Lake Tahoe and Truckee Real Estate Sales Trends
Lake Tahoe and Truckee real estate sales trends have shown increasing sales and growth in home values year over year. Because home sales are tied to whether or not people can enjoy the area, the great snowpack in 2017 led to an increase in sales where the dollar volume for December 2017 was up 31% over December 2016. This trend has continued into 2018.
In the first half of 2018, sales of luxury homes over $2M in Lake Tahoe and Truckee broke records with 66 homes sold. The reduction of listing inventory against the ongoing demand for homes in the luxury and lakefront market slowed the selling activity into the second half of the year. If you were thinking of listing your luxury property for sale, this is an excellent time to do so. Statistics show that these homes are selling at 98% list to sale price. Even at the lower price points, sellers are enjoying strong list to sale price numbers.
At the highest price point in the luxury lakefront market, 2018 also saw the sale of several homes listed at over $20M. Home sales in the prestigious Northstar and Martis Camp areas of Truckee have also increased the dollar volume of homes sold in the region to nearly double, with some values over $7M.
As with any supply and demand situation, such strong sales in the beginning of 2018 meant that the supply has diminished to all time lows and sales activity, which should pick up in the second half of the year, slowed in the 3rd quarter.
We've seen a slight increase in listing activity, although the inventory is still well below demand. 32% of home sales in 2018 have been luxury homes and the median price across the region is up 7%. Days on market is down 15% with an average of 75 days to sell a property. Homes below $600K continue to present a challenge for entry level buyers with many having multiple offers.
The dollar volume of sales in 2018 over 2017 increased 27%, almost matching the increase of 2017 over 2016.This figure would undoubtedly be higher if the listing inventory matched the continued demand of those seeking to find quality of life with a second home in Lake Tahoe and Truckee.
The sales of luxury properties seems to mirror stock market activity and the S&P is up more than 4% year to date. The demand driving the entry level up to $1M market comes from the enormous feeder market of Bay Area parents looking to offer their children access to all that the mountains and lakes of Lake Tahoe provide.
Either way, 2018 will go down as another strong year of sales activity for Lake Tahoe and Truckee. Since 1981, I have actively participated in making the dream of homeownership at Lake Tahoe a realty for numerous clients. Whether you are thinking of buying or selling your home at Lake Tahoe, I'd love to help you. Contact me today for more information.