According to a recent article by an NAR analyst, April 16 to 22 is the best time to list your property for sale. Their infographic shows why this period promises the ideal balance that creates a favorable market for sellers.
- There are 9.3% fewer sellers on the market at this time of year.
- The asking price tends to be $48K higher when compared to other seasonal activities.
- Homes sell 18% faster than the average week during the rest of the year.
- They estimate that there are 16.4% more buyers viewing listings during the 3rd week of April.
Market Cool Down
As of March 20, 2023, Lake Tahoe recorded 56.4 feet of snow for the season — the sixth snowiest winter on record. Not only are rising interest rates cooling sales activity, but the snow made it difficult for would-be buyers to get to Lake Tahoe.
We expect great Spring skiing conditions in the next couple of months, which should positively impact sales activity. Inventory is still low, so this is an excellent time to list your property for sale.
While the FED has been consistently raising their rate to combat inflation, their March hike was only .25 of a point rather than the more aggressive hikes of 2022. With the recent bank failures, Treasury Secretary Janet Yellin indicated that banks may tighten lending, which may negate the need for more FED rate hikes.
Currently, the interest rate for a 30-year-fixed mortgage is at 6.96% with jumbo rates at 7.07%. Some buyers are taking action while interest rates are still in the 6% range – while others continue to wait for a downturn. Home prices, however, are not falling due to the lack of inventory.
The First Quarter Sales Report for Lake Tahoe shows this slowdown in sales compared to last year. It also shows how median prices remain somewhat stable.
North Shore
50% of the homes sold on the North Shore of Lake Tahoe were over $1.5 million, while 40% were between $750K and $1.5 million. Only 10% of the sales were under $750K. 10 homes sold at a Median Sales Price of $1.45 million.
Last year, homes were selling at an average of only 38 days on the market. This figure almost doubled to 62 days. This is still relatively low, compared to historical averages. In 2022, 22 properties were sold, but the Median Sales Price was only $1.28 million, showing a 7% rise in the Median Sale Price year over year.
Olympic Valley
The average days on the market for homes in Alpine Meadows and Squaw Valley dropped year over year, from 122 days in 2022 to 93 days in 2023.
Only 3 homes were sold during the first quarter of 2023, but the Median Sold Price was up 9%, from $2.9 million to $3.2 million. The list-to-sold price dipped slightly from 97% in 2022 to 93% in 2023.
Truckee
The Median Sales Price was lower in Truckee during the first quarter of 2023. It dipped 20%, from $1.4 million in 2022 to $1.1 million in 2023.
67 homes sold during the first quarter with average days on the market at 69 days, compared to 124 properties sold in the first quarter of 2022. The list-to-sold price was also down 5% year over year. 24% of the homes sold were over $2 million. 54% of the sales were between $750K and $2 million.
West Shore
In the first quarter of 2022, 24 homes had sold on the West Shore at a Median Sold Price of $1.1 million. During the same period in 2023, only 11 homes sold and the Median Sold Price dropped 16%, down to $950K. 50% of the homes sold were under $1 million, with 33% of homes selling between $1 million and $2 million.
Median Sales Prices on the West Shore can be skewed by one or two multi-million dollar lakefront sales. This quarter, we have a shortage of lakefront listings on the West Shore.
The first quarter 2023 market report demonstrates how sales have slowed compared to last year. However, we were still experiencing a buyer frenzy at the beginning of last year.
It also shows how home values continue to hold steady. There have been a few price reductions, but most sellers are enjoying sales at over 96% sale to list price.
Contact me today for a free property analysis of your home or more detailed information on specific neighborhoods. Listing your property ahead of the influx of listings we expect this summer may be an excellent opportunity to command the best possible price.
