Over the past few years, there have been incredible changes taking place in our housing market. The inevitable fluctuation of supply and demand help to determine stability, growth, or decline within our economy. Although we can use supply and demand on a national scale, it is a great trend to watch even on the local level.
As we mentioned on a previous blog, there have been many advances in the Reno/ Tahoe area that have affected our housing markets. Currently, we are seeing that there is more demand for housing which by cause and effect decreases supply. With less housing available, the median price at with a home can be purchased has also increased.
As more and more people enter into our the job market, housing demand will continue to increase and promote new construction. What does that mean for our housing market? It is the perfect time to sell! If you are have been thinking of selling but you don’t know when the right time is, take a look at these statistics from University of Nevada Reno’s Brian Bonnenfant:
This first graph shows that while fewer homes are being sold (less supply), the median sales price has greatly increased. At this point in our housing market, demand has shifted buyers willingness to pay a higher price for homes. For the market to stabilize, we would have to see new construction take place throughout the Reno/ Tahoe area.
Lake Tahoe is such a diverse area and of course, the effects will vary depending on individual demographics and population. For example, our next statistic provided by the Tahoe Sierra MLS shows the variance between North Tahoe and West Tahoe:
As you can see, while Northshore decreased their number of listing and increased in the median price, Westshore did not. Westshore actually increased the number of homes sold while also increasing their median sale price! This is an example of selling when the time is right! It is an interesting time to follow these trends and see where they take us in the years to come.
Some of the key factors that are contributing to these recent changes are the increase of jobs in the Reno/ Tahoe area. Many large companies are moving into Reno and creating an abundance of new positions!
Another factor that contributes to the increased housing demand in the Lake Tahoe area is rising housing cost in the Bay Area. Many families are buying second homes or making Tahoe their primary home. This is happening because the cost of living in Tahoe is much less than the cost of living in areas like San Francisco. Because Tahoe is relatively close to these major cities, there is more incentive to make the move.