Lake Tahoe Properties

Real estate is cold across the country, but in some upscale neighborhoods in the Lake Tahoe area real estate has never been hotter. In fact, one popular upscale region, Incline Village, saw a 45% sales increase in the third quarter of 2007 compared to the same quarter of 2006.

On the eastern shore of Lake Tahoe sales were up 11% over last year, although prices fell about 12% from last year’s rather astronomical levels. San Francisco was also seeing an increase in high-end property sales, which is significant because San Francisco is considered a feeder market for the Lake Tahoe area.

ReviewJournal.com - Business - High-end property draws record prices despite downturn

Anyone who has tried to sell a home in the Lake Tahoe area in the past few months could probably tell you that the real estate bubble has deflated. It may not have been a burst, because prices can only go so low in an area so desirable, but they are down from a year ago, and there seems to be fewer interested buyers.

Is there anything that can be done about the housing slowdown? Not really, it’s just part of the usual ups and downs of the housing market. I would not suggest making a series of expensive home improvements in hopes of finding a buyer. Just wait it out and the hot market will return. If you must sell now, the prices are not as low as many might think. Some would even say we’re at close to fair market value in LT and much of the country right now. That’s after seeing prices inflate due to low interest rates in the previous 4 years.

Of course, lower housing prices is great news for anyone looking to buy around Lake Tahoe. For people who have recently retired and are looking for a new place, I would suggest finding something within the next year. I’ll be short with the economic explanation, but interest rates are expected to fall in the next year. The effect will be delayed by 12 to 18 months, but it will likely include more demand for housing. In areas where there is little room to build new homes, the real estate market is likely to shoot up rather quickly.

In the next post, I’ll be looking at more economic factors that will impact the real estate market, along with some specific homes that are on the market right now. I’ll also be showing some great tools that you can use to help you buy or sell a home.

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