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.
El Dorado County recently announced that any vacation home rental found to be operating without a permit will not be permitted to obtain a permit until all past due transient occupancy taxes, penalties and interest are paid in full and will be precluded from applying for a vacation home rental permit or from being added to the waiting list for a one year period.
Renewals of existing permitted vacation home rentals in the Tahoe Basin, for which a vacation rental permit was granted based on an application submitted on or before November 1, 2020, shall not be limited based on the cap requirements.
An application to renew a permit for a vacation rental shall be submitted no sooner than 180 days before the expiration date of the existing permit, and no later than the date of expiration of that permit. Upon receipt of a complete application, the expiration of the existing permit shall be stayed until final action is taken on the renewal application.
Children five years of age or younger are not counted towards the occupancy limits. Occupancy may be lowered pursuant to the outcome of the fire and life safety inspection.
A bedroom shall only be recognized as such for purposes of this ordinance if it has been approved and inspected by the Building Official, and can be verified by
reference to the Assessor’s office.
Skyland is one of the few neighborhoods on the Nevada East Shore to have not sold as many properties as the previous year. In 2019 and 2020 there were a total of 11 sales each year. One of the predominant changes thus far in 2020 has been the reduction in the total average days on market to sell a property. 2020 saw days reduced from 185 in 2019 to 97 this year. Homeowners will be happy to know the median average sales price has increased 5.6% from $1,197,000 in 2019 to $1,265,000 this year.