2017 was a banner year for real estate all over the U.S. and South Lake Tahoe real estate was no exception. Thanks to a record winter and a high demand for homes for sale in South Lake Tahoe, local realtors worked over time throughout 2017 going to bat for their clients as they helped make real estate dreams come true. So what is in store for 2018? The experts have weighed in and we have an exciting year to look forward to for both buyers and sellers. Check out these forecasts for the next year so you can prepare yourself regardless of whether you are selling or buying homes for sale in South Lake Tahoe!
Inventory shortages will drive the housing market.
Low inventory is expected to continue pushing prices for homes for sale in South Lake Tahoe up. This will continue to impact first time home buyers as they attempt to save for a down payment and find South Lake Tahoe real estate that fits their needs and is within their budget. In fact, there are fewer homes for sale in South Lake Tahoe on the market compared to this time last year with a lot of the properties available being in higher price points that new buyers can’t afford.
Builders will turn their focus to entry-level homes.
Thankfully, builders are expected to focus their new construction on affordable homes for sale in South Lake Tahoe which will be necessary in bringing down home prices.
Homeowners will remodel instead of sell.
While homeowners feel confident about being in a sellers market, the lack of inventory makes it difficult for people to move into something new. This has experts predicting that current homeowners will remodel their current South Lake Tahoe real estate instead of selling it.
Millennials are heading to the suburbs.
We all know Millennials love their urban cities with no end of amenities. Truly, city living offers a convenience that suburbia doesn’t. However, the cost of living in these cities have skyrocketed to the point that a majority of millennials cannot afford to stay. Or the cost isn’t worth it. In the past couple years we have heard several stories of gainfully employed Bay area residents who can no longer afford to live in the city in which they work. This is pushing people to the outskirts where living is more affordable. Because there are so many tech jobs based out of the bay where working remotely is an option, we are curious to see if some of our weekend warriors end up calling Lake Tahoe home as the cost of living is considerably cheaper.
South Lake Tahoe Homes for sale prices will continue to grow, but at a slower pace.
Economist called 2017’s record breaking home price growth unstoppable. 2018 is expected to see a 4.1% increase, which is higher than normal, but considered to be slower compared to the current annual pace which is at 6.9% presently.
If you are serious about pursuing your South Lake Tahoe real estate goals, working with a South Lake Tahoe realtor is the key. For more information on buying and selling, give me a call. I would be happy to help!