Is It Time To Sell Your Lake Tahoe Home?
Experts Say It May Be Time to Get off the Fence
According to Realtor.com, the week of April 10th to the 16th is the best time to list your property for sale. This is because buyer demand and home prices are believed to be reaching a peak. While this is one of the strongest seller’s markets to hit Lake Tahoe, there are factors at play that could affect demand.
The low supply and high demand has led to multiple offers, shorter escrows and rising values. While some sellers are waiting to see how high values will go, other factors will begin to have an influence on market activity.
At the beginning of the year, many forecasters predicted interest rates to be at 3.4% in March of 2022. However, rates have shot up to 4.75 in some markets for a 30 year fixed mortgage.
According to Freddie Mac, the average 30-year fixed rate mortgage rose 1.2% just this year. Interest rates were at 3.22% in January, and are now upwards of 4.42%. Just recently, rates rose a quarter of a point. Inflation and uncertainty may continue to drive rates higher, which will limit “consumer purchasing power.”
Nadia Evangelou, senior economist and director of forecasting for the National Association of Realtors said: “mortgage rates have increased faster than expected in the last couple of weeks. In the meantime, elevated inflation will continue to put upward pressure on mortgage rates, as it will take several months for the Federal Reserve to slow it down.”
Best Time to Sell
According to Zillow, “the best time to sell a house is March if you’re trying to sell quickly, while the best time to maximize profit is July.” By October, most markets begin to cool down. However, with so much demand, buyers are forced to spend more time shopping and seasonal factors are no longer at play.
It is believed that inflation won’t be cooling off until after the Fed implements several rate hikes this year. Many buyers are rushing to get a good interest rate, but with rising home prices and higher interest rates, affordability may slow the market.
What this means for sellers is the sooner a home is listed for sale in 2022, the more likely the seller will have access to more buyers. If interest rates do continue to rise and stall the market, a correction usually follows.
There has never been a better time to list your property for sale. We are one of the most respected team of realtors in the Lake Tahoe and Truckee region. Contact us today for a free market evaluation of your property.
At the same time, there has never been a better time to enter the market as a buyer. Rents have risen 30% across the US because Wall Street has entered the market with all cash offers. Being a renter is quickly losing its value. Contact us today for a list of available homes and to learn about ‘coming soon’ homes that have not yet hit the market.