2018 Real Estate Forecast

2017 was a big year for real estate all over the United States and South Lake Tahoe real estate was no exception. We saw record low inventory, increased home prices and thanks to a heavy winter, us Tahoe Keys realtors were busy all year around. Interestingly, Tahoe Keys real estate was in a buyers market the majority of the year but this neighborhood had the highest prices on the California side of the South Shore. Meanwhile, the rest of our neighborhoods on the South Shore were in a sellers market. Experts have already shared their forecasts for 2018 and this year is expected to be another big year in the industry. What is in store? Check it out!

Inventory shortages will drive the housing market. 

Low inventory is expected to continue pushing prices for homes for sale in Tahoe Keys up. This will mostly impact first time home buyers as they save for a down payment and try to find Tahoe Keys homes for sale that fit their  budget. Interestingly, one of the points that experts made about 2018 was that we would eventually see relief for buyers, but it would be in the higher price points. This is true for Tahoe Keys real estate so far. 

Builders will turn their focus to entry-level homes. 

Which brings us to out next point. Builders are expected to focus their efforts on building affordable homes for sale in Tahoe Keys which will be necessary in bringing down home prices and ultimately balancing the market back out again. 

Homeowners will remodel instead of sell. 

While homeowners feel confident about being in a sellers market, the lack of inventory makes it difficult for people to move somewhere else after they sell. This has forecasts stating that current homeowners will remodel their current Tahoe Keys real estate instead of selling it.

Millennials are heading to the suburbs. 

We all know Millennials love their urban cities with conveniences that are hard to find in suburbia. However, the cost of living in these cities have gone up so much that a majority of millennials cannot afford to stay. Or the cost just isn’t worth it anymore. With people wanting to start families and make investments where they live, we are seeing this particular age group being pushed to suburban areas where living is more affordable. As Lake Tahoe is more affordable than San Francisco and Silicon Valley areas, we are curious if any of our weekend warriors will call Tahoe Keys home and work remotely. 

Tahoe Keys Homes for sale prices will continue to grow, but at a slower pace. 

Economist called 2017’s record breaking home price growth unstoppable. 2018 is expected to start off with a higher than normal increase, but will be considered slower compared to the current annual pace which is at 6.9% presently.

If you are serious about pursuing your Tahoe Keys real estate goals, working with a Tahoe Keys realtor is so important for success. For more information on buying and selling, give me a call. I would be happy to help!

 

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