“People are surprised that prices are rising, not falling, because in the last recession home prices fell, the difference this time is the severe shortage of homes for sale. We are seeing bigger price increases with [a limited] number of homes…That is likely to lead to more competition and potentially multiple offers and bidding wars.”-Danielle Hale, Chief Economist at realtor.co
While Governor Newsom has put a “dimmer switch” on reopening due to a spike in Covid cases, buyers are still entering the Lake Tahoe real estate market in full force. As it currently stands, our month supply of 4.1 is very much in a seller’s market and homes for sale in Lake Tahoe are pending quickly with multiple offers and in some scenarios, over ask. When we went into the Shelter In Place order, the housing market was predicted to bring our country out of the recession it most definitely found itself in. Currently, in the present moment which we know can change, that is proving to be true. There is a surge in demand for homes for sale in Lake Tahoe and not enough inventory to satisfy that demand. This has not only caused for an increase in prices, but it has also caused for more bidding wars and properties closing for full ask if not over. So, what does that mean for you as a buyer? Here are a few key things to know.
- Get Pre Approved, not Pre Qualified. Those two are not the same. One tells you how much your loan is for while another is simply a guesstimate. Sellers right now do not want people touring through their Lake Tahoe homes for sale if they do not have an approval letter from their bank. Which makes perfect sense as we are in a world that is requiring masks, social distancing and staying at home unless you absolutely have to leave. In the world of real estate, it is requiring booties, gloves, masks, hand sanitizer, spacing out how many people can enter the home and special forms. Additionally, with it being a seller’s market, things move fast. You have to come to the table with proof of funds and a competitive offer.
- Hire a local Lake Tahoe Realtor who has years of experience, a proven track record and who you feel you communicate well with. A true real estate professional has your best interest at heart. They will not show you homes for sale in Lake Tahoe that are above your budget or don’t match your needs simply because they are looking for a check. They will instead listen to you and act as your trusted advisor and advocate throughout the entire transaction and beyond. Buying property doesn’t always go according to plan in a normal market, add in the constantly changing protocols of Covid-19 and low inventory and you need someone who can pivot fast if something changes or help you get creative if things look like they are starting to fall apart.
- Be patient and be realistic. This is where a quality and genuine Lake Tahoe Realtor comes into play. They will know and understand your goals and make sure you don’t make decisions based off of desperation and panic. With Lake Tahoe homes for sale moving so quickly, you may try to convince yourself to do something you will later regret. Examples include: buying way over budget (overextending yourself financially is never a good way to go), giving up certain things you REALLY want like being in a certain neighborhood or having a certain number of bedrooms. I know that it can get frustrating when you find yourself outbid or having a listing go pending before you can even schedule a tour or put an offer in, but buying real estate is a big investment. One you shouldn’t regret later on.
For more information on buying Lake Tahoe homes for sale, or general information on real estate in the area, give me a call. I would be happy to help.