South Lake Tahoe and Nevada East Shore Real Estate
Both South Lake Tahoe and the Nevada East Shore experienced a sharp drop in the number of new listings last week. This could be because many sellers prepare their homes for listing over the 4th of July weekend. Thus pending sales took over again at South Lake as new listings trailed those entering escrow for the first time since the beginning of June. The East Shore however added more inventory than property entering escrow.
Montgomery Estates is conveniently located mid way between Stateline and Meyers, California, offering various settings and price ranges. Bordering both sides of Pioneer Trail the community is surrounded by U.S. or CA State Land, and is an excellent place to hike, bike or snow shoe. Most of the home sites in the neighborhood are 1/4 to 1/3 acre with some offering spectacular views. If you have children, and schools are a priority then you will be pleased to know Sierra House Elementary School is located within the neighborhood too. As of July 2021 the area had an average median sales price of $765,500. Hike and bike trails are accessible from the neighborhood to most recreational locations.
I see a trend occurring in both our South Lake Tahoe and NV East Shore real estate market. If you’re a buyer whose been waiting on the side lines or a seller waiting for the market to continue upward then you may want to read on. For the last year we have constantly seen more properties entering escrow than have come on the market. However since the week before Memorial Day that trend has started to reverse. At South Lake this week we saw over twice the amount of new listings as property entering escrow. It was the same over on the NV East Shore. If this trend continues we could see market values start to stabilize.
The Nevada East Shore took a dive in new listings last week. This was the first time since mid-March new listings fell behind the number of properties entering escrow. South Lake Tahoe had a 30% increase in new listings just beating out the number of properties entering escrow. Closed sales for April 2021 more than doubled on the East Shore from last year while sales tripled from one year ago at South Lake Tahoe.
In the past six months, rental prices in Lake Tahoe and Truckee have risen by 25% to as much as 50%. Last year, a three-bedroom home might have rented for $2,000 to $2,500. Now, those same homes are renting for closer to $3,000 a month, while larger houses are renting for $5,000 a month, or higher. Many landlords however are seizing the opportunity to sell homes they previously rented to locals. The best way to get a place right now is knowing someone who knows someone, said a woman on Facebook looking for a rental.
Single family sales continue to climb through the last week of February at South Lake Tahoe. There have been 85 property sales since January 1st as compared to only 52 last year at this time. We currently have 53 properties on the market starting at a price point of $399,000. On the Nevada East Shore sales have more than doubled to 26 units this year as compared to only 10 units in 2020. There are currently 20 single family properties on the market starting at a price point of $725,000. We need inventory!
What happens when the foreclosure moratorium ends?
For homeowners who are not in good standing in a forbearance program, servicers may begin or resume the foreclosure process.
Homeowners in a forbearance program have through the end of the program to begin making payments again. Once their program ends, they may also apply for an extension. Further, when they begin to make payments again, homeowners will need to talk to their servicers about their options for repaying the mortgage payments missed during their forbearance period.
But many homeowners will be unable to qualify for forbearance or unable to make payments once their forbearance program expires. In fact, in California alone there are still roughly 1.4 million people out of work compared to pre-pandemic levels, encompassing renters and homeowners. Still others continue to work but have seen their incomes reduced.
firsttuesday forecasts foreclosures will begin impacting the market in the second half of 2021. These distressed sales will pull down home values and cause homebuyers to pause their plans to purchase. Home sales volume and prices will decline through 2022, bottoming in 2023. Get the full story here.