Real Estate Market Trends

According to Freddie Mac, a government sponsored agency that buys mortgages to keep the market fluid, interest rates have dropped to a 7-month low. The 30-year fixed-rate mortgage dropped to almost 7% this week, down from nearly 7.80% just six weeks ago.

When rates began to rapidly drop, purchase applications rebounded initially, but this improvement in demand fell in the last week. This may be because the holiday home-buying season is generally slower than other times of the year.

Although these lower rates are a welcome relief to many would-be homebuyers, it is clear rates will have to further drop to more consistently reinvigorate demand.

Mortgage Rate Forecast

The average rate rose above 7% in mid-August and reached as high as 7.79% at the end of October. After several weeks of declining rates, many believe we have seen the last of the FED rate increases.

Reuters conducted a poll of 102 economists and most believe that the FED is done with rate hikes. Their focus now, is predicting whether or not there will be rate cuts in the monetary policy in 2024. The majority are not forecasting any rate decreases until at least July 2024.

According to Realtor.com's housing forecast for 2024, mortgage rates and home prices will trend lower, helping to ignite an affordability turnaround in the new year. They forecast mortgage rates to hover near 6.8% and possibly drop to 6.5% by the end of 2024.

Inventory continues to be a challenge that is holding home prices steady. Most forecasters believe inventory levels will drop further as we begin the 2024 home-buying season.

Lake Tahoe Real Estate Market

In Lake Tahoe, we are seeing well-priced homes selling quickly and more negotiability with sellers. The Lake Tahoe housing market remains competitive. Currently, homes are selling after only 53 days on market.

The median sale price of a home in Lake Tahoe was $953K last month, up 19.8% since last year. The median sale price per square foot in Lake Tahoe is $564, up 5.1% since last year.

In Truckee, homes are selling after only 43 days on market. The median sale price is $1,076,500, up 12.7% for the same period last year.

Whether you are thinking of buying or selling your home at Lake Tahoe, the market still presents many great opportunities. Contact me today for more information.