Home Prices Continue to Rise in Lake Tahoe

We’re half way through the summer and the housing market remains robust in the Tahoe area. Mortgage interest rates for a 30 yr fixed remain hovering around 4% without points which strongly contributes to buyer demand. The graph below shows the average sale price for homes on the North Shore and West Shore of Lake Tahoe under $1 mil.

Inventory levels of current homes for sale is much lower than they were a year ago which also contributes to the buyer demand and increasing prices. Year over average sales prices were 15.6% higher in May, 20.2% in June, and 14.6% higher in July.

We have not reached the pre-recession peak prices yet. With the growth that we have been experiencing sellers are feeling more comfortable selling. This could increase inventory levels and help to taper the rates of growth we have been experiencing. Even with growing prices it remains it a great time to buy with the amazing interest rates.