The State of the Real Estate Market
The National Association of Realtors (NAR) recently came out with a list of the top 10 cities that they anticipate will be the best places for real estate in the next 3 to 5 years. In alphabetical order they are Charleston SC, Charlotte NC, Colorado Springs CO, Columbus OH, Dallas – Fort TX, Fort Collins CO, Las Vegas NV, Ogden UT, Raleigh – Durham – Chapel Hill, NC and Tampa – St. Petersburg FL.
Now how is this related to real estate at Lake Tahoe? The reality is that just like politics all real estate is local. You can’t really make sweeping generalizations for the entire United States because at any given time some markets are trending up, some are moving down and others are going sideways. What all of these 10 markets have in common that makes them completely different from Lake Tahoe is the cost and availability of raw land.
Also, the cost of new construction in almost every one of these areas is far below that of the Lake Tahoe basin. And employment opportunities are much more abundant. This creates opportunities for broad based economic growth in these 10 regions. They also (for the most part) do not face the extremely strict legal and environmental regulations that affect development at Lake Tahoe.
However, the finite supply of buildable land at Lake Tahoe along with proximity to some of the wealthiest communities in America results in housing prices that far exceed the national average. But, the vast majority of local jobs do not pay wages that are sufficient to make purchasing a home affordable. What makes the 10 places listed above so attractive in many respects is that they also have a decent level of affordability relative to local incomes.
A lack of affordable housing in many areas of our nation has been a contributing factor to the problem of homelessness. While there are many different reasons why a person could be homeless, those geographic areas with nice weather and very high housing prices have seen the problem become particularly acute.
Reflecting on the local state of real estate, since 2012 the market at Lake Tahoe has generally been in a nice steady uptrend. While overall sales in 2019 are below the very big year of 2018, the real estate market at Lake Tahoe will likely remain a bastion of strength into the foreseeable future.
Weekly Real Estate Update
Statistics gathered from the Incline Village MLS on 12/22/19
Houses Condos PUDs
For Sale 95 51 14
Under $1 million 12 26 7
Median Price For Sale $1,995,000 $988,000 $895,000
YTD Sales 2019 180 161 59
YTD Sales 2018 160 185 65
New Listings 5
In Escrow 7
Closed Escrow 8
Range in Escrow $320,000 – $3,550,000
These statistics are based on information from the Incline Village Board of REALTORS® or its Multiple Listing Service as of December 22, 2019