Memorial Day Signifies a ShiftMike Montalbano, May 25, 2018 in Market Trends, Memorial Day, Savvy Sellers, Shift
Market dynamics are poised to change over the next 7-10 days
Regardless of geographic region real estate trends are very relevant for prospective buyers and sellers. The North Lake Tahoe area, a blend of market segments including luxury and non-luxury properties & resort and non-resort communities, experiences even more perceptible seasonal trends.
Memorial Day is significant for a different reason than many believe – it’s not the start to summer. According to Wunderground.com, 4 of the previous 5 Memorial Days were on average colder than historic temps and precipitation was 80% more likely.
Instead of the perceived seasonal weather shift, Memorial Day is significant for the shift in seller mentality and subsequent increase in new homes coming to market.
Currently there are just 384 single family homes actively for sale across the region. Pending home sales are equivalent to 1/3 of the total supply. Leading to Memorial Day new inventory will outpace the observed absorption in a significant way. This noteworthy trend represents a departing shift from current inventory constraints.
Recent conversations and experiences with clients have revealed growing frustration with the competitive marketplace. As competition increases, as evidenced by the shrinking Average Days on Market during the same period from Prior Year, the idea of surplus inventory is welcomed by many willing, able, and ready buyers.
2017 Trades – 99 Days on Market
Many Savvy Sellers elected to bring their homes to market earlier than previous years. Those were rewarded with increased sales volume, average price, and median price – up 22%, 48%, and 36%, respectively.
Over the course of the next 7-10 days anticipate an inventory spike. Active Listings will grow with more options available than those of Q1 & Q2 to date. Prospective buyers will have ample time to move in prior to July 4th, the true start of summer in Tahoe.