Business as usual? It seems like it has been a long time since we have truly had business as usual. Maybe the recent market flow is the new norm. There continues to be what feels like no shortage of demand. While supplies have improved over last year, it is still well below historical levels. Will we ever see those historical levels again? It sure doesn’t feel that way. Even as the spec builders continue at a strong pace the availability of new homes is almost exclusively at the upper end of the market leaving the lower end still struggling to find homes for sale. The sad part is that the lower end used to encompass the say $500K and below range. Now it seems to encompass the $700K and below range. To put it in perspective, out of the 204 currently active single-family homes listed in our local North Tahoe and Truckee region, just 33 are priced below $700K. Take it a step further and recognize just 1 of those are in the $300-$400K range, 5 are in the $400-$500K range, 14 are in the $500-$600K range and the remaining 13 are in the $600-$700K range. The first of these to offer 3 bedrooms, 2 baths and a 2-car garage is at $460K. I recently had the opportunity to show this house and it needs a ton of work.
Long term rentals are still in high demand. I continue to see multiple postings on most days looking for long term rentals available. I think a couple things are going on. As many people are moving out of the area, they are selling homes and those homes are being purchased for full or part time residents. Our community is continuing to grow with people moving to the area as full-time residents and wanting to rent before they buy. Some of those are for even shorter term 6-month periods. Since many of those folks are coming from the bay they are used to and can afford higher rents allowing home owners to continue to push for higher rents. This is pricing out some of the locals making it harder for them to find places they can afford. If you have a property that is not being utilized and want to help our community and your finances, please let us know. You might be surprised to hear where rates are at.