The Lake Tahoe and Reno areas are coming off of a very strong real estate market, as seen in the first quarter of 2020. Corcoran Global Living compiles valuable data on the local markets every quarter. Detailed market reports for Reno, Tahoe & Truckee in the 1st quarter of 2020 by clicking on the specific area below. These reports are a look back as to what occurred in the 1st quarter of 2020. However, I am sure that many of you are interested to see what we are forecasting for the remainder of the year.
Timing is everything, both in life and in real estate. Right now, I’m still seeing a lot of optimism in the real estate forecasts. If this pandemic lasts for another month or two, we should be able to weather the storm and expect a fairly expeditious economic rebound. If the current crisis lasts for 3 more months or longer, then the chances of a more pronounced economic impact increase. However, we expect to see a speedy return of tourism once this virus subsides. Summer is our busiest season. If we see a return to somewhat normal activities in late spring or early summer, we expect solid transaction activity in the 3rd and 4th quarters. We are anticipating that many people will prefer driving to destinations rather than air travel, which we expect to bolster the Tahoe economic recovery. Additionally, we foresee the possibility that many people may consider moving or purchasing a second home over urban life, realizing that Tahoe provides many options for a healthy lifestyle. Now that we are all becoming more familiar with working remotely, telecommuting options seem more viable for many.
Although we do expect a slow down in real estate activity it’s important to remember that a recession does not mean there will be a housing crisis. Home values actually appreciated during 4 of the last 5 recessions. Our country is in a significantly better position compared to what we witnessed going into the 2008 Financial Crisis and this downturn should be less impactful. Our top advisers are optimistic we should be able to avoid a housing crisis given there will be fewer foreclosures due to more stringent lending practices and foreclosure protection from the CARES Act, builders have been more conservative with far less new construction than in the mid 2000’s, renting is still more expensive than owning in most areas, and mortgage interest rates are at historical lows.
If you would like expert guidance during these challenging times, or just to chat, please feel free to email, text, or call me anytime! I can be reached at 530.416.1955 or michelle@tahoekeck.com. I have successfully navigated many volatile real estate markets and am here as your resource. Please do not hesitate to contact me if I can be of assistance in any way!
