North Lake Tahoe -Truckee
Residential Properties – Single Family Homes and Condominiums
Activity January – December 2020
Residential Sales Summary 2020
Total Residential Sales:
What a year!!! Remember in February 2020 when I said “welcome to the roaring 20’s”? I had no idea how prophetic that would be!
No matter your perspective, 2020 was a year like no other. The first 2 months were normal enough, but then things started happening that we never could have imagined. COVID, of course, was at the heart of it all. In mid-March stay at home orders were announced which started a roller coaster in our real estate market. Mid-March through Mid-May were eerily quiet. Many people were visiting our area, choosing to shelter in place in Tahoe, but real estate sales were not a priority. Cancelled transactions were almost as common as new escrows. Layoffs and furloughs were common throughout the industry, as were inquiries about unemployment and small business loans. Then, on Memorial Day Weekend, the flood gates opened. For many who had just worked remotely for 2 months, it meant recognizing that they could work remotely in Tahoe. Our market has taken off since.
Prior to 2020, the record for residential sales in a single month, in the Tahoe Sierra MLS, was 182. Every month, from June through December, came in at least 18%, and 4 months were between 45-60%, above the old record.
More residences sold in the last 7 months (1,716) than in any full year since 2005. The 6-month period from July to December, eclipsed every year since 2005 except for 2017 (when there were 1,567 sales).
When the year came to a close, the total volume of residential sales had jumped from $1,377,231,472 in 2019 to $2,405,272,099 in 2020. Yes, that’s a 75% increase representing more than a $1 billion additional dollars!
With activity exploding at this level, prices surged. The average sales price for the entire year was up 17% compared to 2019 ($1,149,198 compared to $985,849). The average sales price for the second half of the year was $1,209,972, which is 23% higher than the average for 2019. The median sales price for the entire year was up 16% compared to 2019 ($780,000 compared to $670,000). The median sales price for the second half of the year was $825,000, which is 23% higher than the median for 2019.
Active Residential Inventory:
Active Listings: There are currently 162 residences actively for sale, down from 200 one month ago and 475 at this time last year. Contrary to what you might think at first glance, the number of new listings in 2020 was actually 20% higher than the number of new listings in 2019, and particularly surged in fall when was double the number of listings in September and October as there was the year prior. So, despite significantly more homes coming on the market, our active inventory is barely more than 1/3rd of what it was a year ago.
Current Pending Sales: The number of properties going into contract has slowed since summer, but it is still busy for the time of year. 108 residences went into contract in December compared to just 76 in December 2019. This is the 8th consecutive month that the number of new contracts was at least 30% higher than the same month of the previous year.
Current inventory represents about 1.5 months of supply relative to December activity, and about one month of supply relative to 4th quarter 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 12.5% of sales. This represents 17% more transactions than our next closest competitor (10.7% of sales).
Sales Under $500,000: For the year, residences priced under $500,000 represented just over 18% of sales or 381 properties sold. In 2019, 28% of sales were in this range.
Mid-Range Market Sales $500,000 to $999,999: There were 1030 sales between $500,000 and $999,999, representing 59% of total sales. In 2019, 49% of sales were in this price range.
Luxury Home Sales Over $1 Million: Luxury sales is the big story. 681 properties sold over $1 million, representing 32% of total sales. This is up 105% from the 333 sales in 2019 (which made up 23% of total sales).
What’s Going On Looking Forward?
What happens next? That’s really hard to predict. One thing is clear, demand still far outweighs supply. So, the upward pressure on pricing is sure to continue. What is not clear is how much supply there will be. Right now inventories of properties for sale are at extreme lows. Will enough homes come on the market to continue to see record numbers of transactions? Or, will the number of transactions decrease purely because of lack of supply? We will see . . .
Why are we seeing such extraordinary dynamics in our housing market?
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. People want to be here now . . . and, as long as Lake Tahoe and Truckee is more affordable than the Bay Area, that trend is not likely to change.
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
2020 Tahoe Truckee End Of Year Market Report
North Lake Tahoe -Truckee