Our housing market has continued to shift in response to inflation and other factors both nationally and statewide. With continued, expected higher interest rates, and lessened buyer demand, we adjust our approach to the local market based on what we know.
California Association of Realtors (CAR) 2023 housing forecast predicts a decline in existing single-family home sales of approximately 7% in 2023. For comparison, in 2022, California single-family home sales were 20% lower than 2021 home sales (this is the difference of approximately 80,000 homes statewide).
What does the shift in market mean? For buyers, there is less competition in the market. There will be a normalization in home sales, predicted by CAR. Buyers and sellers alike will adapt to the new market conditions. Well priced homes will continue to sell quickly, as there will also be fewer homes selling above asking price. The market will become more favorable for buyers, where it has over the past few years been fiercely competitive.
Keep in mind, Tahoe is a bit of an outlier. As a region, we’re not feeling the impacts as much as other competing communities. Homeowners have equity and aren’t desperate to sell, and many prospective buyers have substantial cash to offer.
In our Tahoe region specifically, with little inventory and anxious, eager buyers, we are advising sellers and buyers to objectively evaluate their approach with their real estate partner.