsletter) real estate continues to be the best investment option for long term wealth accumulation.
If you would like more information on investment opportunities, 1031 exchange tax benefits, or the value of your property, reach out to me as I specialize in real estate investing. If you would like to be included in my quarterly updates please reply with your current address and I’ll add you to my mailing list.
If you have anything you want to share with our community please let us know so that it can be included in our weekly email newsletters. We at the Zager Group are honored to continue to serve our community and are available if you have any questions or if we can provide you with any services, please feel free to reach out anytime. Thank you for the opportunity to serve you and for your continued trust and support!
We had 5 new condos and 2 new homes come onto the market this week. We currently have 16 active condos ranging from $389,000 to $1,300,000; the median condo price is $823,850. We currently have 32 active homes on the East Shore ranging $1,050,000 to $35,000,000 with the median price of $2,775,000. We are yet to see the typical seasonal increase in inventory so our market remains as tight as ever! Here’s a year to date local update:
Local East Shore Lake Tahoe, Nevada Stats – All Year to Date
- Total Sales YTD: Condos: 40 | Homes: 35
- The Median Sales Price: Condos: $695,000 | Homes: $1,700,000
- Number of sales over $1 million: Condos: 10 = 25% | Homes: 31 = 89%
- The highest priced sale: Condos: $5,665,500 (Tahoe Beach Club) | Homes: $32,000,000
- Median Price Per Square Foot: Condos: $507.88 | Homes: $628.13
- Median Days on the Market: Condos: 87 | Homes: 92
If you have any questions regarding our in-depth market update that was sent out in Apr 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