South Lake Tahoe Real Estate Forecast
South Lake Tahoe Real Estate Forecast for 2023
Over the past year, home prices in South Lake Tahoe have been a widely debated topic. On a national level, some have said we’ll see a massive drop in prices and that this could be a repeat of 2008 – which hasn’t happened. Others have forecasted a real estate market that could see slight appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what they believe will happen with home prices this year and beyond.
Selma Hepp, Chief Economist at CoreLogic, says:
“While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility highlights how much uncertainty remains. Nevertheless, the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.”
Additionally, every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts regarding their five-year expectations for future home prices in the United States. Here’s what they said most recently:
So, given this information and what experts are saying about home prices, the question you might be asking is: should I buy a home this spring? Here are three reasons you should consider making a move:
- Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has risen consistently. The bottom line is, rent is going up.
- Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
- Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a renter.
The current inventory of homes for sale in South Lake Tahoe has remained extremally low, partially due to the record breaking snowfall that the Sierran Nevada’s have seen this year. With over 52 feet of snow recorded (and still counting) this winter, listing and selling homes has taken a bit of a back seat.
There are currently only 36 active single family homes and 8 condo/townhouses listed on the South Lake Tahoe MLS. This is up slightly from last year to date. The number of homes in escrow is down significantly from last year. Currently there are 33 pending sales on the mls compared to 8o pending sales in March, 2022.
I am predicting that we will see a significant increase in the number of homes for sale from April through July as the weather improves and as the snow melts. This historical winter has delayed many sellers from listing and additionally, we usually see a significant bump in our housing inventory in the late spring and early summer.
Experts are projecting slight price depreciation in the housing market this year, followed by steady appreciation. Given that, you may be wondering if you should move ahead with buying a home this spring. The decision to purchase a home is best made when you do it knowing all the facts and have an expert on your side.
If you have any questions about the South Lake Tahoe real estate market, please call me today at 530-416-2625 or shoot me an email at bjohnson@chaseinternational.com!
