Coldwell Banker-2020 Real Estate Market Report - North Lake Tahoe -Truckee
Residential Properties – Single Family Homes and Condominiums - Activity January – May 2020
Residential Sales Summary 2020
Total Residential Sales:
What a difference a month makes!! Six weeks ago there was a lot of uncertainty about the local real estate market. It seemed like there was potential for solid activity, but only a little actually happening. On the first of May, activity started to pick up (both new listings and new escrows) and we returned to normal(ish) activity for the time of year. Then, suddenly, in the week leading up to Memorial Day Weekend, the market took off. We went from one new contract a day in April, to 3 new contracts a day in early May, to 10 new contracts a day for the last 3+ weeks. This is the kind of activity we see in our peak months of July, August, and September . . . in fact, it’s actually higher than what we saw last summer (which was busy by historical standards)!
190 Residences went into contract in May of 2020
110 residences went into contract in the first 11 days of June
How does that compare to other periods?
110 residences went into contract in May of 2019
125 residences went into contract in all of June 2019
150 residences went into contract in July 2019
170 residences went into contract in August 2019
170 residences went into contract in September 2019
For more perspective, we went from 74 residences in contract on April 14, to 88 in contract on May 13, to 279 in contract on June 11th.
Closed sales were still low in May (because of the diminished activity in March and April). For the month of May, 64 residences sold. That is the lowest number in 10 years (next lowest was 74 in 2011). It is 69% of the number of sales in May 2019 (93) and 64% of the 10 year average for May (101).
Year to Date (January through May) 372 residences have sold. That is tied with 2011 for the lowest number in 10 years . It is 90% of the number of sales for the same period in 2019 (415), and 86% of the 10 year average (432).
Active Residential Inventory:
Active Listings: This is the time of year when we expect the inventory of homes for sale to build steadily. It is typical to see the number listings double, or more, between April 1 and July 1. While the number of new listings was in line with what we typically see in May, the huge number of new contracts is keeping the active inventory steady. There are currently 366 residences actively for sale, down from 382 residences a month ago. Last year at this time there were 540 residences for sale, so our active inventory is down about 30% from where it was a year ago (and typically is at this time of year).
Current Pending Sales: As mentioned above 279 residences are currently in contract. A total of 190 properties went into contract in May. Relative to the activity level in May, there is less than 2 months supply of inventory actively on the market (remember that one month ago we were at a 12 month supply relative to the previous 30 days of activity!).
Coldwell Banker Ranks #1: Among all brokerages in North Lake Tahoe and Truckee, Coldwell Banker continues to rank #1 in total number of sales. For the previous 12 months, Coldwell Banker represented 16.75% of sales. This represents 75% more transactions than our next closest competitor (9.55%). We were also the fastest to adjust to the current market environment and closed over 19% of the transactions in the market place for both April and May.
Median and Average Sales Prices: For the period January through May, the median sales price was $654,250 (up slightly from $650,000 last year) and the average sales price was $986,731 (down from $1,043,665, but that number was skewed by a $37 million sale at Sunnyside. If you remove that sale, the average sale for same period 2019 was $956,814). For the month of May, the median sales price was $691,500, and the average was $948,211.
Sales Under $500,000: For the period January through May, residences priced under $500,000 represented just under 27% of sales or 100 properties sold. Of those sales, 54 were condos. For the same period in 2019 there were 120 properties sold in this price range, 79 of which were condos.
Mid-Range Market Sales $500,000 to $999,999: For the same period, there were 177 sales between $500,000 and $999,999, representing 48% of total sales. Twenty three of the sales were condos. For the same period in 2019, there were 195 sales, including 28 condos.
Luxury Home Sales Over $1.0 Million: 95 properties have sold over $1 million, representing 25% of total sales. This is down from 100 sales in the same period in 2019.
REO & Short Sales: Distressed sales have been very rare the last few years, but it will be interesting to see if that changes going forward. So far this year, there have been just 2 foreclosure sales.
What’s Going On Looking Forward?
What a wild environment . . . 2 months ago I wondered aloud if the typical market cycles might be delayed. A month ago, it seemed like we might be back to normal cycles. And, now, the market cycle is turned on its ear . . . make no mistake, even in the best of years May and June are not as busy as this May and early June have been (from the perspective of homes going into contract). Why did this happen?
The residential real estate market is solid around most of the country for one primary reason . . . right now, HOME is more important than ever. People are spending more time in their homes than they have before.
In Tahoe, we have a major amplifier to that. The profile of our typical buyer has evolved. People have always wanted to be in Tahoe, but that typically meant buying a vacation home (historically 80% of homes here have been non primary residents). People from the tech industry started to have the ability to move up here, permanently, as much as 20 years ago. In the last 10 years, high speed internet started to allow other professionals to make Tahoe and Truckee home. Even Doctors and Lawyers could consolidate their live meetings into a couple days a week in the Bay Area, and then work from home (in Tahoe) the other days, while keeping their family here full time. The Coronavirus has accelerated that evolution, as people across many industries have been forced to use technology to work from home, and realized they can do it productively. Also, the businesses themselves are now far more comfortable with employees working remotely. This has driven demand for homes in Tahoe to all new levels, and has also changed the timing of demand . . . people want to be here now.
If you have questions about the market, or need resources because you can’t get to your home in the mountains, let us know!
Contact Me Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.
Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Residential Brokerage does not guarantee the data's accuracy. Data maintained by the MLS may not reflect all real estate activity in the market. CA-BRE License # 1908304