Real estate has a huge effect on economies, trades and countless professions. I was not surprised when it was recently deemed an essential service.

“Real Estate Now Listed as an Essential Service in March 28, 2020 Federal List of Essential Critical Infrastructure Workers

Today, the U.S. Department of Homeland Security Cybersecurity and Infrastructure Security Agency (CISA) updated its list of essential services during the coronavirus (COVID-19) crisis and expressly included residential real estate. Since Governor Newsom’s March 4, 2020 order incorporates this list, the order now includes residential and commercial real estate, including settlement services, as essential services in California. However, if a city or county has an order with a more restrictive standard regarding what qualifies as an essential service, or more restrictions on activities, those guidelines will still govern the activities of a licensee. You can read the full CISA memorandum here.

Notwithstanding this new development, all real estate licensees must take into account the health and safety of their clients and fellow licensees, and follow the existing protocols for protecting against the spread of COVID-19. If such health safeguards and protocols are not followed, the rule for the state could easily change to stop or restrict all real estate activity. To that end, in conformity with current health guidelines, real estate licensees should follow all CDC and local health mandates.

1. No open houses should be held.
2. Showings should be done virtually, if at all possible.

An updated FAQ and more information on recommended best practices will be posted on the car.org/coronavirus website as soon as practicable.”

PDF of CISA Guidance for Essential Services:

CISA_Guidance_on_the_Essential_Critical_Infrastructure_Workforce_Version_2.0_Updated

How’s the Kingswood Market?

Kingswood and Kingswood West combine for over 700 homes and there is only one active listing in the neighborhood currently. I have an additional property listed for $425,000 but it won’t hit the market until June. A colleague has another property in escrow which never saw the open market.

This signifies incredibly low inventory. If you are considering a sale in Kingswood, reach out. This is historically low and creates an amazing opportunity for sellers.

How’s the Dollar Point Market?

There are over 500 homes in the subdivision and guess how many are for sale? Exactly 1. It’s pretty incredible. There are 2 in escrow at $1.1m and $1.9m. Among the upcoming listings which I know of is 50 Edgecliff Court. This pano lakeview home will enter the market at $5m which is almost a record high for Dollar Point non-lakefront.

Dollar Point has become majorly attractive for buyers. Days on market is 1/3 of that for the surrounding area. “Nothing is for sale and everything is selling” – my phrase for Tahoe thus far in 2018 applies especially well for DP.

How’s the Lakefront Market?

Can you say wow?! 

We have seen historic sales at the uber high end. In the last 30 days estates at $40,000,000 and $25,000,000 sold before getting a chance to hit the open market. The larger sale saw a 4 day escrow – amazing. There were multiple offers on a $37,000,000 property in Incline Village. There are other high-end listings which will trade this year. Currently, the highest price is Chase International’s listing for which I am a Listing Ambassador: Crystal Pointe, $75,000,000.

Another property at $11,000,000 just entered escrow after just a few weeks on market. This property sold 3 years ago for $7.75m and no real improvements were made. It has one of the most impressive boathouses in the entire Basin – it’s basically a barn large enough for two very large boats plus there is an indoor entertaining area.

“There’s nothing for sale and everything is selling.”

We are seeing historically low inventory. Some neighborhoods have just one or two homes being offered for sale. Currently 28% of our inventory is in escrow – this is very high for our area. Homes under $500k are down to an average of 44 days on market – this is 20% lower than last year. Homes between $700 – $1m average 127 days on market.

We have seen historic sales at the uber high end. Estates at $40,000,000 and $25,000,000 sold before getting a chance to hit the open market. The larger sale saw a 4 day escrow – amazing. There were multiple offers on a $37,000,000 property in Incline Village. There are other high-end listings which will trade this year. Currently, the highest price is Chase International’s listing for which I am a Listing Ambassador: Crystal Pointe, $75,000,000.

Interest Rates: The Fed’s quantitative easing program from 2008 is beginning a scheduled slow down. This makes interest rates increase. Two other factors could contribute to increased rates in the near future: Inflation is looming and future Federal Reserve Bank meetings – some economists are predicting 4 mortgage interest rate hikes in 2017. This will make it more expensive for many buyers to purchase homes as time goes on.

April 2018 vs. April 2017

2018: 93 Single Family Just Listed, Median List Price: $715,000

2017: 126 Single Family Just Listed, Median List Price: $759,000

2018: 52 Single Family Sold, Median Price $945,000

2017: 61 Single Family Sold, Median Price $690,000

37% Increase in Median Sold Price

Currently the heaviest action in the Tahoe-Truckee marketplace is in the price bands between $400,000 – $700,000 (51 in escrow). This range represents 23% of total listings but it accounts for 40% of today’s escrows. The other hot price band is $1m – $1.5m where 22 homes are in escrow. 

Overall 27% of today’s entire MLS inventory is in escrow. This is a very high number and highlights the fact that we are very low in the number of homes offered for sale.

For more statistics please click here