Hot Market Continues in Tahoe - Market Update, March 11th, 2021

Greetings,
 
I hope my newsletter finds you well. It’s hard to believe we are already into the third month of the first quarter of 2021. It's also time to set our clocks forward to enjoy longer afternoons of sunshine. DON'T FORGET WE BEGIN DAYLIGHT SAVINGS THIS SUNDAY, MARCH 14th AT 2 a.m. 
 
After weeks of beautiful sunny days with unusually warm temperatures, winter is back! We were just blessed with two back-to-back snowstorms which dumped over two feet of fresh snow on our ski resorts. As the ski conditions continue to attract many vacation homebuyers to Tahoe, the allure of ownership continues to push demand beyond supply. Demand is up in all neighborhoods and all price points of the California and Nevada Tahoe markets.
 
Many have asked about this demand, wondering what is driving it and how long it continue. While I cannot predict the answer to the second question, I can share with you what we’re currently experiencing, which I don’t believe will change much in the near future. In fact, I think the current trends will continue at least through the end of this year.
 
A few key factors are resulting in record sales and demand:
 

Ownership = Control
After experiencing several on and off periods of shelter-in-place, many Tahoe visitors have come to the realization that the only way to guarantee they can get away to Tahoe is to own a vacation home. In other words, ownership is their passport to Tahoe. Furthermore, with more restrictions being placed on short-term rentals, the availability of homes for rent is an uncertainty, whereas ownership is guaranteed.

Staying Local
Although some travel restrictions are starting to lift, many vacationers are and will continue to be more comfortable traveling safely in their own cars from their primary residence to their vacation destination, rather than getting on an airplane. 

Tax Incentives
My Nevada business has exploded as many Californians are looking to find alternative places to call home while still remaining relatively close to the Bay Area. Neighborhoods such as Incline Village, Glenbrook and Clear Creek are ideal places to establish Nevada residency and escape California taxes. 

Money is Cheap
Interest rates are still historically low.

Sitting on Cash 
“Where else are you going to put your money?” This has been a common statement from buyers looking to park their money somewhere other than the stock market. Since the Tahoe market has a proven track record of appreciation over time (despite the ups and downs), some buyers are looking to Tahoe as an alternative investment.

 

As a result of these incentives, real estate inventory remains at all all-time low. There are only 105 homes on the market as of today, which at our current rate of sales is less than a month's supply. It's a great time to be a seller! If you are curious what your property is worth and/or are wondering what the market looks like your specific Tahoe neighborhood, please contact me. As long as this demand outpaces our supply, I anticipate we'll continue to see price appreciation.