South Lake Tahoe: A Tale of Two... Market Realities.

The Best of Times, or the Worst of Times in South Lake Tahoe? One does have a choice.

(LAKE TAHOE REAL ESTATE BLOG) We thought we'd take a look at recent South Lake Tahoe, CA home sales from a slightly different POV.

There's always lots of ways to look at real estate numbers, and this study we think is about as compelling as anything we've seen in a while to document a fundamental reality about home sales, especially when in a buyers market.

That reality is simply this: a well priced home will sell for more, quicker, and congruently, an overpriced home will take longer to sell, and it will get less.

Here in South Lake Tahoe, there are two basic choices every market-savvy home seller, and conversely every informed buyer should know.

1. Would you rather sell for more quicker?

2. Would you rather take longer to sell, and quite likely sell for less?

Homes that have Sold in 90 Days or less :
The chart below indicates key market data for homes that have sold in South Lake Tahoe, CA in the last 365 days that have sold within 90 days.

The chart above contains the statistics for 114 homes, or 33.6% of all recent South Lake Tahoe, CA home sales.

• All of these homes sold within 90 days or less.
• The median sold price is $385,000.
• The average time it took to sell these homes was 58 days.
• These homes sold for 94.9% of list price.
• Their average size was 1,551 square feet.
• Their average square foot value was $305.

Homes that have taken More than 90 Days to sell :
The chart below indicates key market data for homes in South Lake Tahoe, CA that have taken more than 90 days to sell.

The chart above contains the statistics for 207 homes, or 61.1% of all recent South Lake Tahoe, CA home sales.

• All of these homes took more than 90 days to sell.
• The median sold price is $415,000.
• The average time it took to sell these homes was 205 days.
• These homes sold for 84.6% of list price.
• Their average size was 1,683 square feet.
• Their average square foot value was $296.

Lets Compare the two charts :

• Median Price: houses that sold in 90 days or less sold for $30,000 less that those that took more than 90 days to sell (the actual price, though, as found in the "adjusted price" below is essentially the same.).
• Size: houses that sold in 90 days or less were on average 132 square feet smaller than those that sold in more than 90 days.
• Square Foot Value: houses that sold in 90 days or less had a square foot value of $305, compared to that of $296 for homes that took more than 90 days to sell.
  
  • This is normal as smaller homes generally have a higher square foot value.
  • In this comparison, where the difference is only 132 square feet, the difference is minimal, only $9.
  • The value of 132 square feet at $305 per square foot is $40,260. (it's $39,072 at $296 per square foot.)
• Days on Market: the average time on market for houses that sold in 90 days or less was 58 days, compared to an average of 205 days for homes that took more than 90 days to sell.

• Adjusted Price: To compensate for the difference in size, an adjustment of $40,000 is necessary.
  
  • That figure is either added to the median sold price of homes that sold in 90 days or less, or
  • $40,000 is subtracted from the median sold price of homes that took more than 90 days to sell.
  • Either way, homes that sold in 90 days or less actually sold for $10,000 more in value than those that took more than 90 days to sell.
  • They also took on average 147 more days to sell.

Active Listings that have been on the market for more than 90 days :
The chart below indicates key market data for actively listed homes in South Lake Tahoe, CA that have been on the market for more than 90 days. You may wish to compare this chart with the others. The differences are significant.

The chart above contains the statistics for 209 actively listed homes that have been on the market in South Lake Tahoe, CA for more than 90 days.

• The current median price is $539,000.
  
  • $154,000 more than the sold price for homes that sold in 90 days or less.

• The average time these homes have been on the market is 264 days.
  
  • More than half a year longer than homes that have sold in 90 days or less.

• They are currently reduced to 91.3% of list price.
  
  • Homes that sold in 90 days or less sold at 95% of list price.

• Their average size is 1,998 square feet.
  
  • This is 447 square feet larger than the average size of homes that sold in 90 days or less.
  • 447 square feet at $305 per square foot is $136,335.

• Their average square foot value is $356.
  
  • This is $51 per square foot higher than the square foot value of homes that sold in 90 days or less
  • The square foot value of these homes will come down in order for them to sell.

• Adjusted Price: the actual price of these actively listed homes compared to homes that sold in 90 days or less is $402,665.
  
  • This is only $17,665 more than the median sold price of homes that sold in 90 days or less.
  • These actively listed homes will see further price reductions before they sell.
  • Many will be reduced more than the adjusted difference directly above.
  • And what does sell out of these homes will be on the market much more than half a year longer when they do.

We offer this information as a public service. It is the most detailed and consistent real estate market reporting for South Lake Tahoe found anywhere.

If you have any questions, please call or email us.