2021 Real Estate Market Report
North Lake Tahoe -Truckee
Residential Properties – Single Family Homes and Condominiums
Activity January – September 2021
Residential Sales Summary 2021
Total Residential Sales:
156 residences sold in September, down 47% from September 2020. Despite being down significantly from last years activity, it was still only slightly below the 10 year avg of 164 sales in September (and would actually be slightly above average if you eliminate the 2020 outlier). Keep in mind, prior to 2020, the record for sales in any single month was 182.
In the first 3 quarters of the year, there have been 1,280 residential sales. This is down 10% from 2020 (1,415 sales), but still 10% higher than the 5 year average, and 17% higher than the 10 year average.
Median and Average Sales Prices: These numbers are plateauing but continue to be substantially higher than pre-COVID (by 60-70% compared to most 2019 comparisons).
When isolating on single family homes, we have moved from a median of $724,250 in the first half of 2020 to $1.135m in Q1 2021, $1.2m in Q2 2021, and $1.175m in Q3. The average priced has moved from $1,080,082 in first half 2020 to $1.892m in Q1 2021, $1.669m in Q2 2021, and $1.788m in Q3 2021.
Active Residential Inventory:
There are currently 197 residences actively for sale (162 single family homes and 35 condos). This is flat with where inventory was a month ago, but still about 1/3 of the inventory we historically expect to see at this time of year.
Current Pending Sales: There are currently 181 residences in contract (down 5% from last month). 122 residences went into contract in September (down from 148 in August).
Current inventory represents about 1.6 months of supply, relative to September activity.
Sales Under $500,000: Through 3 quarters, residences priced under $500,000 represented just 9% of sales or 114 properties sold. For the same period in 2020, 19% of sales were in this range.
Mid-Range Market Sales $500,000 to $999,999: For the same period, 546 residences sold between $500,000 and $999,999, representing 43% of total sales. For the same period in 2020, 50% of sales were in this price range.
High End Home Sales $1,000,000 to $1,999,999: Through Q3, 416 homes have sold between $1m - $2m, representing 33% of total sales. For the same period in 2020, 277 homes sold in this price range, representing 20% of total sales.
Luxury Home Sales Over $2 Million: 204 residences have sold over $2 million so far this year, representing 16% of sales. 55 of those sales were over $5 million. Through Q3 in 2020, 161 homes sold over $2 million, representing 11% of sales. 31 of those sales were over $5 million.
What’s Going On Looking Forward?
The Tahoe/Truckee market seems to be settling into a more normal trend, as far as number of transactions. The reasons why are not so normal. It is largely driven by the historically low inventory, as well as the headwinds that have started to arise on the demand side. Last month we talked about fires, the resurgence of COVID, and the return to school as distractions from the market. Now, we can add the short term rental environment . . . BOTH Placer County AND The Town of Truckee have put moratoriums in place removing the ability to apply for a new short term rental permit in either area (existing permits can still be renewed).
The shortage of inventory still has us in a market favorable to sellers. However, the new variables impacting demand make it difficult to predict what things will look like going into our historically slowest months of the year. Sellers don’t hold all the cards like they did in the second half of 2020 and first half of 2021. Overpriced homes are sitting on the market, there aren’t multiple offers on every home, and buyers can find a bit of leverage in certain situations.
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