The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
The real estate market in the Lake Tahoe area is booming. Despite the crippling effects the pandemic has on the economy, many are still trying to grab a piece from this prime location. This place is getting snapped up due to tech workers from San Francisco searching for better space and a healthier lifestyle.
However, before you decide to visit Lake Tahoe to find a place to buy, you need to know some basic information about the site and the current situation in such an area.
Basic Info About Lake Tahoe
This lake is a big freshwater lake in the United States’ Sierra Nevada. Lake Tahoe is the biggest alpine lake in North America, and with a volume of 150.7 km3, it is second only to the five Great Lakes in the United States. It is the second deepest lake in the United States, behind Crater Lake in Oregon, roughly 594 meters deep. It spans the state line between California and Nevada, west of Carson City, at 1,897 meters.
In both Nevada and California, Lake Tahoe is a popular tourist destination. One can find Winter sports, summer outdoor recreation, and year-round scenery here. The business and reputation of the area are heavily reliant on snow and ski resorts. There are multiple lakefront casino resorts on the Nevada side, and highways provide year-round access to the entire region.
The lake was formed as part of the Lake Tahoe Basin about two million years ago and molded to its current extent throughout the ice ages. It’s famous for its clear waters and panoramic views of the surrounding mountains on all sides. Lake Tahoe, or simply Tahoe, is the name given to the area surrounding the lake. The United States Forest Service oversees more than 75 percent of the lake’s watershed.
Lake Tahoe is also home to some old palatial residences from the 19th and 20th centuries. The Pony Express ran from Genoa Station to Friday’s Station and Yanks Station through Daggett Pass; it replaced the route that ran through Woodford’s Station and Fountain Place Station on its way to Strawberry Station.
George Whittel Jr’s Thunderbird Lodge formerly included over 43 kilometers of Nevada seashore. Vikingsholm, an island teahouse and a 38-room residence, was the first settlement on Emerald Bay. The Ehrman Mansion, a former Wells Fargo president’s summer home in Sugar Pine Point, is now a state park.
The “Flee” From the City
A new wave of urban flight is changing real estate markets. Lake Tahoe is experiencing record bidding wars, purchasing activity, and price spikes resulting from this shift. According to brokers, the inventory of homes for sale has decreased from one-fifth to one-tenth of what it was previously.
Ever since the pandemic began, many people, especially those from the tech industry, wanted to get away from the confines of their small city apartments and move into a more spacious home. With the money to do so, they hurriedly snatch up some of the best dwellings they can find in the market.
The State of the Market
Until now, demand for real estate property in this prime location is high and will continue to remain in the foreseeable future. Most of the dwellings near or in the Bay Area are selling like hotcakes. Depending on the area, home prices surrounding Lake Tahoe have risen by 20 to 90 percent.
For example, Truckee has witnessed some of the most significant rises. There are so few homes left on the market, and those that do become available are in high demand. Buyers wanting to enter the market now should expect a tough time. Even though the pandemic is slowing, demand continues to be high.
The properties are also complete with the latest features that increase their values. One can see features like a roof hatch with a wood curb that provides safety when accessing roof areas. By ensuring the installation of these details, the houses retain or even increase their value.
What’s Going on Right Now
New homes are rising in some areas, such as near Squaw Valley, but not nearly enough to match demand or reduce overall costs. For the foreseeable future, the Tahoe real estate market will remain strong. When things return to normal, people anticipate prices to decrease.
The situation now is that in the last 12 months, the vast majority of buyers have paid cash or gone through a bank inspection. Everything about this market indicates that it will continue, but demand will eventually decline, and the market will return to balance. In Tahoe, there is currently just about a month’s worth of supply.
Because there are so few homes for sale, many purchasers opt to buy vacant land and construct their own homes. The waiting lists for local builders and architects are getting longer, according to them. Brokers have been knocking on doors in an attempt to persuade homeowners to advertise their properties.
People who could have sold their homes in a regular season retain them because they need a place to live. The inventory is rapidly depleting, and brokers run out of homes to sell because supply is minimal.
It is an exciting moment to know that despite the negative impact of the pandemic on the economy, there are still thriving sectors. Most of the now-present changes will likely stay and help shape the new normal we will face. If you require a solid piece of advice, consider consulting a professional who can guide you to making an informed decision.